1. The Balance scorecard Measures that drive performance

2. What is the balanced scorecard?
Developed in the early 1990’s by Dr. Robert Kaplan and David Norton
"The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success.
These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation."

3. What is the balanced scorecard?

4. What is the balanced scorecard?
The balanced scorecard is centered on four performance metrics or perspectives:
Customers
Internal processes
Financial
Learning and growth
When implemented properly, each one of these perspectives contains four subparts consisting of
Objectives
Measures
Targets
Initiatives

5. Internal Process/Process efficiency
Cost
Throughput
Quality
Multiple productivity measures may include
Labour cost as a % of sales dollars
Sales per employee
Machinery & equipment investments per employee
Total labour cost per hour
Production lead time
Wastage percentage
Efficiency
WIP %
% of defects

6. Financial perspective
The financial performance perspective of the balanced scorecard addresses the question of how shareholders view the firm and which financial goals are desired from the shareholder’s perspective.

7. Financial Performance
The table below outlines possible financial performance objectives and their metrics.
Objective
Specific Measure
Growth
Revenue Growth
Profitability
Return on equity
Cost Leadership
Unit Cost

8. Learning & Growth

9. Key performance indicators include:
Illness rate/days of absence
Employee turnover
Gender/racial ratios
Internal promotion %

10. Customer perspective
Many companies today have a corporate mission that focuses on the customer. “To be number one in delivering value to customers” is a typical mission statement. How a company is performing from its customers’ perspective has become, therefore, a priority for top management. The balanced scorecard demands that managers translate their general mission statement on customer service into specific measures that reflect the factors that really matter to customers.

11. Sustainability Indicators
Social performance indicators: labor practices, human rights, and broader issues affecting consumers, community, and other stakeholders in society.
Environmental performance indicators (KePI): greenhouse gas emissions, water consumption, waste output

12. Question 01
Expected outcome of the strategy should be evaluated not only through financial indicators. Explain the Balance scorecard system to strategic performance evaluation as opposed to rigid financial evaluation using possible key performance indicators. What are the possible factors that can drive the performance gap in KPI”s?