The Balanced Scorecard
Managers today need to look past traditional view points in determining the success of their company's strategy. One such approach is known as the balanced scorecard. This approach involves looking past just one measure and involves taking a comprehensive view of the organization. This is a useful tool for new managers to understand and add to their "toolbox" of management expertise.
The balanced scorecard give managers a quick and comprehensive view of organizational performance using four primary indicators: customer satisfaction, internal processes, innovation and improvement activities, and financial measures. This "scorecard" is visually represented on a strategy map.
Bryan was recently tasked with developing a balanced scorecard for his new employer, KanO Mines. Bryan is preparing a presentation for upper management and needs to complete a visual chart of the components of the balanced scorecard approach.
Match one perspective, goal, and measure, with each of the four components that Bryan has identified.
Growth: This would concentrate on an increase in sales.
Innovation and Learning: This perspective is concerned with making sure employees learn and grow so they can continually innovate.
Service: This would be the level of customer service.
Customer: This perspective concentrates on things like customer service.
Financial: This perspective has to do with the conversion of performance into financial performance and the creation of value.
Survey: This would be the results of an online customer satisfaction survey.
Analysis: This would use data from the ERP system to look into success levels of company processes.
Training: This would focus on providing enhanced training opportunities for employees.
Productivity: This would concentrate on changes to the process involved in production.
Internal business: This perspective focuses on the things that a company has to do internally to meet and exceed customer expectations.
Sales: This would be the annual sales figures.
Results: This would look at changes in the skill level of employees.
How do we look to our shareholders?
What do we need to excel at?
Can we continue to improve and create value?
How do our customers see us?
Identify one perspective, goal, and measure, to correspond with the above goals.