What does the balanced scorecard contribute?
The balanced scorecard helps your organisation achieve sustained success. With the help of our strategic consultants, the scorecard provides you with:
What rules can be followed with the scorecard?
The scorecard (or “balanced scorecard”, BSC). Many integrated management system standards recommend or allow its use as a monitoring and improvement tool. Of particular note are:
- ISO 9001 (Quality and continuous improvement) in the monitoring of performance indicators (clause 9.1) and the analysis of “quality objectives” (clause 6.2).
- ISO 14001 (environmental management and sustainability) in the monitoring of “environmental objectives and targets” and the control of “significant indicators” and environmental performance (clause 9.1).
- EMAS (environmental management and sustainability). Requires “environmental indicators” and their annual evolution. It is also useful for summarising in the “Environmental Statement”.
- ISO 50001 (Energy). The CMI facilitates the monitoring of “energy performance indicators” and the control of energy improvements.
- ISO 45001 (Occupational Health and Safety). For monitoring “safety indicators” and evaluating “preventive actions” and system performance.
- IQNet SR10 and SGE21 from Forética (Social Responsibility Management System). Integrates the three ESG pillars of sustainability. Requires the establishment of “indicators and monitoring reports” on social responsibility performance. The scorecard allows you to group and track all strategic objectives and their progress.
- GRI (Global Reporting Initiative) sustainability report. Requires the collection of “key indicators by material topic” in accordance with GRI standards. The dashboard helps to manage the progress of the selected GRI indicators.
- CSRD (Corporate Sustainability Reporting Directive) report. It requires many companies to report according to “ESRS“. The dashboard with structured sustainability indicators is useful for “preparing and monitoring data from management”.
- Ecovadis, SMETA and BCorp also require specific sustainability indicators, which can be easily integrated into dashboards.
- National Security Scheme (ENS). Although not expressly required, it can be used to track security or control effectiveness indicators.
- ISO/IEC 27001 (Information Security). Linked to the monitoring of ISMS effectiveness indicators and risk management and control measures.
Tool for planning and management
The balanced scorecard facilitates the analysis of the results of different processes or departments using uniform criteria. The balanced scorecard combines short-term control with vision and strategy.
The strategic scorecard considers finances, customers, processes, training and growth. In the case of a sustainability scorecard, it can be economic (sustainable turnover, innovation, sustainability and CSR, etc.); social responsibility (employment, equality, training, safety, social impact, etc.); environmental (emissions, waste, energy, climate targets, etc.); governance/ethics (compliance, ESG risks, transparency, policies, etc.).
Focuses the company on customers and strategic results
It helps to pursue objectives and the value proposition in order to achieve customer satisfaction and fulfilment of the business plan. The indicators in the balanced scorecard make it easier to identify improvement actions in the event of deviations.
Help engage staff
The Balanced Scorecard helps to communicate and share results. Thanks to this, employees understand and impart the objectives of the integrated management system, achieving high levels of commitment, motivation, communication and success orientation.
How we implemented the balanced scorecard
As strategic consultants in management systems, we follow these steps to design and implement a useful and agile scorecard:
- Process review and analysis. The process analysis will identify:
- Existing documentation linked to your ISO certificate and management system processes.
- This involves developing and agreeing on the process map. It is linked to the process map of an ISO certificate.
- Improvements to align the organisation with the strategy, thereby increasing effectiveness and efficiency.
- Tools to implement process-based management. This enables efficient and effective teamwork.
- Analysis of existing information in order to determine which indicators we can achieve and which provide valuable information. The axes on which the BSC is structured are established.
- Analysis of results to ensure that each of the indicators provides us with value. This involves determining the reference level for each indicator and, where appropriate, the target value. With the analysis, it is easy to:
- Follow the processes, strategy and business plan, advancing trends and facilitating management decision-making.
- Identify improvement actions to achieve customer satisfaction, with a customer focus compatible with the results.
