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Balanced scorecard

KPI Expert Blogs

Timeless wisdom from the experts on KPIs & Balanced scorecard.
Gary Cokins

Tried and died. One and done. Learning from failures.

Posted by Gary Cokins almost 10 years ago, 0 comments
One of the frustrations I experience is when managers or analysts share with me that their organizations tried to implement progressive management methods, and they either failed or abandoned them. A prominent example is an unsuccessful attempt to implement activity-based costing to measure and manage costs and profit levels of products, services, channels and customers. Other enterprise performance management examples include risk management, customer analytics, enterprise resource planning (ERP) systems and the balanced scorecard.
Paul Niven

The Offshoring Balanced Scorecard

Posted by Paul Niven about 9 years ago, 1 comment
Writing in the Harvard Business Review, authors Porter and Rivkin argue that location choices often prove less desirable than expected because managers overlook the current and future hidden costs associated with a move to a foreign location. To avoid disappointment, and a river of red ink, I would suggest organizations relocating to a new location create a Balanced Scorecard to gauge the move’s overall effectiveness. Let’s consider such a Scorecard beginning with the Employee Learning and Growth Perspective and working our way up.
Karel van der Poel

Lagging and leading indicators

Posted by Karel van der Poel over 9 years ago, 3 comments
In performance management we often talk about "lagging" and "leading" indicators. But what do they mean exactly? Lagging indicators are typically "output" oriented, easy to measure but hard to improve or influence while leading indicators are typically input oriented, hard to measure and easy to influence.
Paul Niven

The Power of Counter-Balanced Measures

Posted by Paul Niven over 9 years ago, 4 comments
Recently I worked with a client who was in the process of cascading the Balanced Scorecard throughout their organization; taking that all-important step of using the power of linked Scorecard performance measures to generate alignment from top to bottom. Among the groups developing cascaded metrics that day was the Information Technology (IT) Department, and at one point during the workshop their team lead called me over with a question that had been bothering him.

Fortifying the Financial Perspective

Posted over 9 years ago, 0 comments
In most writing on the Balanced Scorecard you will find substantially less ink devoted to the Financial perspective than to the Customer, Internal Process, and Employee Learning and Growth dimensions. This is certainly not a surprise to people familiar with the Scorecard model, as it was created with the goal of supplementing lagging financial measures of performance with the drivers of future financial success. Anyone who has worked in the field of business has undoubtedly been exposed to the standard toolkit of financial metrics, but what drives financial success is often a mysterious black box of many possibilities. Thanks to the Scorecard system with its inclusion of non-financial perspectives of performance firms are in a much better position to solve the value-creation mystery, and discover what does in fact drive future financial results.

The New Strategic Imperative - Dual Value Propositions

Posted over 9 years ago, 3 comments
When it comes to answering the all-important strategic question of “What is our value proposition?” I’ve always believed any private, public sector or nonprofit organization should choose one of three possibilities: operational excellence (resulting in low costs), product leadership (best product, often achieved through constant innovation), or customer intimacy (best service/best relationship). This rationale, one shared by many experts, is that focusing on more than one at the same time will lead to contradictory investment choices, misaligned processes, and ultimately produce a fog of confusion over your employees and customers who don’t know what the company stands for.