webMethods and Intelligent Business Operations 10.2 | Designing and Implementing Business Process Models | ARIS Method manual | Balanced Scorecard method | The Balanced Scorecard concept | Strategic management process and Balanced Scorecard | Planning and targets
 
Planning and targets
The BSC can be used to combine the process of strategy implementation at the various corporate hierarchy levels with the budgeting process. The purpose of this combination is to align all resources with the corporate strategy.
The BSC is integrated in four steps into the long-term strategic planning and budgeting process.
1. Ambitious targets are set that are communicated to and accepted by the employees. The relevant KPIs relating to the results in the client and financial perspectives are identified by the cause-and-effect relationships between the KPIs.
2. Strategic initiatives must set out exactly at the KPIs with the greatest discrepancy between current value and target value. In the long term, this procedure aligns capital investments and action programs with strategically significant target values.
3. Critical, company-wide initiatives are identified to create synergies with the strategic objectives.
4. Based on budgets of varying maturities (5, 3, and 1-year plan), KPI plan values are linked to business planning.
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