So here are two ready-to-use motivation ideas for any business:

Nothing Motivates like Results! There is no better way to motivate people than with great results achieved quickly.  If someone in your company implements the Balanced Scorecard and achieves great results, they will happily continue using this system—and they will spread the word about it to other departments.  So, implement the Balanced Scorecard first in departments or business units where it will be easier to create indicators, get feedback, and produce measurable results—for instances, sales and marketing.

and the second one is:

Organizational Incentives. You can also motivate your employees by offering them special, organizational benefits.  Perhaps your company has a process in place that allows employees to work remotely.  You could link this opportunity to the Balanced Scorecard.  For instance, announce that if an employee successfully migrates to the Balanced Scorecard within the next month, they will be allowed to work remotely from home.

You will learn more in the eTraining: Motivating for the Balanced Scorecard.

1. Evaluate the assets and liabilities: You must be following a business balance sheet and in such a situation you need to evaluate the liabilities and assets from the balance sheet. All this will include the amount of capital that has been already been used in the business, how much amount the business still owes to the creditors and also the amount that the debtors owe you. This way you can easily determine the value of the goodwill that your business organization has earned to date.
2. Analyze the cash flow: You must review the cash flow that has been accessed to operate and the financial activities. The effects of all these activities can simply be understood through the expenses and the income from the statement of the income. You may also compare the performance of the organization to check if the budgets and the forecasts are effective.
3. Compare the debtor and the creditor dues since the past: If you want to measure the credit history of your organization, you need to compare the creditor and the debtor values over the past. You must make sure that the debtors pay on time so that there are not many dues that can take a toll on your personal finances. There must be healthy cash circulation so as to better the business performance and you must also keep making the payments to your creditors.
4. Check the customer satisfaction level: You must check the satisfaction level of the consumers by checking all the complaints and the reviews of the customers and the end users. If you have enough consistency and you can deliver good quality performance, you can improve the reliability and this will measure your business performance in an exact way.

Therefore, if you’re interested in measuring your small business performance, make sure you follow the steps mentioned above. Based on the measurement, try to improve the performance and satisfy your consumers so that you can boost your returns and make your business flourish.

Author’s Bio: Martha Jackson loves to write financial articles and she is a contributory writer associated with the Debt Consolidation Care Community and has written several articles on debt consolidation, debt settlement and get out of debt for various financial websites. She holds her expertise in the Debt industry and has made significant contribution through her various articles. Please follow us here: http://www.facebook.com/debtconsolidationcare.

My task is business process design and business productivity analysis and reporting linked to annual outcomes

Patrick Baker, Director , Mindlogik , New Zealand

The list of process descriptors are informative but are basic in explanation as they basically cover 101 topics which are already understood by most business managers. The process should be an introduction with a n explanation of how this can be applied .

Learn more about Business Analysis Toolkit

• 16 Business Analysis Scorecards delivered as .BSC and Excel files, balanced scorecards for various areas of business analysis including KPIs for financial analysis, risk analysis, competitor analysis;
• Each scorecard includes 12-16 key performance indicators, in total 250 key performance indicators for Business Analysis.
• Download the evaluation version of the scorecard.

Inside Balanced Scorecards

The Business Analysis Method Toolkit includes 16 scorecards. The example below shows how the Leadership Balanced Scorecard looks like in BSC Designer Light. Download the evaluation version of the scorecard.

The example of the balanced scorecard and its indicators in the BSC Designer Light.

All scorecards in the Business Analysis Method Toolkit are delivered as .BSC and MS Excel files. Below is the example of how the Excel file looks like in the full version:

Leadership Balanced Scorecard after export to Excel

The list of Balanced Scorecards in Business Analysis Method Toolkit

Business Analysis

• Budgeting and Forecasting [16 key performance indicators].
• Business Strategy [16 key performance indicators].
• Marketing Research [17 key performance indicators].
• Business Mission and Vision [17 key performance indicators].

Competitor Analysis

• Competitor Analysis [21 key performance indicators].
• Benchmarking [14 key performance indicators].

