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Astrategy map will be used as the foundation for the development of a Balanced Scorecard (BSC). To deliver the value you want to create, companies need a control or measurement system. This is where the Balanced Scorecard is born.
The Balanced Scorecard has specifically been developed to monitor the extent of strategy implementation. The Balanced Scorecard contains indicators that reflect performance in the different aspects of the organizations strategy. Concretely, this means that the Balanced Scorecard is populated with financial performance measures, as well as with performance measures that reflect the customer value proposition, the extent of value creation in internal processes, and the investment effort in human capital and innovation. Furthermore, the Balanced Scorecard contains actual performance data, as well as targets.
The ultimate goal of target setting is to close the value gap between the "AS IS" and the "TO BE" situation. The challenge is to makeworkers intrinsically motivated to achieve these targets. Giving people the confidence that they are able to realize the targets supports their intrinsic motivation. Therefore, it is both a top-down and bottom-up process. Targets in the Balanced Scorecard are meant to motivate employees to accept their responsibilities and realize their performance objectives.
Finally, the Balanced Scorecard supports taking strategic initiatives. The intention of a strategic initiative is to closethe gap between actual and targeted performance. Organizations usually do not have a shortage of strategic initiatives. The difficulty is rather to select and prioritize them. Since the Balanced Scorecard provides fact-based data about strategic performance, it guides the selection and prioritization of strategic initiatives. The essence is doing the right things right.