Modeling Business Environment with Balanced Scorecard

When we are talking about Business Scorecard we are actually talking about some model of the business environment. It might be tightly linked with the operational system of the company, and/or it might be focusing on a company’s general direction in the form of a strategy. Here are some case studies about how BSC Designer was successfully used for the purpose of business modeling.

Model strategy implementation

This product is particularly effective for modeling and managing of a portfolio and projects. It demonstrates the successful way of management strategy implementation.

Ivelin Stefanov, Assistant Professor, New Bulgarian University, Sofia, Bulgaria

The analytic method for evaluating projects is the objective evidence of successful management of expectations at all levels of a business organization. I hope to present my students a successful product for their future work as project leaders and managers in the IT business. In turn, they can develop their relation to the modeling and evaluation of the business environment.

A note from developers:

Thank you for your opinion. I find your approach to the business modeling very interesting. There are many tools on the market for process-level modeling. BSC Designer supports the operation level with KPIs, but what’s more interesting is the strategy map functionality that you have mentioned.

With strategy map one can get a big picture of:

1. What is going on in the company, for this purpose there are KPIs and dashboards;

2. Why it is happening. It is easy to track the reason and the consequence as business objectives are not just listed on the strategy map, but linked with case-and-effect connections.

3. What the company is doing about this, as all KPIs and business objectives should be aligned with an action plan.

Strategy map shows what is going on in the company

For example, when a KPI “Average time spent on website” is decreasing and getting into the red zone (“what” part). A project leader can see how this KPI is related to other business objectives and draw a conclusion that the KPI is in danger because the website content is not as good as it supposed to be (why part). Then he or she can plan a business response to this problem or correct the current action plan (action part).

In this situation a lot depends on a manager and how he will react according to the situation. In this case BSC Designer plays a role of an automation tool that help a manager see not only operational picture presented on the dashboard, but a strategic picture where business objectives are aligned with each other, KPIs and action.

Use BSC Designer to Create Your Own BSC Models

My task is the implementation of the Balanced Scorecard. One can use BSC Designer to create his own BSC models.

Wilfredo Briceńo, Director Consultor de Wbric-Rpérez, C.A.

BSC Designer is an easy to use tool, that gives visually accurate information. You can create and browse your models of BSC without any complications and facilitates the use of key indicators. I think that is also very intuitive when data is needed to be exported or imported.

A note from developers

Hello Wilfredo! Thank you for sharing your feedback about BSC Designer. You are right; the Balanced Scorecard models created in BSC Designer are something that can be really useful for any top manager. And we are trying to help our customers by giving them some templates that they can use in their BSC projects. For example, we have an HR balanced scorecard that anyone can take and customize according to his needs.

HR Balanced Scorecard

You mentioned KPIs, yes, BSC Designer gives all the means to manage these measures. I believe what is more important is that BSC Designer allows one to manage business objectives as well. Organize them on the strategy map and align KPIs with specific business objectives. This is a great way to present a big picture of your business.

As for data import/export, we are trying to do our best. Our research shows that most business people have their data in Excel spreadsheets, so in both editions of BSC Designer (online and desktop) you can easily export the data from Excel file into the program. Have a look at this page, it is for BSC Designer Online and shows all of the possible ways to import data.

We are inviting business professionals to join the discussion about Balanced Scorecard and business performance models that one can create using this framework. How did you apply the Balanced Scorecard? Have you used generic strategies? How you did an alignment with KPIs and initiatives? Feel free to share in the comments.

Using BSC Designer to Model and Develop Business Strategies

I am working on software and hardware application development and tried BSC Designer for checking out special scenarios for project development and controlling.

After checking the BSC Designer Light version, I downloaded the BSC Designer PRO trial-version because of its additional features.

 Check out LinkedIn Profile Dr. Udo Mattusch, Senior Developer at http://www.umanet.de (Cologne, Germany)

The graphical interface improves the interactive modeling of business processes. Especially the possibility to manipulate values and to see the results immediately makes BSC Designer a “creative” tool. The software has an excellent functionality for developing strategies, modeling the underlying processes and checking out the consequences of changes under specific conditions.

Applying BSC Designer to project data with known results allows a realistic estimation of the relationships between conditions given for processes in the past and achieved results. Based on such “success patterns” BSC Designer improves the modeling of expected results for future strategies depending on given conditions.

BSC Designer is an easy-to-use tool for planning and prototyping business strategies under respect of context dependent influences. Different scenarios can easily be prototyped by using BSC Designer’s category-indicator structure and its weighting mechanisms. Using BSC Designer as web-based service makes it possible to show all participants of a project the performances of business processes at a glance.

I hope to convince colleagues to use BSC Designer to improve our job with it and to implement the BSC approach in our company.

A note from developers:

Dear Dr. Mattusch. We are really proud to receive feedback like this. I’d like to share with you and other potential users of our product the progress that we made in development of BSC Designer. Back in 2010 when you tried the product it was focused on KPIs and strategy maps played a minor role. As you are in software development you can confirm that to develop a good product a company needs to develop its knowledge as well. We were helping many companies with the Balanced Scorecard and it appeared that people were focusing too much on KPIs and forgetting such a powerful tool as a strategy map.

Using the strategy map one can model not only KPIs, categories, their relevant weights, but an alignment between KPIs and business objectives. On the real strategy map business objectives are not just the list of potential goals, but are the developed structure of elements linked to each other by cause-and-effect connections.

Strategy map shows the big picture and links it to the KPIs

Compare the modeling with KPIs only and modelling with strategy maps. KPIs tell the story about current business performance, while a strategy map shows the big picture and links it to the KPIs. Here is how it works in BSC Designer.

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