Financial Analysis

• Financial Benchmarking Scorecard [18 key performance indicators].
• Financial Risks [17 key performance indicators].
• Financial Statement Analysis [14 key performance indicators].

HR Analysis

• Innovations Scorecard [11 key performance indicators].
• Leadership Scorecard [17 key performance indicators].
• Motivation Scorecard [17 key performance indicators].
• Work Productivity Scorecard [13 key performance indicators].

Risk Analysis

• Market Risk [12 key performance indicators].
• Operational Risk [14 key performance indicators].
• Risk Metrics [16 key performance indicators].

• BSC file is a native format of BSC Designer. These files can also be viewed and edited with freeware edition – BSC Designer light, which is included into the full version of the toolkit.
• BSC Designer Light is a freeware software for Windows.

SWOT Analysis Free Guide

There are several different methods currently used in the business world and one of the most popular strategic evaluation tools is the SWOT analysis. SWOT stands for strengths, weaknesses, opportunities, and threats.

• Download Business Analysis Toolkit Free Guide
• Check also the full version of the toolkit.

SWOT can be further classified in to internal and external factors. Strength and weaknesses belong to the internal factors, and the opportunities and strength are classified as external factors.

What is inside? 28 page SWOT Analysis Guide:

We discuss several business cases where SWOT has been used and will provide you with a detailed information how it have been helpful in the decision making process.

Finally, we will provide you with a detailed checklist and FAQ sections. By reviewing the information, professionals looking for the material on business analysis methods can get educated on the key aspects of SWOT.

• “SWOT Analysis” part addresses the definition of the SWOT analysis, and talks about the problems and situations that the method can be useful for. It is a short, but all inclusive summary of the method and its uses. It provides reader with focused information on the advantages and disadvantages of the method, informs on the key stakeholders of the SWOT analysis, and provides information on who uses the method the most. SWOT analysis: Introduction and use of the method in the business environment.
• “SWOT and balanced Scorecard” is a summary part that discusses the balanced scorecard as a tool for the business professionals, and provides a view of how SWOT and balanced scorecard can work together in order to achieve the strategic goals. It concentrates on the role SWOT plays in the balanced scorecard. It answers a question of how SWOT can assist in designing the BSC (balanced scorecard) and what are some of the measures and evaluations necessary in order to achieve the best results. It compares the scope and coverage of each method and presents them as a complementary to one another. Learn more about:  SWOT and Balanced Scorecard.
• Part “Alternative Methods to SWOT analysis” discusses some of the alternatives available today when it comes to the strategic planning tools and methods. It is a summary part that goes in to certain detail about three alternative methods: PEST, Porters Five Forces for Competitive Position, and SCORE. These are all methods that have been very popular through years and have earned positive evaluations from many prominent business professionals. As with all other methods, they have advantages and disadvantages that we will try to present as fairly as possible. Furthermore, we will discuss them in contrast with SWOT and try to give you an objective point of view on which is the best solution and in what case do they provide the best results.
• Part “Steps in Solving Problems Using Porter’s Five Forces” touches on one of the alternative methods to SWOT, and provides a step by step guide to what it means to solve the problem using Porter’s Five Forces. It is an all-inclusive and detailed part on the method, its applications and the advantages and disadvantages it offers in the decision making process. It goes in detail on every force described by the author and provides some examples and scenarios where the method might be useful.
• Part “Solving Problems Using the SWOT Analysis” talks about the method and its pattern of implementation in the business world. It provides 5 alternative scenarios where the method has been successfully used and has delivered the desired results. It is a sort of practical illustration of a theoretical concept. In this part we will try to show you how the real companies have used the method and what are the steps, factors and details that one needs to pay attention to when using SWOT. After reading this part, reader will have an idea about the method, the theory behind it, and how it can be helpful for the strategic planning purposes.
• Part “SWOT Analysis Conclusions” discusses and summarizes some of the key points made in the previous parts about the method. It offers more analytical rather than discussion tone, and provides readers with some prospective on the method, its advantages and disadvantages, and the opportunities other methods might offer. It mostly discusses the best scenarios when the SWOT delivers the highest results.
• Part “SWOT FAQ” talks about the method and the questions that some might have when first encountering it. Questions like, why use SWOT? Who are the key stakeholders, and what are the cases when the method is most effective? Also, one might be interested in who is the main user of the method is. All of these questions and more are addressed in the part.
• Part “SWOT Checklist” discusses some of the key aspects that one would need to use, in order to analyze the situation using the method. It give a user an idea about the factors that affect the method, about the key measures that need to be addressed and it touches on the results and their interpretation by the business professionals. It also addresses the topic of the key findings and most probable outcomes. In other words, it is a complete overview of the method and the factors that affect its results.

