Financial and nonfinancial

1
Financial and non-financial measures
to assess
Short-run and long-run performance
2
Digging deeper into success factors
Financial

• return on investment
• revenue growth

Customer

• customer satisfaction
• market share

Internal business process

• number of new products
• on-time delivery

Learning and Growth

• employee training
• employee satisfaction

3
A Good Balanced Scorecard

• closely tied to strategy
• specific, measurable objectives
• understandable
• parsimonious

4
Balanced Scorecard Challenges

• identify good non-financial measures (linked to
  financial performance)
• recognize trade-offs across measures
• include objective subjective measures
• use the entire scorecard in the evaluation of
  managers