1. “Money isn’t Everything” - I knew we were in trouble
As soon as he said-
“Money isn’t Everything”
- I knew we were in trouble

2. It is important to focus on the means used to achieve the ends … …
It is important to focus on the means used to achieve the ends … …..not just on the ends themselves…
To only focus on traditional financial accounting measures (such as ROI, ROE, EPS…) …..does not give mgt the whole picture….

3. Performance needs to be judged thru mix of:
financial measures….
& - non-financial measures
…which drive financial outcomes
Will Make $$$ - if sell product
Will sell product if consumer wants, knows about , can get, & LIKES product
To achieve “above’ everyone must effectively do their job
To effectively do job must know what to do

5. Strategic Thinking- the ten big ideas
9 9. Metrics that matter
Balanced score card- a system that attempts to balance financial performance w/ consideration of:
customer's perspective
learning & growth perspective
& internal business processes perspective

6. What is measured gets noticed
What is noticed gets acted on
What is acted on gets improved
Today …
Vast majority Fortune 1,000 Companies utilize a Balanced Scorecard to help manage performance—
because…..

7. Customer… Business Processes…Learning & Growth
For Each Perspective:
Financial…
Objectives Measures Targets Initiatives Responsibility Budget 1. 2. 3.
Customer… Business Processes…Learning & Growth

8. Basic Scorecard Terminology (Southwest Airlines Example)
Strategy Map
Strategic Theme: Operating Efficiency
Measures
How performance is measured against objectives
Targets
The level of performance or rate of improvement needed
InitiativesKey action programs required to achieve targets
Objectives:
What the strategy is trying to achieve
Profits and
RONA
Financial
Grow
Revenues
Fewer planes
Attract & Retain More Customers
Customer
On-time
Service
Lowest
prices
Objectives
Fast ground turnaround
Measures
Targets
Initiatives
Internal
Fast ground
turnaround
On Ground Time
On-Time Departure
30 Minutes
90%
Cycle time optimization
Learning
Ground crew
alignment 17

9. A Complete Scorecard is a Program for Action
Strategic Theme: Operations Excellence
Objectives
Measures
Targets
Initiatives
Strategic Theme: Operating Efficiency
Profits and
RONA
Financial
Profitability
Grow Revenues
Fewer planes
30% +/yr
20% 5%
Grow
Revenues
Fewer planes
Attract & Retain More Customers
More Customers
Flight is on -time
Lowest prices
# Customers
FAA On Time Arrival Rating
Market Survey
12% growth
Ranked #1
Customer loyalty program
Quality management
Customer
On-time
Service
Lowest
prices
Internal
Fast ground turnaround
On Ground Time
On-Time Departure
30 Minutes
90%
Cycle time optimization
Fast ground
turnaround
Ground crew alignment
% Ground crew trained
% Ground crew stockholders
yr % yr % yr %
Ground crew training
ESOP
Learning
Ground crew
alignment 17

10. Partnering & the Balanced Scorecard

11. Capstone's Balanced Scorecard

12.   Video
How to use The Capstone Balanced Scorecard

14. ROUND 3