If you are even remotely familiar with a business world, you have certainly heard about the competitive environment, strategic planning and business analysis. There are several different methods currently used in the business world and one of the most popular strategic evaluation tools is the SWOT analysis. SWOT stands for strengths, weaknesses, opportunities, and threats.

SWOT can be further classified in to internal and external factors. Strength and weaknesses belong to the internal factors, and the opportunities and strength are classified as external factors.

Why use SWOT analysis you might ask? Well, it is a very useful and highly effective tool when planning for the strategic goals, when trying to analyze the environment the company operates in, and it is a good visual illustration of the challenges company faces. What is unique about SWOT is that it enables managers and executives to lists the key advantages and disadvantages of the company and matches them with the external factors that will influence the company’s performance in the short and the long run.

SWOT stands for strengths, weaknesses, opportunities, and threats.

To give you a better understanding of the method, let’s look at some of the examples of strength, weaknesses, opportunities and strength.

Strength

• Rights to intellectual property; patents.
• Strong brand.
• High customer satisfaction.
• Cost effective methods in operations.
• Availability of cheap resources.
• Advantage of a highly efficient and effective distribution networks.

Weaknesses

• No patents.
• Weak or no brand developed.
• Low customers satisfaction.
• High cost structure.
• Expensive natural resources.
• Poor distribution networks.

As you have probably noticed, strength and weaknesses are exactly the opposites of each other. It is true in a lot of real cases when the strength for one company is a weakness for another. If one has an access to cheap energy and other company doesn’t, the former has the strength over the latter.

SWOT Analysis. As you have probably noticed, strength and weaknesses are exactly the opposites of each other. It is true in a lot of real cases when the strength for one company is a weakness for another.

Opportunities

• Underutilized customer market; there is a room to grow and generate revenue.
• Modern technologies.
• Relaxed regulations.
• Globalization. Since there are fewer barriers, companies may expand.

Threats

• Changing consumer needs and wants.
• Substitute products and new entrants.
• Regulations.
• Trade barriers.

As you can see, the method can be universally used for almost any condition and environment. It is a tool that can be used in a broader sense and can be as specific as the problem requires it to be.

A simple SWOT analysis graphic is shown below for illustrative purposes.

Stakeholders of the SWOT analysis are several. They are: management, employees, suppliers and distributors, and customers. Let’s not forget that the ultimate goal is to deliver the highest customer satisfaction possible in order to generate revenue and maximize profits. SWOT provides adequate procedures and guidelines for the management to practice. It states clearly the tactics and communication patterns management has to implement in order to achieve the strategic goals. Employees are directed and trained to increase productivity and reduce errors. Suppliers and distributors are considered in order to design highly effective and efficient supply chains and distribution networks; and finally the customer satisfaction and loyalty is one of the most important aspects that SWOT helps to evaluate and plan for.

Who uses the method? SWOT is used by the managers and top executives in the evaluation, planning, and implementation process.

In the evaluation process, top executives review the available resources, measure the revenues and the target cost structures, and once ready, set out a strategic plan that stipulates the direction that company is going to take. In this process, they evaluate all four characteristics and plan for an appropriate course of action.

