balanced scorecard

1. Internal Process Perspective
-How well the business is running /
operational processes
-Products & services conform –
customer requirements
-3 principles – 1) Innovation , 2)
Operations , 3) Post Sale Service

2. Innovation
- Business unit researches the emerging /
latent needs of customers
- Creates products / services
- Identify & nurture new market, new &
existing customers
- Continually- design & develop new
products/services to reach new market
- Components- market research to identify
size, nature and price profits points

3. Operation
- Second major step
- Existing products and services – existing
customers
- Start with receipt customers order – finishes
with delivery
- Stresses efficient ,consistent & timely
delivery
- Includes measurement of flexibility &
specific characteristics that create value

4. Post Sale Service
- Final Stage
- Includes warranty ,repair, treatment of
defects and return
- Measure performance by applying same
time, quality& cost metric
- Example : Cycle time – customer request to
ultimate resolution of problem
- Measure the speed of response to failure

5. The learning & Growth Perspective
- Objective – provide the infrastructure to
enable ambitious objectives – achieved
- Drivers for achieving outcomes
- 3 principle categories –
- 1) Employee capabilities
- 2) Information system capabilities
- 3) Motivation

6. Employee Capabilities
• Important to know the capabilities of
employee (skill level ,automation)
• Provide continuous improvement, training
& re-skilling
• Satisfied employees – precondition for
increasing productivity
• Measure employees satisfaction, employee
retention & employee productivity

7. Information System Capabilities
- Employees need excellent info on customers,
internal processes & financial consequences
- Example : Front line employees – accurate&
timely info on customer's total relationship –
organization
- How much effort to expanded to satisfy ,
learning, attempting emerging needs from
the customers

8. Motivation, empowerment &
alignment
- Focuses an organizational climate for employee
motivate &initiatives
- Measure the outcomes – several ways
- 1) no. of suggestion per employee
- - measure participant in improving
- 2) Half Life Metric (Art Schneiderman)
- Measure the length of time to improve 50%
- Apply to process metric (cost, quality or time)
- Late deliveries, no. of defects & absenteeism