Balance Scorecard

Making a Balance Scorecard was quite a hard journey, but overall it's a reasonable way to make use of all the best resources, Balance scorecard is a broad way to measure performance and steer strategy it expands the way one measures performance by four dimensions of measurement :

Financials

From financial perspective it includes

* Operating income / Earnings Per Share,

* Maximization of Share price,

* Control over costs,

* Availability of liquidity (Cash to cover immediate expenses),

* Return on capital and

* Economic value added,

Customers

From the customer perspective it includes

* customer satisfaction,

* customer retention and

* Increase in sales and market share in existing as well as new target segments,

Internal processes

From Internal process perspective it includes

* cost throughput in quality and other areas like

* procurement,

* order fulfillment etc

Learning & growth

From learning and growth perspective it includes:

* Satisfying customers and

* Customer Retention

* Skill sets

A meaningful scorecard is viewed as an integral part of an organization's overall management system. In a balanced scorecard those critical internal processes are identified whose improvement will have greatest strategic impact. A balance scorecard (BSC) is a nine step process which starts all the way from assessment which includes development plan, strategic elements, it includes a company's mission, vision, challenges, enablers and values for example Meezan bank's mission is to provide shariah compliant Islamic banking to its customers consisting of halal profit. Mudarbah , Musharaka, Murbah management plan is introduced and a focused communication workshop is organized to give key messages and timing. Step two consists of customer values, strategic themes and strategic results occurring as a part of strategic themes. It is totally customer focused for example Meezan bank looks forward to what its customers want, they want halal profit on their investment, they want interest free banking etc. Third step consists of strategic action components, the strategic elements developed in step one and step two are decomposed in this step which serves as a basic building block, objectives are initiated and categorized by perspective for example Meezan maintains a halal diversified portfolio so it becomes the most liquid Islamic bank . Fourth step consists of cause and effect links and relations, The cause and effect linkages between the enterprise-wide strategic objectives are formalized in an enterprise-wide Strategy Map. The previously constructed theme strategy maps are merged into an overall enterprise-wide strategy map that shows how the organization creates value for its customers and stakeholders.