How to make a Balanced Scorecard for the Board of Directors
It is important that the board of directors of the company has systematized information that allows it to make sound decisions for the good governance of the company. It is the responsibility of the Council to acquire useful information for decision making, defining the needs and proposing improvements and formats of the same. On the other hand, the management team of the company has the responsibility to provide this information to the Board. For this, it is important to create a Control Panel that allows analyzing the key metrics of the company.
The scorecard that the board of directors will have will be concise but with possibilities to obtain cascading and interrelated information. Working on the TAM concept (Annual Mobile Trend).
The control panel will be presented with information on all aspects of the company: Not only financial economic information, but also commercial, market, organization-structure, industrial, etc. The objective is to obtain a clear and precise idea of the situation and be able to analyze the deviations that occur with respect to the budget.
It must incorporate the indicators (designed by the Board) to control compliance with the strategic lines marked. It must also include qualitative information about markets, competitors, trends, etc ...
Constant periodicity in obtaining information. However, the channels must always be open. That is, the management team should be available to the Board of Directors for any clarification.
The scorecard will be reviewed by the board of directors Frequency of meetings depending on the type of business and the situation of the company, the number of meetings to be carried out varies. However, the average would be between 6 and 12 annual council meetings. However, the Board of Directors must be ready for extraordinary meetings when the situation requires it.
- It is important to take care of the privacy of the dashboard data of the company, so it is not advisable to send it by email.