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The balanced Scorecard is one of the most popularly used strategy performance management tools currently being used in the corporate world is the Balanced Scorecard. Primarily, it is a tool used to measure the performance of individuals, projects or a whole business entity. For instance, organizations tend to make use of key performance indicators (KPIs), which are used in order to estimate the amount of progress made towards a project, or the achievement of a particular goal. In order to choose the right KPIs for a business, a very common method is to apply a framework management model such as a balanced scorecard.
Balanced Scorecard for Individuals
The Balanced Scorecard is used quite commonly by companies, while it can also be used in order to set targets for personal growth by individuals as well. A company's balanced scorecard will generally take in to consideration four perspectives: Learning and Growth, Internal business processes, customer satisfaction and financial progress.
Then, the primary vision of the company is noted down, and a strategy is which enlists the objectives, the measures that need to be taken, the initiatives as well as the targets that the company wishes to achieve. However, these vary depending upon the type of organization. Then, they are filled out, after which KPIs are created in order to measure the performance of the company until these targets are achieved.
An individual on the other hand, might use a balanced scorecard in a different manner. For instance, if you wish to increase your savings account, your financial measures need to be set accordingly, and KPIs will be set that will determine the amount of money that you must save on a daily basis. This is just a simple example however, so the KPIs can vary depending upon the spectrum.
On the other hand, strategy maps in companies also vary. For instance, companies will enlist their personal targets, on various fiscal and non- fiscal topics, while an individual will focus on slightly different objectives. For instance, whereas one of the most common items listed on a strategy map for companies is to maximize profit, an individual will attempt to increase his/ her own savings. And as a result, will create a strategy map according to his aims.
By having a Balanced Scorecard, a business is able to ascertain its key performance indicators, as well as the objectives that it needs to achieve, and how to get to it. This also promotes effective communication between the executive staff and the workers, since the objective is clear for all employees of the company, while the means to achieve that objective are also disclosed.
For an individual, having a balanced scorecard and measuring his/ her KPIs is a great idea since it gives them the motivation to move forward towards their goal, and it also helps them in analyzing their own performance till date.
Measuring personal growth with the help of specific key performance indicators is a great idea for people who actually want to see a change in themselves.
Why is it that most people find it so difficult to register personal growth? The answer lies in the fact that it generally takes time for the results to show, and most people lose motivation quite early. However, by setting your own KPIs and creating a Balance Scorecard in order to track your success, it will become a lot easier for you to estimate the amount of effort that you have input as well as the results that you received.
Ready-to-use KPIs for personal growth
Here are 5 key performance indicators that will help you in the long run:
1. Physical Exercise: One of the best KPIs that can be used for personal growth is the amount of exercise that you do on a daily basis. Exercising is very important for self esteem, and not only does it make you look good, but it also helps you in feeling fresh. Make sure you regularly estimate the amount of physical exercise that you do on a daily basis. An increase in physical activity can only mean good things in the future.
2. Social interactions: For an individual, keeping track of social interactions is very important. Not only do social interactions help in keeping you in the know, but they also help you in boosting up your confidence and feeling better about yourself. Online conversations, face to face conversations and phone calls/ messages are all included in social interactions. In order to measure personal growth, social interactions can prove to be a very useful KPI.
3. Weight: Your weight shall prove to be the most important KPI in terms of personal development. If you want to make sure that you keep on improving yourself, maintaining a decent weight is very important. Keep a check on this.
4. Job satisfaction: How satisfied are you with the work you do? Job satisfaction acts as a very important KPI, so always measure your own satisfaction. If you have begun to feel disgruntled at your job, it would be a wise idea to start searching for another job.
5. Food: Are you eating healthy food? Are you eating a lot of junk food? Both of these questions are integral to personal development, and by using the food you eat as a KPI, not only will you be able to maintain the required nutrition for your body, but you will also begin to feel quite healthy.
For example, let's presume that you are looking to lose weight, and have decided to use a balanced scorecard. First of all, you will list down the objectives, as well as the factors that lead to weight loss. For instance, your KPIs will be food, weight and physical exercise, and you will continually measure them in order to track down your progress.
Without a Balanced Scorecard, you will not have any idea about the amount of efforts that you need to put in to your weight loss regime, as well as the things that you need to keep in mind. However, the balanced scorecard can be maintained and updated accordingly with the passage of time, proportionately to your efforts to weight loss.
The key performance indicators here will help you in deciding whether you are on the right track or not.
There are numerous other benefits of making use of a Balanced Scorecard. For instance, it can be used as secondary research later on, allowing an individual to get an idea of the results that they managed to achieve earlier. Individuals who make use of a Balanced Scorecard also get a motivational increase, allowing them to perform better in order to get quicker results.
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