1. Primary Question for each Perspective Financial: What financial objectives must be achieved in order to satisfy stakeholders/shareholders? Customer: In order to achieve our financial objectives, what do we need to do for our customers? Internal Processes: In order to satisfy our customers needs, what business processes must we excel at and how? People & Knowledge: What skills and infrastructure do our people need to be able to achieve the desired outcomes for Customers and in the Internal Processes perspectives? People and Systems for Improvement Copyright © 2000-2006 by PSi Partnerships Ltd.

2. Inputs and Outputs ‘Great’ pizza to customer Process Order-taking process Dough- making process Delivery process Cooking process Ingredients Preparation for delivery INPUTS (X’s) Y (output) The balanced scorecard can be applied to each of these inputs Defects cost time and money… People and Systems for Improvement Copyright © 2000-2006 by PSi Partnerships Ltd. LEADING performance indicators applied at this level help ensure the process’ effectiveness *remember to understand the variability and limits of the process*

3. Identifying X’s and Y’s Who is your customer? -You may have more than one – pick one -They can be internal or external What are the INPUTS to the process? -Your people, materials, suppliers, contractors -Training and skills -List anything that will affect the output… Receive work order Assemble Project Team Pre- planning Order materials Etc. What is your ‘OUTPUT’ to your customer? -Product or service? -What are your customer’s requirements? What are the PROCESS STEPS? For example… People and Systems for Improvement Copyright © 2000-2006 by PSi Partnerships Ltd.

4. Prioritising Projects and Initiatives People and Systems for Improvement Copyright © 2000-2006 by PSi Partnerships Ltd.