For the planning process, upper and mid level management reviews the graph, and gets familiar with the key objectives as well as the resources available to them in order to achieve the strategic goals. In the implementation process, thanks to the clear definitions of what is going to affect the company’s performance, employees have the advantage of knowing what to expect and what is going to challenge them. SWOT helps them anticipate the future hurdles and plan appropriately in order to overcome the barriers.

As you can see, SWOT is an illustrative method of business planning and evaluation. It enables the management to clearly identify the advantages and disadvantages they are faced with, and design the realistic goals in order to achieve overall organizational success. Advantage of the method is that it is versatile, it creates clear visual picture of the situation and can be modified and adjusted fairly easily. One of the biggest advantages of the method is that it is very inexpensive and provides highest results per dollar invested in to the analysis.

Cost efficiency and performance effectiveness is one of the reasons why the method has been popular among the business executives sine the 1960s.

The full version of SWOT Guide includes:

• 21 PowerPoint templates for SWOT presentation
• 28 pages SWOT Analysis Guide that includes
• Learn more about Business Analysis Method Toolkit full version

Before we go in to the details of the balanced Scorecard method and compare it to the SWOT analysis, let’s take a look at the BSC (Balanced Scorecard) and define what it is, what it does and how it differs from the SWOT analysis.

BSC is a strategic planning and implementation tool that assists management in the process of achieving organizational goals. It is a method that enables cooperation and synchronization in the business procedures. Typically, balanced Scorecard consists of several fields (usually 4), which lists the subject of interest and the steps that would allow the company to reach highest results in the listed fields.

A simple version of a basic BSC is illustrated below.

Balanced Scorecard

As you can see, there are four fields: financial, internal business procedures, learning and growth and customers. We will discuss each one of them in little more detail in order to give you a better understating of how the method works.

The SWOT analysis is a part of Balanced Scorecard process needed when you define company's strategy goals

Financial; in this section managers list some of the key steps and goals they need to achieve in order to succeed in their ultimate goal. Steps might be lowering fixed costs, low leverage, possible IPO etc. As for the internal business process, it might involve training, better communication, changing organizational structure, etc. For the learning and growth, it might outline the process of training, growth strategies (acquisition, franchising), and target market share. As far as the customers are concerned, management might define the strategy for increasing customer satisfaction, brand development, and advertising.

What is important to understand is that, there is a difference between the SWOT and BSC. While the SWOT analysis is mostly used in the broader planning procedures, such as strategic goals for the organization, BSC is a tool that has often been used in the process of achieving a specific goal. To make it clear, SWOT is used to define the goal, and the BSC is used to design a plan to achieve that goal.

BSC is not strictly limited to this particular purpose and can be successfully used in a broader planning; but we have found that the method is most appropriate and useful when planning for a particular strategy and steps for implementing it.

While the design presented above is not a standard one, most frequently we encounter 4 field designs. An alternative design is presented below.

SWOT and BSC have been in use for several decades and have proved to be effective and efficient methods in business planning.

The two methods have frequently been viewed as competitors, but the consensus has been emerging in the academic as well as the professional community that the two are more complementary to each other than they are rivals.

Both methods are relatively cheap to design and implement, and provide a valuable insight in to the key aspect that will determine the organization’s success.

In conclusion it has to be mentioned that, BSC and SWOT are two methods that help define goals, steps, and an overall organizational strategy; they both have been used successfully for several decades. Even in the modern age of technology and alternative methods, these two simple graphic charts have been very popular among the top executives.

The full version of SWOT Guide includes:

• 21 PowerPoint templates for SWOT presentation
• 28 pages SWOT Analysis Guide that includes
• Learn more about Business Analysis Toolkit full version

• Learn more about Business Methods Toolkit
  

Inside PEST Guide:

PEST Analysis Guide - Table of Contents

• Introduction to the method and problem of PEST
• PEST and SWOT
• PEST and its extensions
• Step-by-step guide on how to use PEST for solving business problems
• Key success factors of PEST
• Examples of real-life usage of PEST
• Conclusions
• PEST FAQ
• Checklist for PEST
• Other aspects related to PEST

PEST analysis is en effective tool to measure the external macro-environmental changes due to political, economic, social, and technological factors. PEST analysis is generally combined with SWOT analysis, which focuses on the strengths, weaknesses, opportunities, and threats. When legal, environmental/ecological, ethical, and demographic factors are included in PEST, it is termed variously as SLEPT, PESTEL, STEEPLE, STEEPLED, etc. All the criteria that involve the above change factors are evaluated step-by-step in PEST analysis for maximum results.

