The balanced scorecard is an exceptional tool which delivers information to the business regarding its performance. It comes in two types: the departmental and the corporate Balanced Scorecard (BSC).
As the name suggests, departmental BSC focuses on individual departments or divisions of the company. This can also measure the performance of an activity and a project that a particular department is handling at the moment. On the other hand, the corporate BSC takes the whole organization and measures the performance of the entire company along with the progress of the goals based upon the vision of the organization.
Before you design the balanced scorecard, you should first decide whether it will concentrate on assessing the whole business or if it will just take on a certain division in the company. After you have made a choice, you can now design the scorecard. If you find it difficult, you can use software applications that aid in the designing process. Now, if you need a simple scorecard which everybody can understands really well and will not take much of your time as you create it, you can choose to generate BSC in Excel.
Yes, it is possible to create BSC in Excel. The result would be that you will have an undemanding and straightforward scorecard using the popular Excel program. Make sure though that you have all the necessary data that you will be using. The essentials that make up your Excel scorecard will include the key performance indicators, measures, metrics, goals, objectives and the strategies among others. Now that you have all the essential data, you can now open Excel and create a new workbook.
If you have seen examples of balanced scorecards before, this will be easy for you especially in creating the much needed columns in the spreadsheet. Typically, you will need four rows and six columns for every perspective. As you know there are four perspectives in BSC which are customers, financial, learning and growth and internal processes.
The number of rows and columns will of course depend upon the designer and the data that you need to enter. So, in the columns, leave the first one blank. Under it, you can write the metrics or the indicators that you will use. In the second row, you can have Value. The next four columns can have the Weight, Max, Relative Performance and Absolute Performance. Make sure that the sum in the Weight column must be equal to 1. The Value column tells you about the current value of the indicator while the Max is the highest possible value. The Relative Performance is the actual progress of the KPIs and the Absolute Performance is the weighted progress.
When you create balanced scorecard in Excel, you do not have to worry about the calculations that you have to make. You can enter formulas there easily. For instance, if you need to get the relative Performance, you can divide the number in the Max column by the number in Value.