Balanced Scorecard Methodology

Sikich Performance Measurement & Dashboard Consulting utilizes the Balanced Scorecard (BSC – Kaplan & Norton) methodology as the primary basis for facilitating the development of Key Performance Metrics. These Key Performance Indicators then form the web-based Business Dashboard Reporting Services that enable organizations (both profit and not-for-profit) to:

• Drive strategy execution;

• Identify, prioritize and align strategic initiatives;

• Link budgets to strategic outcomes

The term “balanced” is rooted in the rationale is that organizations cannot directly influence financial outcomes, as these are "lag" measures (they tell you what happened in the past).

Financial Perspective

Organizations should measure factors which influence the financial outputs. For example, process performance, market share / penetration, long term learning and skills development of employees. These activities are under the direct control of management and provide “leading” indicators of future performance. BSC methodology categorizes these as:

Customer Perspective

This perspective typically measures both the value that is delivered to the customer (value proposition) which may involve time, quality, performance and service, and cost; and the outcomes as a result of this value proposition (e.g., customer satisfaction, market share).

Operations Perspective

This perspective typically measures the activities and outcomes focused on attaining excellence in execution – driving the value expected by the customers both productively and efficiently. These can include both short-term and long-term objectives as well as incorporating innovative process development in order to stimulate improvement.

Human Capital Perspective

focuses on the intangible assets of an organization, including the skills and capabilities that are required to support the value-creating internal processes – including learning and development, communication, performance driven incentive programs.

What’s on your Dashboard?

A Sikich Management Consultant can assist your organization in determining your key metrics and guiding you to execution through our innovative Performance Measurement Solutions – for more information, contact us at: pmp.team@sikich.com, Tom Bayer, Partner at (217) 793-3363.