Yesterday, the leadership team at WhoGoHost and I completed our two-day retreat where we discussed the success and challenges of 2022 and engaged about our strategies for the new year.
This year has been a tough year for most. The sharp increase in the devaluation of the Naira against the dollar and the inflation did not help. These challenges ate into our margins and also impacted the businesses that we support. Experts around the world believe that 2023 would be even tougher, so we discussed how to be more efficient, audacious, and innovative in the new year.
I know many businesses are having similar discussions, looking at their strategies and asking themselves how they can do better in the new year. As business leaders, we usually come up with strategic goals, targets, and timelines. Some of us have struggled in actualizing these strategic goals as have I. I would like to share what we are doing differently this time. We are using the Balanced Score Card (BSC).
What is a Balanced Score Card
A BSC allows you to think beyond just the financial perspective, which is what we tend to focus on – growing in revenue, reducing costs, etc. With the BSC, you set goals for the customer perspective, the internal processes, and learning & growth. Before you can achieve those lofty financial goals, you need to ensure that your team is well-trained and motivated (learning & growth), your processes are efficient and effective (internal processes), and your customers are satisfied and growing (customer perspective). The BSC forces you and your team to dig deeper and identify how to grow the numbers.
Once you have set the BSC for your organization, then you proceed to set the BSC for your teams and from there, you set KPIs for each team member. This ensures that the individual KPIs are aligned with the organization’s goals and increases the chances of success dramatically.
This is a lot of work, I must confess. But it is worth the effort. It is also a journey of discovery as you identify how to improve the chances of success for your business in the new year.
You may check out this link to learn more about the BSC.