Balanced Scorecard and Business model canvas are both enterprise analysis technique. Both techniques useful to BA to improve organizational performance. But their applications differ. Both can be used along with Key Performance indicators to monitor and improve organizational performance. Let’s understand both the technique in detail.
Balance Scorecard is a strategic planning and management tool to measure org. performance beyond traditional financial measures aligned to organization’s vision and strategy. Key dimensions for Balance Score card are
- Learning and growth dimension – Employee training and learning, product and service innovation, and culture.
- Business process dimension – How well the enterprise is operating and if its products meet customer needs.
- Customer dimension – Customer focus, satisfaction, and delivery of value.
- Financial dimension – Profitability, revenue growth and added economic value.
Business model canvas
Business model canvas comprises of 9 building blocks describing how an organization delivers value. The 9 building blocks are
- Key partnerships
- Key activities
- Key resources
- Value proposition
- Customer relationships
- Customer segments
- Cost structure
- Revenue streams
When to use Balance Score Card
Balance scorecards are used to monitor organizational performance over time. If one observes a statistical dip in the score, the organization must initiate change to arrest the performance decline.
When to use Business model canvas
Business model canvas can be used as a diagnostic tool as a lens into the current state of business, especially wrt relative amounts of energy, time, and resources currently invested in various areas. If any of the areas of the model is underperforming, the organization must initiate change to improve the same.
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I am a practicing business analyst, trainer, author and blogger.
I have helped more than 400 business analysts to achieve their dream careers by getting them certified in international BA certifications.
I have authored 10+ books on business analysis and 200+ blogs.
I am a certified business analyst from IIBA® Canada and IREB® Germany.