Balanced Scorecard

Balanced scorecard is a system that translates a company’s vision and strategy to meaningful measures. Balanced scorecard focuses company’s attention on four perspectives of vision and strategy:

1. Financial : How will we appear to shareholders ? ~ ROI, Cash Flow, Sales backlog
2. Internal Business Process: What business process should we excel at ? ~ Reduce Rework, Cycle time, Setup times
3. Learning and growth: How will we sustain our ability to change and improve ? ~Employee surveys, Employee suggestions, training budgets.
4. Customers: How should we appear to our customers ? ~ Customer surveys, complaints logged, Market Share.

Steps for building a balanced scorecard are:

• Gather information for scorecard through interviews with senior management
• Prepare a rough draft and refine with other levels of management
• Develop vision, objectives and measures for the scorecard
• Develop an implementation plan
• Review balanced scorecard periodically