A good method to evaluate corporate performance, regardless of the company`s segment of operation, no longer relies only on accounting and financial indicators. These are no longer the only references to inquire about the health of the institution.

Ever since these methods started being considered obsolete, a new model that takes into account the short and long-term objectives, financial and non-financial measures, performance indicators, and internal and external perspectives of corporate performance has effectively contributed to the corporate management.

The Balanced Scorecard (BSC) is an organizational tool used to manage key processes such as the establishment of individual and collective goals, compensation, allocation of funds, planning and budgeting, feedback and strategic learning, something like a tool equivalent to an ERP system.

With the use of BSC, management is only deemed effective if the four sets of indicators are sufficiently “balanced”, that is, applied in order to enable the actual and balanced development of the company.

If you still have any questions of whether you need to use BSC in your company, below are the main reasons for making use of this tool:

1 – It increases the company’s focus on strategy;
2 - Focused on strategy, the staff begins to identify the processes to be optimized;
3 - The BSC gives priority to projects and investments based on the company’s reality;
4 - The method mobilizes all employees to act with creativity;
5 – It allows positive changes in the performance, motivation and behavior of professionals, because everyone is involved;
6 – It promotes a clear communication between leaders and their team, which is an essential practice;
7 – It stimulates collaboration among teams;
8 - Strengthening the company’s vision, mission and objectives;
9 – It allows more structured actions;
10 – It reduces the time spent with activities that are not in line with the strategy;