Strategy Development and Management
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Financial Perspective
Typical Financial Perspective measures include: revenue and cost which, when taken together, reflect your profit or loss. Other measures can include things such as revenue from new members, etc.

Customer Perspective
Before establishing Customer Perspective measures, it is important to separate customers into target segments. An organization can’t be all things to all people, so target setting is wrapped up with market segmentation.

Since they provide the cash flow for the organization, you want to get, keep, and grow the right customers. Attracting new customers is more diffcult and expensive than retaining existing ones, so you need to target those who will value what your organization produces. Keeping existing customers loyal through satisfaction with your services is more effective. Most eVective of all is growing customers; that is, offering additional services to existing customers that generate additional revenue.

Typical measures include: total number of customers, number of new customers, percentage of repeat customers, satisfaction ratings (via surveys), percentage of total target market.

Internal Business Processes Perspective
Typical Internal Business Processes measures include the time, unit cost and quality of the organization’s operations. For example, from a presenter’s point-of-view, the main product produced is a performance, which has a unit cost including all of the administration, production and artist costs. Other measures could include: number of annual performances, number of performances in a first-attempt genre, average ticket price, etc.

Learning & Growth Perspective
Finally, measure the infrastructure for long-term growth and improvement from three main sources: people, systems and organizational procedures. Typical Learning & Growth measures include: employee satisfaction, employee turnover, numbers of suggestions received, number of suggestions implemented, and availability of online information.

Ongoing Strategic Review
While the Balanced Scorecard seems to be all about numeric results, it is actually a keeper of the insights of the strategies derived by the organization. Its real strength lies in its ability to trigger the ongoing review of strategic execution in order for the organization to continuously learn and grow.

If the numbers aren’t coming in as planned, is it because the original hypothesis was wrong or because the execution hasn’t been adequate? This isn’t intended to foster a witch-hunt but rather to highlight issues early in order to make changes as appropriate. Failure should be applauded if it leads to new learning and new directions: fail faster, succeed sooner.

Going over the numbers forms the key to successful review meetings. (I actually use it to structure agendas: start with the Financial results, followed by Customer results, Internal Business Processes results and Learning & Growth results. It really does help to keep everyone’s mind focused on the future success of the organization.)

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