Steps included in the Phase of Testing the Results of BSC Implementation - Slide 3

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As stated earlier, testing phase of BSC implementation holds its unique position in the overall BSC concept. Again as applicable for other processes, it should too be instigated with a focused approach to eventually complete it successfully. The Testing phase encompasses of a 3-step process to be followed by the businesses as mentioned below as mentioned below:

• Preparations prior to initiating the testing phase. The hypotheses underlying the BSC have to be explored to the maximum extent possible. Better formulation and implementation of strategy is achieved by proceeding with this step.
• Determining the results of parameters of Balanced Scorecard. This step of the result testing phase of BSC implementation aimed at calculating the actual results of the company and comparing it with the values of parameters. Divergence in the results are found out which finally enables the company to know what its current position is and where it wants to be in the future. Devising the ways to correct the performance of the BSC is also done in this step.

• Updating the core elements of Balanced Scorecard. The core elements of BSC comprises of the objectives, strategies, measures and targets. Time to time update is what is invariably required for efficient usage of the balanced scorecard. Changes in the business environment may call for updating the core elements to help the company in staying focus towards the achievement of end goals. Updating is also required when the company requires improving the understanding of its employees regarding the BSC concept.