Balanced Scorecard Illustrated
A balanced scorecard is the sum of all relevant inputs; the visual scorecard is the graphic representation of findings or results. Think of the visual scorecard as a tool for presenting data to managers of board members at an organizational strategy meeting.
This image represents the classic visual scorecard, in which "perspectives" of strategic importance are organized around a higher-level vision or strategy. The visual scorecard does not always have to be in this format; it may appear as a matrix, or a series or matrices that cross-reference issues of strategic importance with objectives or measures within the major perspectives.
The cyclical visual scorecard with four components (financial, internal, innovation, and customer) is a very common design that successfully bridges performance and strategy. Recent design enhancements to visual scorecards include the use of red (danger), yellow (caution), and green (safe) color schemes to reflect various performance attributes. An abundance of red immediately sends a signal to managers that serious improvement is needed in order to satisfy organizational targets. Similarly, the presence of green indicates that the targets are being met or exceeded.
Why Use Visual Scorecards?
A good visual scorecard is easily deciphered by all stakeholders, immediately conveying areas of strength, weakness, success, or deficiency. Visual scorecards make the data in balanced scorecards instantly readable.
When communicating business processes to stakeholders, managers are often tempted to rely on jargon and detail-oriented descriptions of strategy and process. The visual scorecard gives stakeholders a clear understanding that jargon and business-speak may not. It is primarily a communication tool.