Success Factors, Customization, and Limitations of Implementing the Balanced Scorecard

By: Lotfi Al-Sarori

In our last article of the Key Business Concepts 101 series, we presented the Balanced Scorecard. We explored how it can help companies define and implement strategies effectively through its four main perspectives - Financial, Customer, Internal Process, and Learning & Growth. And how it provides a mechanism to compare actual vs planned outcomes, by identifying objectives, metrics, targets, and relevant initiatives, so that corrective measures can be taken if there are variances. We've also examined the Strategy Map, which links diverse objectives across perspectives.

How can we begin putting the BSC into action?

In this article, we'll delve deeper into the topic and demonstrate how you may adopt the BSC in your own organization, how you can tailor it to your needs, and where its limitations lie.

Key Business Concepts 101: The Balanced Scorecard

By: Lotfi Al-Sarori

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The Balanced Scorecard is a very popular strategic management framework, and it will be the subject of this article of our Key Business Concepts 101 series. The Balanced Scorecard (BSC) is a management tool that has grown in prominence since its introduction by Kaplan and Norton in a 1992 article in the Harvard Business Review.

The BSC can be used to create, carry out, keep tabs on, and modify corporate strategies and plans. As a strategic management tool, the BSC aligns a company's everyday actions with its long-term goals. The ability to monitor and quantify performance is another benefit. Financial, customer, process, and learning and growth are the four main pillars around which the company's strategic initiatives are built. The purpose of this effort is to develop a streamlined and simplified dashboard that provides a comprehensive view of the company's performance from these four perspectives.

Key Business Concepts 101: Competitive Analysis Part II

By: Lotfi Al-Sarori

Continuing our discussion of competitive analysis, in this second part, we go into a more detailed analysis of competitors. In part I, we recommended selecting a diverse list of competitors to examine. After performing a SWOT analysis and gathering information about them such as their market share, customers, financials, and vendors, a more detailed analysis would provide further insight. It can help you in finding a better marketing positioning and creating your marketing plan.

 

Key Business Concepts 101: Competitive Analysis

By: Lotfi Al-Sarori

In the last article of Key Business Concepts 101, we started our discussion of performing competitive analysis, and focused on the very well-known Porter’s Five Forces. It is a key framework which can provide businesses with very valuable insight into their industry, market, and competition. In this article, we pick up the pace and go into more details regarding competitive analysis. 

Figure 1- Methods for Strategic Business Planning

Key Business Concepts 101: Porter’s Five Forces

By: Lotfi Al-Sarori

Continuing our topic on tools for strategic business planning from our previous article, today we further our discussion on the topic and discuss performing competitive analysis using Porter’s Five Forces framework.

To perform competitive analysis for your business, you would need to evaluate the market, and study the competition. A good start would be to explore market reports related to your industry. These are things like market size, key players, industry trends, etc., which can provide you with valuable insights. Understanding the different aspects of your industry and knowing your competitors is crucial to the success of your business. One particular model that is very useful in this area is by Michael E. Porter. It can provide you with a holistic view of where you stand relative to your competition and the industry in general.

Key Business Concepts 101: Strategic Planning Tools- PESTLE and SWOT

By: Lotfi Al-Sarori

In a previous article about Key Business Concepts 101, we covered the topics of business process and how to improve their quality. The article was an introduction into the world of business management and its concepts, and it was planned to be the first article in a series about business management and planning topics. Continuing our discussion on the topic, in this article, we take a look at strategic business management aspects and the common techniques used in strategic planning.

Establishing and running a business requires careful planning. Strategic planning is the first step in strategic business management. It requires thorough analysis and proper preparations to make sure that the work to be done is based on careful study and a justified approach.

Key Business Concepts 101: Quality and Process Improvement

By: Lotfi Al-Sarori

“Better safe than sorry”, a saying by Samuel Lover that we hear, usually as a friendly advice, when we are about to pursue an endeavor that requires cautiousness to minimize risks. This entails, for example, being well-prepared when starting a new business, project, or just a family trip. Planning the details of every step you take and making sure everything is done properly is essential to avoid risks, time wastage, and unnecessary expenses, and to get the results you seek. Similarly, organizations create business and operational plans to implement and follow throughout the year to achieve the objectives they seek in an efficient and productive manner.