Customer balanced scorecard

The Balanced Scorecard -

That is, only through the ability to launch new products, create more value for customers, and improve operating efficiencies continually can a company penetrate new markets and increase revenues and margins—in short, grow and thereby increase shareholder value.If sales from new products are trending downward, managers can explore whether problems have arisen in new product design or new product introduction.Survival was measured by cash flow, success by quarterly sales growth and operating income by division, and prosperity by increased market share by segment and return on equity.With this innovation, it was easy to see where process improvements and capital investments could generate the highest returns.The company developed operational measures for each of these four internal business goals.

Successfully Implementing the Balanced Scorecard Jim Self Donna Tolson University of Virginia Library Library Assessment Conference Seattle, WA August, 2008.In their zeal to delight customers, these companies actually lose money with them.Managers should be prepared to either put the excess capacity to work or else get rid of it.The Balanced Scorecard introduced customer metrics into performance management systems.The Balanced Scorecard is a framework that is used to help in the design and implementation of strategic performance management tools within.

The balanced scorecard requires specific measures of what customers get—in terms of time, quality, performance and service, and cost.Tailoring a Balanced Scorecard for your Customer Service Offering that Strengthens your Brand.An excellent supplier may charge a higher unit price for products than other vendors but nonetheless be a lower cost supplier because it can deliver defect-free products in exactly the right quantities at exactly the right time directly to the production process and can minimize, through electronic data interchange, the administrative hassles of ordering, invoicing, and paying for materials.Kaplan David Norton and I introduced the Balanced Scorecard in a 1992 Harvard.

Companies often capture additional business by offering more services.This new approach to performance measurement is consistent with the initiatives under way in many companies: cross-functional integration, customer-supplier partnerships, global scale, continuous improvement, and team rather than individual accountability.

Balanced scorecard | The Economist

The customer balanced scorecard is a new instrument aimed at improving customer intimacy.Shareholder value analysis (SVA), which forecasts future cash flows and discounts them back to a rough estimate of current value, is an attempt to make financial analysis more forward looking.An important part of the balanced scorecard concept is the emphasis on establishing a balance between four types of measurements.But customers see price as only one component of the cost they incur when dealing with their suppliers.What you measure is what you get: the measures you use strongly affect the behavior of your managers and employees.

The excess capacity must be either used by boosting revenues or eliminated by reducing expenses if operational improvements are to be brought down to the bottom line.


The company developed two customer-based metrics for its operations: equipment up-time percentage and mean-time response to a service call.

The scorecard puts strategy and vision, not control, at the center.The format of a balanced scorecard can vary, depending on the data, the company and the industry.ECI saw the scorecard as a way to clarify, simplify, and then operationalize the vision at the top of the organization.

Balanced Scorecard - ASQ

Each menu item has a price that at least cover its cost, as measured by the ABC model, so the company no longer suffers losses from offering customized services.Information systems play an invaluable role in helping managers disaggregate the summary measures.The department managers and operating personnel who now had access to massive amounts of real-time operational data found their monthly financial reports to be irrelevant.They measure continual improvements to existing products and processes and introduction of new products with expanded capabilities.The company can ask the customer to use electronic channels, such as Electronic Data Interchange (EDI) and the Internet, that greatly lower the cost of processing large quantities of small customer orders.

Fortunately, a new approach is now available that is far simpler and much more powerful than traditional ABC.View Customer Perspective online But who is the customer in this case.

Finally, perhaps a customer is unprofitable because it is purchasing only a single service.The second part of the balanced scorecard gives managers that internal perspective.Customer Scorecard is part of the Customer Lifecycle Marketing business process.A computer manufacturer wanted to be the competitive leader in customer satisfaction, so it measured competitive rankings.