Balanced Scorecard Workshop

1
Balanced Scorecard Workshop

• Created by Jane Cote for use in WSU Vancouver MBA
  course Accounting Measurement for Leaders

2
Organizational Level

• Define the level within the organization where
  the scorecard will be created.
• Define purpose of the scorecard and how it will
  be used once created.

3
Strategic Focus

• What does the company do to differentiate itself
  from the competition?
• Alternatively, how should the unit contribute to
  adding value to the overall organization?

4
Target Customers

• Who are the primary customers the organization
  seeks to satisfy?
• Be specific and do not include everyone, just the
  key customer demographic.

5
Customer Expectations

• Now that you know the customer, put yourself in
  their shoes. What do they expect from your
  organization?
• What is it that motivates them to continue as a
  customer?
• What will they expect from you in the future?

6
Internal Workings

• What has to work well within your organization to
  continue to satisfy customers?
• What do you need to focus on to satisfy future
  customers?

7
Causal Relationship

• Design a causal network (series of if-then
  statements) to describe what must be done in the
  organization in order for the organizations
  strategy to succeed.
• Understanding the role of key stakeholder groups,
  identify how they intersect with the causal
  network.

8
Edit and Refine

• Assess whether you have captured the essence of
  the strategic focus.
• What needs to be added or subtracted?
• Present the revised causal network.

9
Measurements

• Design measures that capture each specific goal.
• Carefully assess whether the measure will provide
  realistic guidance on performance?
• Assess collection feasibility and design new
  measurement systems.

10
Unintended Consequences

• Assess how the measures could be misused.
  Suggest remedies.
• Assess how stakeholders will respond. Suggest
  implementation procedures.
• Identify the tradeoffs made when creating the
  scorecard. Explain effects.

11
Linkage to Financials

• Will positive scores on the measures lead to
  improved financial performance? How
  specifically?
• What are the financial measures that signal
  success with the strategy?

12
Linkage to Strategy

• Could an outsider discern your secrets to success
  by looking at your scorecard?
• Do the scorecard measures offer signals for
  future direction (not just how to do current
  activities better)?