When legal, environmental/ecological, ethical, and demographic factors are included in PEST, it is termed variously as SLEPT, PESTEL, STEEPLE, STEEPLED, etc.

The key reasons for success of PEST are its ability to provide exact evaluation of the macro-environmental changes. Sony Corporation, TESCO, and Accor Hotels are some examples of business organizations that had benefited significantly from PEST analysis. In spite of its several merits, PEST has limitations if inadequate data is considered for analysis.

The key reasons for success of PEST are its ability to provide exact evaluation of the macro-environmental changes.

The definition of PEST, procedures of preparing PEST analysis, and advantages and disadvantages of PEST are the most frequently asked questions. Any checklist of PEST should consider all the factors that have a direct bearing on the operations of the organization. Five Forces Model of Porter and Change Management are the other tools considered with PEST and SWOT for maximum benefits to the company.

• Learn more about Business Methods Toolkit

The first part of the PEST Guide presents an introduction to PEST analysis and its effectiveness as a management tool to estimate business potential, present status, market direction, and future operational decisions, based on external macro-environmental changes related to political, economic, social, and technological factors. PEST analysis helps the management in strategic planning to adapt to these external changes.

The next part illustrates the importance of SWOT analysis, an evaluation of the strengths, weaknesses, opportunities, and threats that are encountered by the business organizations. Usually, PEST and SWOT analyses are used in combination to achieve greatest advantages to growth of business. PEST analysis concentrates on external change factors, while SWOT focuses on internal factors that impact the business.

The variations of PEST analysis, such as SLEPT, PESTEL, STEEPLE, and STEEPLED are derived by adding the legal, environmental/ecological, demographic, and ethical factors to the basic PEST factors. Even though many organizations consider these additional factors as separate criteria, in majority of PEST analyses, these extra factors are also effectively covered by the basic PEST itself.

The subsequent part considers the step-by-step analysis of using PEST in solving business problems. This type of analysis helps the management in understanding the market influencing forces, in taking right decisions on the market potential, and in devising proper strategies to direct the future operations of the company in the most efficient manner.

The success of PEST analysis is discussed in the next part by elaborating on its ability as a strong management tool to evaluate the external change forces and understand the various facets of the operating environment of the company. PEST helps the management in developing required strategies to seize upon opportunities and to counter threats to business.

The experience of Sony Corporation, TESCO, and Accor Hotels in the global market and their business improvement by proper implementation of strategies developed through PEST analysis are discussed in detail in the following part as real-life examples of the effectiveness of PEST as a powerful business tool in fueling smooth growth and direction to business ventures.

The next part provides conclusions about PEST analysis by bringing out the advantages of PEST to the management in identifying change factors and countering them with suitable strategies. At the same time, the limitations of PEST due to inadequate data and irregular periodicity are also explained to avoid mistakes in implementing PEST.

Frequently asked questions such as, what is PEST analysis? what is the procedure for preparing a proper PEST analysis?, and what are the advantages and disadvantages of PEST analysis are taken up in detail in the following part, with complete explanations and answers for these questions to highlight the importance of PEST to management in strategic planning.

The detailed checklist of various criteria of PEST related to political, economic, social, and technological factors is clarified in the next part. The importance of analyzing each factor separately along with its relational influence on other factors is emphasized to make crucial business decisions and strategic planning for sustained business growth.

The importance of including other analytical tools like the Five Forces Model of Michael Porter and Change Management, along with PEST and SWOT analyses is the subject matter of the concluding part. The assured success of a business that utilizes all these tools effectively is quite clear from the effect of each tool in decision making and strategic planning.