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Strategic Planning & Balance Scorecard

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CP-BSC Balanced Scorecard

The Balanced Scorecard Module serves as a strategic communication and information system for the implementation and monitoring of strategic goals. Qualitative and quantitative indicators show the current status of each goal with the help of warning colours and interactive web graphics. Cause-effect relationships show important interdependencies within the company. Action plans support the implementation of strategic goals. The Balanced Scorecard informs all staff of the current state of implementation of the goals of the enterprise.

 

The Organisational Structure – Business Units

The purpose of the Balanced Scorecard is to implement the vision and strategy of the entire enterprise in operative business processes. To do this, it is necessary to break down the strategic goals to the level of individual business units, departments or even members of staff. In CP-BSC, any organisational structure can be depicted. It is also possible to define access rights in such a way that optimal communication flow is ensured. The organisational elements are created very simply with a built-in editor, which those responsible for the BSC module can use in a number of ways. Subsequent changes to the organisational structure can be carried out without loss of data.

 

The Perspectives

The Balanced Scorecard starts with four classical perspectives in which strategic goals, their respective measurable quantities, target values and action plans are displayed. The following graphic shows these perspectives with the questions that underlie each:

 

 

 

 

 

 

In CP-BSC you can work with these classic perspectives, but the flexibility of the software means that any number of perspectives, classic or self-defined, can be used. They can also be individually defined specifically for a particular company or line of business. Every part of the enterprise (business area, department, etc.) can have their own perspectives.

 

The strategic goals and their descriptions

To shape and direct strategic enterprise control in a goal-oriented way, the first step is a clear and concrete formulation of the strategic goals. The strategic goals then become the core of the Balanced Scorecard. In CP-BSC, the strategic goals are defined and allocated to their appropriate perspectives and organisational units using the structure editor. To ensure that all involved in the BSC process understand the meaning of the goals, each goal can be given an explanatory text.

 

Cause-effect relationships

The relationships between the individual goals can be rather complex. Existing, or perhaps just assumed, interdependencies between different goals can easily be displayed graphically in CP-BSC for a better overview. Both positive and negative influences, with different strengths, can be defined and documented. This is done using the appropriate editor, which allows cause-effect relationships to be defined simply by clicking on the relevant goals. The transfer of relationship information to the web front end of CP-BSC again occurs automatically.

When displaying a goal in the Intra-/Internet, the user can see at once whether or not the goal is part of a cause-effect network. Clicking on the appropriate symbol allows both causes and effects to be traced (horizontal and vertical drill-down analysis).

 

Measurable quantities (indicators, key ratios)

Having defined the goals, the definition of the measurable quantities can begin. Without measurable quantities, successful management is hardly possible. They allow goals to be observed, met and perhaps exceeded. Relatively generally formulated goal descriptions are made more concrete through the use of measurable quantities.
The measurable quantities can then be allocated to the strategic goals in the perspectives and organisational units. The editor allows further clarifications to be made, for example by adding a comprehensive definition of the measurable quantities, complex mathematical formulae (if necessary), specification of units, etc. This is also where the warning limits for each quantity, which determine at what values the different warning colours will be switched on, are defined (see below), giving the user a quick view of how well or how poorly each goal is being met.
Measurable quantities can be linked to the operative software tools available from CP and so integrated into the entire Controlling system. Target-actual variances can then be automatically displayed and analysed over the web.

 

Target values

The specification, planning and budgeting of goals and their associated target values can also be done using Corporate Planning's specialist planning software. The data (target-actual data and variances) can be placed on the web server for access by all Balanced Scorecard users. The target values can be quantitative (turnover targets, number of complaints, key ratios, etc.) or qualitative (satisfaction index) data. These data are automatically prepared and displayed on the Intra-/Internet in spreadsheet and interactive graphic format.

 

Warning limits

Warning colours immediately show the BSC user where action is required. The following colours are used in the display:

÷ Green circle – positive variance (goal achieved)
÷ Yellow triangle – slight negative variance (goal just missed)
÷ Red diamond – large negative variance (goal missed)
÷ Flashing red diamond – extreme negative variance (goal clearly missed)

 

 

 

Implementation and configuration

The CP-BSC complete solution
Due to its ease of use, flexibility, quick integration into the IT environment and short implementation times, CP-BSC is eminently suitable for large enterprises, progressive medium-sized companies and public bodies. The project of implementing the CP-BSC complete solution contains the following elements:

Software-Module CP-BSC
You will receive the complete software with all the functionality required for the construction, implementation and use of an enterprise-wide, web-based Balanced Scorecard. This includes the necessary server programs, editor programs and the desired number of web clients.

Consultation, assistance and support through "Active Workshops"
In close co-operation with your enterprise and the project leaders, we will take you through the process of implementing a Balanced Scorecard, from the development of its contents to its real-time use, with particularly practiceoriented "Active Workshops". These are a great help when finding the optimal implementation of the Balanced Scorecard. The following "Active Workshops" are included in the programme:

÷ Check strategy remit
÷ Define general framework
÷ Develop the Balanced Scorecard
÷ Manage the roll-out
÷ Ensure problem-free use

 

Webdesign

The Balanced Scorecard module is to be used on the company's internal intranet or on the Internet. The software is delivered with a standard design. If you wish, we will adapt the design of the web solution according to your individual proposals to reflect the Corporate Design of your company. This applies to the following areas:

÷ Use of company colours and fonts
÷ Integration of company symbols/logos, etc.
÷ Adaptation of the user interface, if required