A great advantage of Balanced Scorecard is the possibility to use it in combination with other performance management systems and individual indicators. We have already written about Six sigma, Total Quality Management, Lean production and the way these systems can work with Balanced Scorecard. This article focuses on EVA (Economic Value Added) and Balanced Scorecard. We
In the Balanced Scorecard there is a separate “Learning and growth” perspective. Let’s take a closer look at the objectives that one can map inside, and the measures that one can use. As follows from its name and from the Balanced Scorecard paradigm, “Learning and Growths” perspective answers the question: How
Some believe that “Internal Business Processes” is one of the most important perspectives of a strategy map. The objectives from this perspective are related to the business systems that insure the operation and stability of any business. In this article I will: Focus on generic strategies and their representation in Internal perspective;
According to what we see daily, “Customer” is one of the most problematic perspectives of the Balanced Scorecard framework. And it is not customer KPIs that cause strategists the most problems… One needs to clearly understand: Who is the “customer” in customer perspectives How to come up with objectives for
Employee morale is second only to the quality of the management team in influencing the long term success of a business or for that matter of any organization. The employee morale is a very good indicator of the quality of the management team since it is the most direct outcome
There are normally no problems with defining objectives for the financial perspective of the Balanced Scorecard for profit-oriented organizations. Any business has financial goals, and is accustomed to using financial metrics. For most businesses the challenges are to shift a focus from financial perspective only to the Customer, Internal, and Learning &
Implementation of the Balanced Scorecard in banks and financial institutions is a very tricky thing as there is huge temptation to focus on financial indicators only. As known, banks, mortgage and insurance companies, credit unions and other financial institutions work with money to make more money. So, it is very
Over the last few weeks I have been running an interesting experiment in one of my classes. I gave each student $5 and told them to go turn it in to more. The project was evaluated on 8 variables/metrics. These eight basic metrics could just as easily be applied to
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Online training: Build BSC step by step
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Strategy map, KPIs, cascading - it might be hard to put it all together. In the online training "Building BSC Step by Step" we explain all the nuances in simple words and help companies to build a prototype of their balanced scorecards.
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