The Balanced Scorecard typically only
has five or six KPIs per perspective, so the KPIs are usually very general and highly
aggregated. A gross revenue value in a Balanced Scorecard is for all products, while
a product manager might want to analyze such a value broken down by product
categories or subcategories.
C h a p t e r 4 : S c o r e c a r d s a n d K e y P e r f o r m a n c e I n d i c a t o r s 73
Sometimes a business scorecard is even narrowly focused on a single problem,
but the nature of scorecards makes them an effective way to solve the problem.
Chapter 1 discussed a scorecard that was built for a nonprofit organization.
Technically, there were only two true KPIs: Expenses Per Patient Day and Number
of Patient Days. However, a number of KPIs were created. There was the Number
of Patient Days KPI, and the overall Expenses per Patient Day. In addition, there
was a Rent per Patient Day, Food per Patient Day, Utilities per Patient Day, and
so on, with approximately twenty expense categories getting their own KPIs. The
screen was presented with each facility showing just two KPIs and an overall score.
One KPI was for the Expenses per Patient Day and the other was for the Number
of Patient Days. Each facility could then be expanded to see the individual expense
KPIs rolled up into the Expense per Patient Day KPI. In true scorecard fashion,
some expenses were deemed more controllable than others and those expenses had
higher weights when contributing to the overall score.
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