1. GATHERING REQUIRED SCORECARD INFORMATION

2. CHOOSING YOUR PERSPECTIVES HOW MANY PERSPECTIVES IN THE BS? –Four perspectives are the most common: Financial, Customer, Internal Process and Employee Learning and Growth –If there is a crucial aspect of the business of crucial importance, a new perspective could be added Example: an organization might rely heavily in supplier relations. A new perspective based on that could be added –If different stakeholders deserve special attention, designing a Stakeholder Scorecard (in addition) would be better than modifying too much the existing scorecard Example: Firms in a public-opinion sensitive environment have developed a Stakeholder Scorecard, focusing on relationships with employees, shareholders and customers –Brevity is important: adding too many perspectives loses focus

3. COLLECTING RAW MATERIALS Annual report: –Contribution: »Understand your company well »Detailed information about operations, management view and financials »Evolution in the last 3-4 years Mission statement: –Contribution: »Why your business exists »When going deeper in the Scorecard (initiatives), it serves as a coherence check with the business mission Values: –Contribution: »They grasp the culture and human side of the company »In times of change, new values might have to be added: actions non-coherent with company values never get implemented »Search for potential action-value conflicts-design change management policy before action is implemented

4. Vision: –Contribution: »The direction for the future is already stated there, but the approaches to arrive are flexible »How far are our objectives approaching us towards the vision? Does our vision need stretching/contracting? Performance reports –Contribution: »Understanding the performance measurement style in the firm (qualitative, quantitative, regular, spontaneous, sophisticated…) »Assess how far the balanced scorecard is from the current performance systems »Makes it easy to estimate how long it would take to introduce the scorecard philosophy in the firm »Ideas and measures can be taken from there, if the company is already doing a performance measurement effort Industry reports: –Contribution »Provide with market sentiment and predictions »Help to identify the value proposition of the industry, new trends in business processes and skills requirement COLLECTING RAW MATERIALS

5. Benchmarking reports –Contribution »Compare the company with the industry and competition »Can provide proven measures that passed the test of time Competitor data –Contribution »Some metrics can be adapted for the company if the competitor is similar (our company is not the only one doing performance assessment…) Consulting studies –Contribution »Provide important background for justifying objectives and prioritizing decisions »Show light on new trends Strategic plan –If explicitly outlined, it would be a great start for the BS COLLECTING RAW MATERIALS

6. Recommended information sources for: –Financial Perspective: Annual Report Performance reports Analyst reports Trade journals Benchmark reports –Customer perspective Marketing department data Trade journals Consulting studies Project plans Strategic plan Performance reports Benchmark reports COLLECTING RAW MATERIALS

7. Internal Process –Operational reports –Manufacturing reports –Competitor data –Benchmark reports –Trade journals –Consulting studies –Project plans Employee learning and growth –Human resources data –Trade journals –Core values –Benchmark reports –Consulting studies COLLECTING RAW MATERIALS

8. Corporate Strategy Information –Mission Statement –Values –Vision Statement –Strategic plan –Organizational histories –Consulting studies –Project plans COLLECTING RAW MATERIALS

9. Interviews: –Interviews should be developed for gathering the missing elements from the raw material and perceiving the managerial awareness of the BS process –Format of an interview: Review (make sure all interviewees understand the BS, and review the tool if necessary) Mission, Vision, Values and Strategy (formats explained before) Performance measurement: get information about –What are the measures perceived as critical by mgmt –What measures are being used today for implement and evaluate strategy? –What reports are most useful for mgmt –Specific questions about unclear/incomplete issues about any of the four perspectives COLLECTING RAW MATERIALS