What is the Balanced Scorecard?

The balanced scorecard (BSC) is a strategic planning and management tool that helps organisations:

  • Communicate what they are trying to accomplish
  • Align day-to-day work with the Company’s strategy
  • Measure and monitor progress towards strategic targets
  • Prioritise projects

A balanced scorecard looks at the organisation from four different perspectives. At Almi Tankers, these perspectives, or Pillars as we call them, focus on a different side of the company creating a balanced view of the organisation; namely, our People, Internal Processes, Charterer Satisfaction, Financial Sustainability & Shipowner Satisfaction.

One of the most powerful elements in the BSC methodology is the use of strategy mapping. A strategy map is a simple graphic that shows a logical, cause-and-effect connection between strategic objectives (shown as ovals on the map).

By investing in the development of our people, they become more productive and effective, in turn they are able to improve our internal processes and as a result we provide higher quality services to our charterers strengthen our brand name and ensure the sustainability of our business and the satisfaction of the shipowners.

The Story of the BSC

The concept of the Balanced Scorecard was first introduced by Robert S. Kaplan and David P. Norton in a 1992 Harvard Business Review article. They had realised that post-industrial companies could not grow and evolve using the annual budget and its reactive cost-control focus as their sole strategic planning tool. A more balanced and proactive approach across four strategic perspectives was required to deliver the expected results. The paper introduced the idea of investing in the development of an organisation’s human capital and the improvement of internal business processes in order to satisfy customers’ needs and hence achieve one’s financial goals.