How do you create a balanced scorecard for airport strategy?

1 Step 1: Define your airport's vision and mission

The first step is to define your airport's vision and mission statements. Your vision statement should describe your airport's desired future state, while your mission statement should explain your airport's purpose and value proposition. These statements should be clear, concise, and inspiring. They should guide your airport's strategic direction and decision making.

2 Step 2: Identify your strategic objectives

The next step is to identify your strategic objectives for each of the four perspectives of the balanced scorecard. Your strategic objectives are the specific outcomes that you want to achieve to realize your vision and mission. For example, your financial objectives could be to increase revenue, reduce costs, or improve profitability. Your customer objectives could be to enhance customer satisfaction, loyalty, or retention. Your internal objectives could be to optimize operational efficiency, quality, or safety. Your learning and growth objectives could be to develop employee skills, innovation, or culture.

3 Step 3: Select your key performance indicators

The third step is to select your key performance indicators (KPIs) for each of your strategic objectives. Your KPIs are the measurable variables that help you track and evaluate your progress and performance. They should be relevant, specific, attainable, and timely. For example, your KPIs for customer satisfaction could be the Net Promoter Score (NPS), the Customer Satisfaction Index (CSI), or the number of complaints. Your KPIs for operational efficiency could be the on-time performance (OTP), the baggage handling rate (BHR), or the turnaround time (TAT).

4 Step 4: Set your targets and benchmarks

The fourth step is to set your targets and benchmarks for each of your KPIs. Your targets are the desired values or levels that you want to achieve for your KPIs within a specific time frame. Your benchmarks are the reference values or standards that you use to compare your performance with your competitors, industry, or best practices. For example, your target for NPS could be 80% by the end of the year, while your benchmark could be the average NPS of your peer airports or the global average.

5 Step 5: Define your initiatives and actions

The fifth step is to define your initiatives and actions for each of your strategic objectives. Your initiatives are the projects or programs that you implement to improve your performance and achieve your targets. Your actions are the specific tasks or activities that you carry out to execute your initiatives. For example, your initiative for employee skills could be to launch a training and development program, while your actions could be to conduct a skills assessment, design a curriculum, or deliver a workshop.

6 Step 6: Monitor and review your balanced scorecard

The final step is to monitor and review your balanced scorecard regularly. You should collect and analyze your data, report and communicate your results, and evaluate and adjust your strategy. You should also solicit and incorporate feedback from your stakeholders, such as customers, employees, partners, or regulators. By doing so, you can ensure that your balanced scorecard is aligned with your airport's vision, mission, and goals, and that you are achieving your desired outcomes and performance.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?