Balanced Scorecard Solution

Dear Subscriber,

Here is the first of twelve articles that I will be writing over the coming months describing how to create a Balanced Scorecard for a small business. This is a natural follow-up to my piece in the last newsletter regarding why small businesses should spend time creating a Balanced Scorecard model for their companies. Time invested in this activity will pay off!

This article also contains directions for creating and documenting the model using the
Axsellit Strategy Mapper tool.

stay focused!

All the best,
Paul Bergquist

PS: We still have a few places available for our upcoming certification training in London (to be held October 10-11, 2005). However, since seating is limited, you should contact me as soon as possible at xxx if you would like to attend.


	Balanced Scorecard for Small Businesses: What's your true vision? by Paul Bergquist


	Imagine closing your eyes and dreaming about your future for just a few minutes. What's it going to be like five to ten years down the road? What's happened to your company? What's happened to you? Are you teeing off on a luxury golf course in the Caribbean while your spouse has taken your yacht out to catch some big fish? Or are you snuggling up in a cozy mountain cabin somewhere in the wilderness while your private plane sits in the nearest open field? Whatever it is, let's call it your personal vision. It is what you want your future to hold. Now.take this exercise one step further and imagine exactly what needs to happen with your company to make that dream come true. Great! You have just constructed your company's vision.much the same way that Bill Gates and friends did when they envisioned "a computer with a Microsoft operating system in every home." While there can be a tremendous amount of energy and direction in a carefully drafted vision statement, don't just create a vision because everyone needs to have one. That defeats the purpose of the exercise. Create visions for yourself and your company that you truly want to experience. Make them tangible and realistic even if they will be difficult to achieve. The Destination Metrics Now, you know where you want to go. The next step is to determine the important numbers to get you there, such as: - How much revenue do you need? - How many products should be in your portfolio? -How many subscribers or customers are necessary? The answers to the preceding questions are called your Destination Metrics. They are the levels your company needs to reach over the next five to ten years in order to make your dream come true. Your dream is now no longer just a dream-it has been transformed into a tangible business target!

	More will follow next month...

	Strategy Mapper Directions

	To begin creating a complete plan to achieve your dream, open up the Strategy Mapper software and follow these instructions: Right-click on "Projects" and select "Create New Project." Enter your company's name (or an abbreviation for it) as the project name. Enter a short description of your company and its main business idea. Click "OK." Right-click your company name and select "New Organization." Enter the full legal name of your organization in the "Name" field. Enter a short version of your vision in the "Vision" field. Enter the most important destination metric in the "Goal" field. Click "OK." Right-click on your organization's name and select "New Model." Name the model "BSC version 1.0" and change the period field to "Month." Click "OK." Expand the model by clicking on the "+" in front of the model name. Right-click on "Model Objects" and select "Vision." Enter the shorter version of your vision statement in the "Name" field. Enter the complete vision statement in the "Description" field. If you want to express some thoughts on what your vision is not, enter these restrictions in the "What's Not" field. Click the "Keyword" fan and begin to enter your destination metrics. For example, if your goal is to achieve $15 million in sales, then type "sales" in the first Keyword slot and "$15 million" in the description below. Continue this process until all of your metrics have been entered and then click "OK."
	More will follow next month...

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