The Business Compass

The Balanced Scorecard has been through three generational changes.

Allan Rodrigues who specialises in Balanced scorecards and Earnings Valuations, has taken the scorecard concept to its fourth generational change, by linking the scorecard to the value of the company, and using it as a value advisory service and as a measure of the impact of the firm strategies on the community and the environment.

'The Business Compass' is a methodology designed by Allan Rodrigues to support the '4th Generation Balanced Scorecard'.

This 4th Generation Balanced Scorecard (sometimes called Fourth Generation Balanced Scorecard or  4G Balanced Scorecard) uses the 'The Business Compass' to find the 'True North' of the business. It links the four scorecard perspectives (1st generation BSCs), Strategy Mapping (2nd generation BSCs), Destinations Statements (3rd generation BSCs) to the current and future share value of the company (4th Generation BSCs). The business compass also measures the impact of the vision and mission on the environment and the community at large. (4th Generation BSC)

It measures performance across the standard scorecard perspectives, the lag and leading indicators of performance and share price (and by extension the 'value gap' between the current and projected value) to act as a value advisory service that captures the key value drivers of the company.

The combination of processes and measures permits organisations to make real time changes to their operating processes to create and sustain value.

'The Business Compass' (see a separate heading on this website) consists of three balanced scorecards each driven by core people (and the learning agenda of the organisation) in that scorecard, , specialised processes that drive each scorecard,  and measures that indicate the achievements rather than the activities of the organisation.

This last is particularly important. Many organisations merely report activities rather than achievements in their triple bottom line statements when reporting the impact of the organisations business model on the environment and the community. It is important to measure achievement instead of activities.

Allan Rodrigues has designed 'The Business Compass' and is contactable on allan.rodrigues@thebusinessfarm.com.au