Balanced Scorecard - Suggested Approach to design:

A Generic Example

• Try to balance metrics across outcome/activity, financial/non-financial,

external/internal and leading/lagging

• Some metrics may be ambiguous - could be either

• Many metrics fall into more than one category

Perspective Outcome or Financial or External or Leading -

Activity Non Internal to predictive
financial firm or
Lagging
Financial ROCE = ROCE= ROCE = ROCE
Outcome Financial Internal =Lagging
Market Share MS= Non- MS=External MS=leadin
= Outcome financial g
Sales order SOB= SOB=Interna SOB=leadi
book= Financial l ng
Activity
Customer Satisfaction Satisfaction= Satisfaction= Satisfactio
= outcome Non- external n=
financial Leading
Referrals/rec RR= non RR = RR=leadin
ommendatio financial external g
ns = activity
New NC=non- NC=Internal NC=
customers = financial leading
outcome
Learning and Growth % spend on NP= non- NP=internal NP=Leadin
new products financial g
(launched in
last five
years) =
Outcome
R and D R and D = R and D = R and D =
spend = non-financial Internal Leading
outcome
 New patents NP=non- NP=internal NP=leadin
= outcome financial g
Internal Processes Manufacturi Manuf LT Manuf LT = Manuf LT
ng lead time =non- internal =lagging
= outcome or financial
activity?
Productivity PPH = non- PPH PPH =
per head financial =internal lagging
Delivery lead Delivery LT Delivery lead Delivery
time = = non- time = lead time =
outcome financial internal lagging