Five reasons why SMBs benefit immensely from scorecards

Managers of small and medium size businesses (SMBs) may be under the impression that strategic planning and scorecards are only for large corporations, this would be completely untrue. As a matter of fact, a scorecard system is ideal for SMBs. Here is why:

1. Scorecards require little training and simple tools. Their simplicity and easy implementation are seamless for SMBs where resources are often scarce, time is priceless and managers wear multiple hats.
2. SMBs need to measure their effort and focus only on opportunities that will take them closer to their business goals. SMBs are often rich of ideas because of the intimacy they have with their niche market. The temptation to chase all opportunities might be difficult to resist but often result in dispersion. Scorecards focus SMBs efforts.
3. SMBs are a lot less resilient to management errors than larger settings. Implementing a scorecard systems minimize errors while keeping management cost minimal.
4. SMBs are strong when they are reactive; they need a management system that permits near-real time analysis and fast strategy changes when needed. Yet at the same time SMBs need to communicate change to staff quickly and in the least onerous way. Scorecards are integrated and combine strategy, communication and change management in a single tool.
5. Scorecards, such as the balanced scorecards, have been researched for many years; they come with a knowledge base. When implementing Scorecards, SMBs do not need to reinvent the wheel , they get a head-start on basic practices and can focus on their differentiators and competitive advantages.