Balanced Score Card

Why the connection between audits and a Balanced Scorecard is a benefit.

The Balanced Scorecard

The Balanced Scorecard was developed by Robert S. Kapplan and David P. Norton in the 1990s at the Harvard Business School in the USA. The aim of the development was a new management system for organisations based on key figures. A weakness of companies managed on the basis of financial ratios is to be compensated for with the help of the BSC. The BSC helps to achieve this by introducing additional perspectives that are regarded as equally important for the development of a company, thus creating a balanced system of key figures.

The advantages are described by the inventors as follows:

  • Vision and strategy are communicated and clarified through the BSC.
  • Vision and strategy are linked to qualitative and quantitative objectives
  • Measurability of strategic goal achievement

The different perspectives contribute to a better description of the company situation as well as processes
Organisational learning is initiated or supported
The BSC is understood as a dynamic learning and communication system, with a permanent link between the operational and strategic levels. Key figures should contribute to organisational optimisation by linking the strategy.

Why

In today’s fast-paced business world, audits provide the most important information you need to make decisions. Today, some audits are conducted and documented on mobile devices without pen and paper – this is where digitalisation lives.

However, it can be a challenge to quickly turn the results into insights. What they need to do this is a lot of time and data analysts, which is slow and expensive.  Who wouldn’t prefer to know the results immediately, preferably in an understandable form?

To close this gap, we use the Balanced Scorecard.

Combining internal audits with a scientifically based methodology for corporate management is our goal behind the use of the Balanced Scorecard. Our years of experience have shown us that the data generated in audits often remains unused. These important insights and findings into one’s own company thus remain hidden. By combining this data with the perspectives of the Balanced Scorecard, our clients can obtain direct added value from the audit data. Our software translates the requirements into the perspectives of the corporate strategy.

Paragon, through a smart dashboard combined with a cloud, helps to quickly capture perspectives and present important key information, at any time and from anywhere in the world.

We follow a simple principle:

“Who wants to know what?

Through this principle, we enable assistance in providing information that is relevant to the target group.

  • Managers receive a clear management dashboard 
  • Auditors receive all important audit-related information
  • Process owners receive targeted information as well as a task overview.


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