Balanced Scorecard Strategy For Dummies
Chuck Hannabarger, Frederick Buchman, Peter Economy
A practical, easy-to-understand guide to Balanced Scorecard for busy business leaders
The Balanced Scorecard method is an analysis technique designed to translate an organization's mission and vision statement and overall business strategies into specific, quantifiable goals, and to monitor the organization's performance in achieving these goals. Much less technology driven then other analysis approaches, it analyzes an organization's overall performance in four regards: financial analysis, customer service, productivity and internal analysis, and employee growth and satisfaction. Balanced Scorecard Strategy For Dummies breaks down the basics of Balanced Scorecard in simple language with practical, Dummies-style guidance on getting it done. This book covers all the basics of Balanced Scorecard for busy executives and managers-and does it without the high price tag of most professional level Balanced Scorecard guides.
demands that could shift. For instance, in the music industry, iPod digital-music technology has completely altered the future market of CD-based businesses. Some companies have devised very effective ways to plan for contingencies. Most have not. A common problem is the only people attempting to plan for alternatives are the same people who set up the strategy in the first place. People have a natural bias toward believing that their plans are going to work; basic assumptions about the world in
drive customer retention. ߜ Develop metrics to manage any outsourced and/or offshore customer service. Taking action when your customers don’t get what they want Nothing is more frustrating when you’re working on the customer leg of the scorecard than thinking you know what your customers want and need and then finding out you’ve missed the mark. Trying to recover is not only costly in terms of time and effort, but also can kill your product or service in the marketplace. Some companies never
recover from such a fatal error. You need to get on top of the situation and do it fast if this occurs. This is one reason why the balanced scorecard is so critical: It lets you know when you’re on track and when you’re missing the mark, and it enables you to get back on track — fast. When what your customers want and what they get don’t link, you need to go back and review your customer research strategies and your plans and tactics for the customer leg to find where the disconnects occurred.
standard revenue, gross and net profit, and several ratios related to performance, efficiency and profitability predictions. Operational At this level, financial objectives are related more to performance such as improving yield, reducing fixed and variable costs, improving margins, and 159 160 Part III: Financial Management — The Foundation Leg increasing revenues for various products and services. Financial measurements at this level will center around delivery and budget vs. actual cost
a few. Pointing toward additional information and insight Financial measures can also highlight when we do not have enough data or critical information to make sound decisions. Knowing how much work in process (WIP) you are maintaining on a daily basis is part of the story, but unless you also know consumption and delivery performance, you will not be able to impact it. The same can be said for many of the most common scorecard financial measures. So, you need to be sure to tailor your financial