- Prioritise improvement objectives and actions, with their investments. They must be aligned with the strategy and strategic plan.
- Continuous improvement of the scorecard, based on its monitoring through our ISO outsourcing service. It seeks to add value to your organisation, linked to the continuous improvement of your integrated management system.
Balanced Scorecard FAQs
What is a balanced scorecard?
A balanced scorecard is a management tool that collects and displays key performance indicators (KPIs) for each process or department in a visual and structured way, to facilitate the monitoring of objectives and decision-making.
It consists of KPIs or key performance indicators that help to monitor the strategy and business plan.
The scorecard allows performance to be monitored, deviations to be detected, decision-making to be improved and activity to be aligned with strategy.
What is the relationship between the scorecard and sustainability and social responsibility?
The scorecard allows environmental, social and governance indicators (ESG criteria) to be integrated into the organisation’s strategic management, facilitating the monitoring of commitments to sustainability and social responsibility.
The general scorecard integrates all key aspects of the organisation (finance, operations, sales, people, sustainability, etc.). The sustainability scorecard focuses specifically on environmental, social and governance indicators.
Why is it important to include sustainability indicators in the scorecard?
Including indicators in the sustainability scorecard allows you to make informed decisions, demonstrate commitment to stakeholders, respond to regulations or standards (ISO 14001, EMAS, ISO 45001, IQNet SR10, GRI, Ecovadis, etc.) and improve the organisation’s reputation and competitiveness.
These indicators are mandatory if you are certified to standards such as ISO 14001, IQNet SR10 or EMAS, or if there are voluntary commitments (e.g. GRI sustainability reports or Ecovadis scores to achieve gold or platinum status).
What type of indicators are included in the scorecard?
The types of indicators are:
- Strategic: linked to the overall objectives of the strategic plan.
- Operational: related to daily activities (production, sales, quality, etc.). These can be linked to ISO 9001 certification.
- Environmental: energy consumption, CO₂ emissions, waste generation, water consumption, etc., in accordance with your ISO 14001, EMAS, ISO 50001, GHG Protocol or ISO 14064 certification.
- Social: training, gender equality, working environment, health and safety, corporate volunteering, etc.
- Financial: turnover, margin, profitability, etc.
- Governance: regulatory compliance, code of conduct, transparency, ethics, responsible purchasing, etc.
The indicators must be specific, measurable, achievable, relevant and time-bound (SMART).
What happens if an indicator does not meet the target?
The cause can be analysed and, if necessary, corrective or improvement action can be defined. The objective can also be revised if the context has changed or it is no longer realistic.
Are the indicators in the scorecard audited?
Yes, they are part of the ISO-certified management system and are audited as part of the internal ISO audit and the ISO certification audit. They may also be reviewed by customers, investors or external assessors (such as Ecovadis or SMETA).
Each indicator can be linked to one or more SDGs. This link also facilitates external communication and sustainability reporting.
How often are the indicators reviewed?
The scorecard is reviewed at a frequency that may vary depending on the type of indicators. It is usually monthly, quarterly or annually. This frequency must be specified in the scorecard itself.
Each department head is usually assigned the task of collecting and validating the indicators that correspond to them. There may be a person or team responsible for consolidating all the information (e.g. quality, environmental management, safety, social responsibility, business plan, etc.).
The review is carried out by senior management and/or the management team.
Can the dashboard be shared with all staff?
The BSC can be shared with the rest of the staff depending on the degree of transparency of the company. In general, indicators relevant to each team can be shared, avoiding sensitive data.
What are the benefits of integrating sustainability into the scorecard?
The benefits of integrating sustainability into the scorecard are:
- Improved decision-making, in line with strategy.
- Strengthened commitment to corporate values.
- Increased trust and satisfaction among customers, employees and investors.
- Facilitated regulatory compliance.
- Prepared the company for audits, tenders and ESG rankings.