What does the tool measure?
An internal management tool, the Social Enterprises Balanced Scorecard was developed by Social Enterprise London as a version of the Balanced Scorecard and aims to assist social enterprises to examine their strategies and desired outcomes (goals), which can be tracked over time. As part of examining their overall strategy, organisations examine the social elements of their activities and addition to financial aspects/sustainability.
Who can use the tool?
Social Enterprises, of differing sizes, can use the Social Enterprises Balance Scorecard. It can also be used by organisations going through a stage of transition.
How does the tool/approach work?
A visual ‘strategy map’ is created and examines what the organisation is looking to achieve and narrowing down a set of goals, to between two and four in total as the top level of the strategy map. The strategy map can be used to demonstrate the overall story and set targets. The tool does require some basic knowledge (e.g. learning terms), staff time and time set aside to implement, however the map can be helpful for promoting discussion about the organisations objectives, both to internal and external audiences.
By using the Social Enterprise Balanced Scorecard, social enterprises can manage change within their organisation and progressing with activities in order to reach their end goals.
Four ‘perspectives’ are examined in relation to achieving an organisation’s goals:
- Financial objectives for earning and using resources
- Key stakeholder groups and their perspective on their opinion of overall organisation
- Internal processes that are important to achieve stakeholder objectives
- Skills that should be ascertained/improved in order to carry out internal processes effectively
How to get started and further information:
A pilot study used 12 UK organisations in order to test the balance scorecard. This study was used in order to ascertain a way to measure an organisation’s activities and the best method out of a range of measurement tools. The pilot study of the Social Enterprises Balanced Scorecard, by Ali. B Somers can be downloaded from the side panel of this page.
For further information on the Social Enterprise Balanced Scorecard, please see the Social Enterprise London site: http://www.sel.org.uk/Balanced-scorecard/