balanced scorecard methodology
The Balanced Scorecard complements financial measures of the past performance with measures of the drivers of future performance. The objectives and measures view organizational performance from four perspectives:
financial | customer | internal business process | learning and growth.
Below is an example of the Balanced Scorecard platform used by revenueperform.com
Intangible assets enable an organization to:
Develop customer relationships that retain the loyalty of existing customers and enable new customers segments and markets to be services effectively and efficiently:
Introduce innovative products and services desired by targeted customers segments;
Produce customized high-quality products and services at low costs with short lead times;
Mobilize employee skills and motivation for continuous improvements in process capabilities, quality and response time; and deploy information technology, databases and systems.
Operating environments must be built on a set of operating assumptions, with well documented share of demonstrated success stories.
Cross-Functions | Links to Customers and Suppliers | Customer Segmentation | Global Scale | Innovation | Knowledge Workers | These are all generators of progress and while organizations attempted to transform themselves to compete successfully in the future, they have turned to a variety of improvement initiatives:
- Total Quality Management
- Just-In Time production and Distribution
- Time-based competition
- Lean production/lean enterprise
- Building customer-focused organizations
- Activity-based cost management
- Employee empowerment
However, navigating to a more competitive, technological and capability-driven future cannot be accomplished merely by monitor and controlling the financial measures of past performance. The collision between the irresistible force to build-long range competitive capabilities and immovable object of the historical-cost financial accounting model has created a new synthesis: the Balanced Scorecard.
The Balanced Scorecard retains traditional financial measures, but financial measures tell the story of the past events, an adequate story of the industrial age companies for which investments in long term capabilities and customer relationships were not critical to 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, supplies, employees, processes, technology, and innovation.
To ensure a company is synchronized across the board requires the inclusion of key performance indicators that harness the value.