Strategic map takes the same vision and strategy of the organization as the core, uses comprehensive and balanced ideas, and transforms the company's vision and strategy into finance, customers, internal processes, innovation and learning according to the organizational structure. Learning) and other four levels of a series of specific strategic objectives (that is, the factors of success). According to the four dimensions of the balanced scorecard of each responsible department, the achievable goals are set and the corresponding performance evaluation index system is set. These indicators are not only highly related to the strategic objectives of enterprises, but also take into account and balance the long-term and short-term objectives, internal and external interests of enterprises in the form of leading and lagging, and comprehensively reflect the financial and non-financial information of strategic management performance.
By the competent department and the * * * responsible department agreed on the specific scoring rules of each index. Generally, the benchmark value, target value and actual value of each index are compared, and different scores are set according to different ranges of "performance difference". Finally, in the form of comprehensive evaluation, we regularly (usually for one month or one quarter) assess the implementation and achievement of the objectives of each responsible department in four aspects: finance, customers, internal processes, innovation and learning, and give timely feedback, so as to adjust the strategic deviation or correct the original objectives and assessment indicators in time to ensure the company.
A well-structured balanced scorecard should contain a series of interrelated goals and indicators, which are not only consistent, but also complementary. The balanced scorecard provides a framework for transforming strategy into operational content through causality. According to causality, the strategic goal of an enterprise can be decomposed into several sub-goals to realize the strategic goal of the enterprise, and these sub-goals are the goals of various departments. Similarly, intermediate goals or evaluation indicators can be further subdivided according to causality until they finally form performance indicators and goals that can guide individual actions.
L financial level
Financial indicators are the traditional indicators commonly used in the performance evaluation of general enterprises. Financial performance indicators can indicate whether the enterprise's strategy and its implementation and execution contribute to the improvement of the final operating results (such as profits). However, not all long-term strategies can generate short-term financial profits quickly. Financial objectives are usually related to profitability, and the main contents of financial indicators are: income growth, income structure, cost reduction, productivity improvement, asset utilization rate and return on investment.
L customer level
Balanced scorecard requires enterprises to interpret their mission and strategy as specific goals and points related to customers. Enterprises should be oriented to target customers and target markets, and should focus on whether to meet the needs of core customers rather than trying to meet the preferences of all customers. Customers are most concerned about five aspects: time, quality, performance, service and cost. Enterprises must set clear goals for these five aspects, and then refine these goals into specific indicators. At the customer level of the balanced scorecard, managers have established the customers and markets that their business departments will compete with, as well as the measurement indicators of their business departments in these target customers and markets. The customer layer enables managers of business departments to define customer and market strategies, thus creating excellent financial returns. The main contents of customer level indicators include market share, customer satisfaction, customer retention rate, customer acquisition rate, customer churn rate, customer profitability, customer retention rate and average profit rate from customers.
L internal business process level
At the level of internal business processes, managers should determine the key internal processes that the organization is good at, which will help business departments to provide value propositions, attract and retain customers in target market segments, and meet shareholders' expectations for excellent financial returns. The order of establishing a balanced scorecard is usually to set financial and customer objectives and indicators first, and then set internal process objectives and indicators. This order enables enterprises to grasp the key points and concentrate on measuring the processes closely related to the goals of shareholders and customers.
The performance evaluation of internal operations should focus on the business processes that have the greatest impact on customer satisfaction and the realization of financial goals. Internal operational indicators include both short-term improvement of existing business and long-term innovation of products and services. The internal operation level index involves the improvement/innovation process, operation process and after-sales service process of the enterprise.
L learning and growth level
In the face of fierce global competition, the technology and ability of today's enterprises can no longer guarantee them to achieve their future business goals. Although reducing the investment in enterprise's learning and growth ability can increase financial income in the short term, the adverse effects will bring a heavy blow to enterprises in the future. Therefore, the goal of learning and growth provides the foundation and foreshadowing for the grand goals of the other three levels, and is the driving force for the scorecards of the above three levels to achieve excellent results. Furthermore, in the development process of the balanced scorecard, the causal relationship behind the strategy is particularly emphasized, and the final financial goal is achieved by completing the evaluation indicators of the client, internal operation and learning growth.
The first three levels of the balanced scorecard usually reveal the gap between the actual ability of the enterprise and the ability necessary to achieve excellent performance. In order to make up for this gap, enterprises must invest in the re-engineering of employees' skills, the optimization and promotion of organizational procedures and daily workflow, which are the goals pursued by the learning and growth level of the balanced scorecard. It establishes the basic framework that enterprises must establish in order to create long-term growth and improvement, and establishes the key factors for current and future success. The index of learning and growth involves the ability of employees, the ability of information system and encouragement, authorization and mutual cooperation. Such as employee satisfaction, employee retention rate, employee training and skills, and the driving factors of these indicators.
L case study
In the online education industry, the analysis of customers' preferences shows that customers pay more attention to the overall service quality, and the overall service quality, including network quality, consultant quality, teaching material quality, product cost performance and so on, will play a driving role. Therefore, the improvement of network quality, consultant literacy and teaching material quality will bring higher customer satisfaction/customer happiness index, and then promote the improvement of financial performance. Therefore, customer satisfaction and overall service quality are brought into the customer level of the balanced scorecard. The overall service quality is achieved by shortening the business cycle and improving the internal process quality, so these two factors become the internal business process indicators of the balanced scorecard. Furthermore, in order to improve the quality of internal processes and shorten the cycle, enterprises need to train employees to improve their skills and service quality. Therefore, the quality of employees has become the goal of learning and growth. This is a complete causal chain that runs through the four levels of the balanced scorecard.
In the financial industry, the competition is fierce. At the customer level, customer happiness index and comprehensive service quality will greatly affect customer retention or loss. In the banking and insurance industries, the 80/20 principle is particularly important. Those core customers in the bank (the total assets in the bank exceed a certain amount, such as 5 million, accounting for 20% of the bank customers) usually create 80% of the income (profit and value) for the bank. Therefore, the banking industry will adopt various customer care and maintenance plans (such as concerts, parent-child/health salons, etc.). ) to core customers because of their financial behaviors and activities (deposits and loans, wealth management, insurance, funds, bonds, public and private funds, etc.). ) directly affects the contribution of income to the financial level of banks. Therefore, at the financial level, banks plan financial strategies around three major themes: increasing the total assets of branches and sub-branches, enhancing the contribution of products, and reducing the cost of developing and maintaining customers. At the customer level, strategic planning and design are usually carried out from two paths: core customers and non-core customers. And will implement more special strategic planning for core customers, including customer manager's service satisfaction, wealth management manager's service satisfaction, and the satisfaction of holding financial service products. However, in terms of internal processes, learning and growth, the strategies and goals of enterprises are similar, so I won't go into details.