Examples of Balanced Scorecard Performance Measures
Balanced scorecard performance measures examples: Doing strategic planning in organizations back then was pretty easy. You would just measure your organization’s performance financially and left the other aspects of your business out. That worked perfectly back then but overtime two guys at Harvard by the names of David Norton and Robert Kaplan came to realize that this method had many flaws.
It was becoming ineffective as the years passes by and the complexity of competing in markets especially since the rise of globalization has risen. This was one if the main reasons they developed the balanced scorecard. They developed it to help manage their different business performances and put everything into a framework that is aligned with the overall organization’s strategy.
It also helps your organization to track and measure its main business objectives. To develop a balanced scorecard you got to first develop an overall organization goal. Next you are going to break that goal down into different strategies.
You are then going to develop metrics in place to track the different performances of those strategies. A balanced scorecard is broken down into four main parts customer, financial, internal process and education and growth. All these main parts are basically some of the main areas of an organization. You can see balanced scorecard performance examples of each part below.
You can use the examples below to develop key performance indicators which are another important characteristic of a balanced scorecard. It will help you to develop metrics to track the progress of the objectives.
• Retain at least 90% of our customer user base
• Develop a program for our most loyal customers and improve their customer experience
• Improve our user acquisition rate
• Increase the level of customer satisfaction throughout our user base. That we’ve found to be low on our most recent annual customer survey
• Keep product prices low for the next 6 months to gain market share and acquire more customers
• Increase shareholder value by 10%
• Decrease production cost
• Decrease product testing cost
• Increase our net profit margin
• reduce our overall expenses by 5%
• Create a better internal organization culture where employees can thrive
• Improve our customer support service
• Optimize our supply chain by 10%
• Improve the internal business operations to make it more effective
• Decrease internal operational cost
Education and growth
• Improve our top performing employee’s compensation plan
• Retrain at least 10% of our workforce for our division
• Invest more in research and development to inspire new innovations to spur growth in our organization
• Increase resources being used on strategy and organization development
• Open a new research center where employees can go and freely work on new and interesting projects
In summary these are just some of the simple balanced scorecard performance examples you can set in your organization.
As stated before you can modify these examples above and convert them into key performance indicators so you can measure and track their progress. This will help to give you can idea of the overall health of your organization.
Make certain that the data on the balanced scorecard is shared between everyone at the organization. So that everyone can get an update on what is going on and have more faith in the overall strategies and its vision.