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Balanced scorecard: optimize internal processes

The balanced scorecard is a tool that can help you make the most out of the resources of your company to optimize internal processes.

Few Weeks ago we introduced the BSC and later we focused in more detail on the importance of relationships with customers for a company. Today we will instead see how, among others processes for optimize production and product innovation (ie those that your customers don't see), BSC is crucial for your business.

processi interni bsc

The most important aspect of this perspective is being able to create the value that customers expect from our products (not only in a functional sense, but also taking into account all the services that revolve around the product) . More value we create, the more we can exceed their expectations, and to do that we must start examining different variables from the ground up:

  • what are the internal processes that are critical issues in our business?
  • How they can be fixed?
  • What activities we need to complete a certain business function?
  • People who deal with a certain process are the right ones, or should another department deal with it?
  • Are there any activities that can be automated?
  • Which are the most complex tasks that slow down the completion of a process?
  • How can they be speeded up?

Every time that we want to create a new product, innovate an existing one, or decrease time-to-market we have to ask ourselves these questions, identifying in first place our referring market, the development process of our product and the way we put it on the market, and last but not least, our modalities of customer support.

Once completed this step, we have to find out the best indicators that allow us to get a measurement of our activities: this is the most complicated moment, but when you'll have identified them it'll be a lot easier.

They'll be different for every activity and for every process, so let's take a simple example: if we wouldn't have as goal to gain more customers improving our website (that means innovating an existing service), some possible KPIs to keep an eye on could be the number of visit to the website together with the bounce frequency (ie the percentage of visitors that landed on a page on our website and then leaves immediately, without visiting others) and the dwell time on a page.

In this example we're looking at just one of the possible ways to optimizing our internal processes. The BSC is important because it allows us to group all actions related to our business and to categorize them (perfectly organizing the welter of information we have available), allowing us to understand how healthy is our company under various points of view by continuously monitoring.

Is your company well structured regarding internal processes? What are the performance indicators most significant that allow you to understand how's your activity going on the base of this particular perspective?

Thanks for reading the article.

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