Balanced Scorecard Toolkit for Crisis Management

Balanced Scorecard is an effective management tool that empowers the managers at the time of crisis to render better control over the influencing factors and circumstances. Since each crisis poses different threats to distinct organization therefore there is a need to keep a track of the influences which can be done so with the help of scorecards. Thus, organizations can use scorecards for detecting and studying the proceedings, methodologies, tasks and assigned activities in an unbiased manner while heading towards the set targets.

One of the most affecting tools that balance scorecard offers is the KPI – Key Performance Indicators which perform the task of benchmarking and gauging. Corporate entities can easily measure their outcome in a particular time and plan and control methods for their future activities. This is a defensive strategy that allows business entities to wander away from their set objectives and fall into an emergency situation.

The KPI under balanced scorecard can be categorized broadly in four groups. They are namely; financial, customer, education and growth and internal processes.

The financial indicators represent the performance of the entity in monetary value and worth. It entails factors like; revenue, profit, cost and expenses etc. which can also be used as limits. From customers’ point of view it encompasses clientele, issues resolved, awards and credibility.

Skill pool is another very important factor that should be properly watched over by the management determining if the employees possess the appropriate abilities to handle a situation. If not, they can be given training within the time in hand both in term of technicality and psychology and provided with proper counseling.

Crises or critical situations within a workplace can be numerous resulting in heavy loss and expenses to the firm along with affecting the lives of many associated with the entity. Emergency situations range from human breakdown, rumors, violence to technical complications and organizational misdeeds. How strongly have they affected the attitudes within an organization depends on how intense and wide-spread the situation is.

Balanced scorecards provide sufficient knowledge and technical answers to shape the otherwise distorted state of the allocation of resources for needy organizations. It offers multi-dimensional aspects to be studied by the organization to understand their relation with the firm itself. It is an effective support system that lessens the time of responsiveness of the firms providing valuable, accurate and objective information to the various levels of management across the hierarchy of the organization.

The result extracted through this software is based on numerical values. Since the entire data is quantified drawing conclusion and differentiating the stronger operational levels from weaker becomes relevantly easy. Results can also be communicated with appealing stop lights as visual effects during presentations and meeting. Another tool of strategy map can also be used to represent data for comparison.