Balanced Scorecard Step-by-Step Video Tutorial by Simple Sheets - YouTube

hi guys and welcome to the video  on the explanation of the balanced  

scorecard now the balance scorecard is a great  tool to track your company's goals and really see  

how you're performing in terms of the percentage  achievement of the goals that you've set for  

yourself what i want to do in this video is walk  you through the individual customization steps to  

make sure that you can tailor this template to  your specific needs now this template actually  

comes with a pre-filled data set and what what i  mean by that is that we're looking at a company  

that is trying to measure its operational  performance first of all it's defining four  

overall categories transportation warehousing  inventory management and order processing  

within each of these overarching categories we  have strategic goals that we previously defined  

now let's take the first one for example we  want to increase customer satisfaction the  

way we measure this is we want to measure the  percentage of the damaged goods delivered we  

also define the unit of measurement and these  are all inputs that you are free to change  

what we've also decided to do is we assign  individual weights both to the overall  

category so let's say transportation in  terms of import importance for us is 25  

and to each of the strategic goals we've also  assigned individual weights now these individual  

weights always need to add up to 100 whilst the  overall categories also need to add up to 100  

you have a check at the bottom to make sure that  these numbers tie in to 100 so once we've defined  

these columns and we've assigned weights  units of measurement strategic goals and the  

measurement as such we have a system that assigns  points based on the performance so let's say  

if the percentage of damage goods delivered is  four percent that would give us 50 points it's  

not necessarily what we aim for but let's say this  is like the rock bottom of acceptable performance  

if we want to perform really well we get 100  points and then we design the individual targets  

to both of these points now once we're in  the course of operations we can then track  

the actual performance and this  can be entered here in column k  

based on this we receive a score now the  score is basically just an individual  

score that we receive based on the defined targets  here in i and j compared against the actuals so  

let's take this first example our actual is two  percent now this directly corresponds to the 100  

value that we wanted to achieve and therefore our  score is 100 but if this changes to let's say 5  

then you see the score that we receive  is only 25. and obviously if this is four  

percent meaning we just comply with the 50 over  here then of course my score changes as well  

ultimately what you also want to look at is the  fulfillment let me quickly change this back to two  

percent now the fulfillment basically measures the  overall score and multiplies it with the weight  

that we assigned to this individual activity since  this activity receives 30 in terms of importance  

we get a fulfillment score of 30. now this is  where you see that it's important that these  

numbers add up to 100 because only then we'll  be able to get a weighted score that complies  

with the overall transportation importance for  us so in terms of customization we've already  

talked about changing these individual  categories you need to make sure that  

the cell formats here are also changed so in the  first two examples we're looking at percentages  

but already the third strategic goal which is  a reduction in costs we're actually talking  

about an average transportation cost per order  measured in euros so if you want to change that  

you of course need to change these values to  numeric values and not percentages it's only  

up to you you can just freely change these cell  formats and it'll be translated accordingly now  

what if you wanted to remove a one of one of these  categories well you can just go in here and delete  

the row that's it but now you have one problem you  need to make sure that these individual categories  

add up to 100 so you may want to change these  weights so that this total adds up to 100 again  

let me quickly bring that back in and i also want  to show you how you can add another strategic goal  

it's basically in the same fashion as deleting it  you just select the row enter a new row in here  

and what you can then do is just add the  strategic goal add the measurement unit  

of measurement and all the other things here and  then what you need to do is drag down this formula

drag down the fulfillment score and now i'm just  gonna make something up we're just gonna say that  

this is 10 this is 35 and let's say we get just  these numbers these are just arbitrary values  

now you see that overall this adds up to 100 so  this is all fine and whatever we've defined here  

you know this is free to change now one last  thing i want to show you is if you open up the  

grouping over here you see that there's one piece  that updates the numbers basically it just takes  

the first number over here and it adds a one  now this is just to make your life a bit easier  

that these numbers over here if you drag  this down will then translate accordingly

into the right number over here see what i did  i just drag this formula down to the newly added  

row and then i just extend it to the other rows  within my data set right and this is how when i  

pull down these numbers it's just a formula it  updates the numeration okay so this is it for the  

explanation on the dashboard for the balanced  scorecard i hope that you will be using this  

template because it really gives you a great and  simple overview of how your company is performing