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BUILDING A BALANCED SCORECARD - Coggle Diagram
BUILDING A BALANCED
SCORECARD
The Balanced Scorecard
communicates the multiple, linked objectives that companies must achieve to compete based on their intangible capabilities and innovation
the sequence of step
Step 1 : Develop Goals and Measures
for Critical Financial Performance Variables
Additional Financial
objective masured by
profit wheel
cash wheel
ROE wheel
Financial objective
masured by
ROCE
EVA
Operating profit
Step 2: Develop Goals and Measures
for Critical Customer Performance Variables
managers identify the customer and market segments in which the business desires to compete
common customer-based
measures
customer satisfaction
customer retention
customer loyalty
categories of attributes that
organize the value propositions
product/service
customer relationship
image and reputation
Step 3: Develop Goals and Measures
for Critical Internal Process Performance Variables
principal business processes
operations processes
measurement
quality measures
cycle time measures
cost measures
post-sales service processes
innovation processes
Step 4: Develop Goals and Measures
for Critical Learning and Growth Performance Variables
Step 5: Use the Balanced Scorecard to Communicate Strategy
Testing the Linkage of Multiple Scorecard Measuress to a Single Strategy
Performance Drivers
Strategic Measures
cause-and-effect relationships
Four Perspectives: Are These Sufficient?