1. Balanced Scorecard: Measures that Drive Performance  No single measure can focus attention on the critical areas of a business Managers need a balanced representation of operational and financial measures  Traditional financial measures tell the results of actions already taken Answers the question: “How DID we do?”

2.  Operational measures Drivers of future financial performance Answer the question “How WILL we do?”

3. Balanced scorecard includes both financial and operational measures  4 main perspectives Financial Perspective (financial) “How do we look to shareholders?” Customer perspective (operational) “How do customers see us?” Internal business perspective (operational) “Are we improving our current business processes?” Innovation perspective (operational) “How are we doing at developing new products?”

4. Financial Perspective  GOALS Succeed Survival  MEASURES Sales growth / earnings growth / return on equity Cash flow

5. Customer Perspective  GOALS Satisfaction Timely delivery Timely service  MEASURES Competitive rank On time Response to service calls

6. Internal Business Perspective  GOALS Quality Speed  MEASURES Reject rates Time to complete

7. Innovation Perspective  GOALS New products Technology leader Time to market  MEASURES % of sales from new products Time to develop new products New product introduction versus competition