Balanced Scorecard

1
Session VIII

• Balanced Scorecard-
• Overview

2

• Not everything that counts can be counted not
  everything that can be counted really counts.
• Albert Einstein

3
Balanced Scorecard Model
Financial Perspective
Customer Perspective
Learning Growth Perspective
Internal Business Process Perspective
4
Balanced Scorecard Components

• Financial Perspective
• Customer Perspective
• Internal Business Process Perspective
• Learning and Growth Perspective
• But these are not meant to be limiting

5
The Measures

• Approximately 5-7 per section
• Link the measurescause effect
• Include outcomes and drivers
• Strategic measures become part of the bal.
  scorecard control system measures become
  critical success factors (or everyday measures)

6
Balanced Scorecard Success

• Employee level
• Link with Compensation
• Include leading and lagging indicators
• Associate with BPM

7
Features of a Good Balanced Scorecard

• It tells a story.
• It helps communicate a strategy.
• It preserves a financial focus.
• It provides for metric focus.
• It highlights sub-optimal tradeoffs.

8
Balanced Scorecard Pitfalls

• Failure to allow the scorecard to evolve.
• Emphasizing across the board improvement.
• Failure to focus on critical measures.
• Focus on only objective measures.
• Failure to focus on both costs and benefits.
• Failure to include non-financial measures in
  evaluating employees.