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Balanced Scorecard October 1, 2007

Posted by Coolguy in Six Sigma.
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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
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Comments»

1. Metrics Management « Executive in wait - May 12, 2008

[…] service delivery organization. Almost every other organization has some sort of KPI’s or balanced scorecards of some sort in place to measure and monitor […]

2. Six Sigma Introduction and Goals « Executive in wait - May 13, 2008

[…] goals. After the metrics are established, project teams must work to implementing them. Balanced scorecard is another commonly employed technique to set meaningful metrics in any […]


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