O5.002 (Processes Under Control) CREATING YOUR BALANCED SCORECARD - WILLIAM EASTMAN

One of two building blocks of your operational structure. Given you are a startup or a very young company there are no excess resources waiting to be used.

Whether we are measuring time, money, materials, etc., you are operating in a constrained environment. Getting this right will allow you to get the maximum mileage from every dollar - pound - euro spent.

INTRODUCTION
The following list is generic and intended to stimulate your thinking. Our recommendation is to start here and further refine the actual measures over time by starting with a best guess.

OBJECTIVES - THE WHY
A quick reminder for anyone unfamiliar with our methods - profitability is an effect of other things, not a cause. Our approach to a Balanced Scorecard is just that - what must happen for profit to be the end result?

F = (O + C + P)E

Financial Performance is the result of how well the Entrepreneur/Owner/Executive leads and manages Operations, Customer acquisition and retention, and has People invested in the future of the business.

Here is how the Balanced Scorecards converts into our weekly programming:

• Finance Monday: Employee Capitalism
• Operations Tuesday: Processes Under Control
• Customer Wednesday: Inside The Customer
• People Thursday: People In The Game
• Owner Friday: ReIMAGINING The Business

WHAT DO YOU NEED TO KNOW

1. Financial
   1. Revenue: The amount of money a company collects based on selling its offer.
   2. Earnings: The amount of money the company keeps after all expenses, taxes, etc., have been paid.
   3. Net Investment: The amount of the money the company retains for reinvestment in improvements and growth.​
2. Operations
   1. Scheduling: Scheduling work over a period time that ensures an even burden on company resources that maximizes resources.
   2. Efficiency: Organizing work per job or project that maximizes the efficient use of resources (equipment, materials, people).
   3. Waste: Eliminating defects at its source by the people doing the work.
3. Customers
   1. Marketing: Finding potential customers and converting them into qualified leads.
   2. Sales: Converting qualified leads into the sales funnel into closed sales.
   3. Service: Transforming satisfaction into enthusiasm for the company and offer, and grow the share of budget.
4. People
   1. Leadership: Staying connected to the work and model the behaviors that that are in the best interest of the company.
   2. Teamwork: People in groups work together to produce more than individuals working separately.
   3. Mastery: Individuals fully competent for the responsibilities of their job.
5. Executive
   1. Focus: CONCEPTUAL skills to spot right opportunities and stay disciplined in a multitasking environment until results are achieved.
   2. Leverage: TECHNICAL skills to maximize impact with minimal investment especially given an environment of scarce resources.
   3. Delegation: PEOPLE skills to develop talent by refusing to do the work of others.

WHAT DO YOU NEED TO DO
"The World of Business at Your Fingertips" 

1. Follow the Processes Under Control Series all season.​
2. Join our private Facebook Group and go way beyond what is possible on radio
3. Get your business growth news everyday from IBGR.News​
4. DOWNLOAD the IBGR Growth App
5. RESEARCH anything related to Starting, growing, or Exiting a business on the IBGR Network