Balanced Scorecard

One way to measure and manage the performance of an organization is to use a Balanced Scorecard approach. This approach consists of four perspectives that are inter-related and mutually reinforcing:

– Financial: How well does the organization create value for its shareholders and stakeholders?
– Internal business processes: How efficiently and effectively does the organization deliver its products or services?
– Learning & Growth: How does the organization foster the development and growth of its human capital and organizational culture?
– Customer: How well does the organization meet or exceed the expectations and needs of its customers?

H & H Associates London

Balanced scorecard – factors example

Department Areas
Finance Return On Investment Cash Flow Return on Capital Employed Financial Results (Quarterly/Yearly)
Internal Business Processes Number of activities per function Duplicate activities across functions Process alignment (is the right process in the right department?) Process bottlenecks Process automation
Learning & Growth Is there the correct level of expertise for the job? Employee turnover Job satisfaction Training/Learning opportunities
Customer Delivery performance to customer Quality performance for customer Customer satisfaction rate Customer percentage of market Customer retention rate