Part of the reason for the different perspectives is the belief that while financial
information is often a lagging indicator, the other perspectives can be current or
leading indicators. Customer surveys are especially important to some companies
in helping to determine product changes and future directions. Sliding customer
satisfaction in the same quarter as strong sales may foretell weaker future sales,
so identifying these issues early can lead to proactive solutions to address issues.
In addition, high employee turnover might indicate problems with aspects of the
corporate culture that can be addressed before the loss of experienced workers
begins to affect product quality.
What makes a true Balanced Scorecard is the use of the four perspectives and the
KPIs in each perspective representing the metrics that are driving the business. Since
Kaplan and Norton published their original Balanced Scorecard article, variations on
the Balanced Scorecard theme have appeared, and the general term of ???scorecards???
has grown to encompass nearly anything with KPIs. These general, or business,
scorecards may have KPIs from only a single perspective or may include many
perspectives, which may or may not be related to the four perspectives identified by
Kaplan and Norton.
Business Scorecards
A business scorecard is a general term used in this book to identify any scorecard
that is not a true Balanced Scorecard. This includes an enterprise-wide scorecard
that might not have Kaplan and Norton??™s four perspectives, or any lower-level
scorecard that focuses on more narrow KPIs.
Pages:
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124