ERGOMETRICS

Balanced Scorecard

Balanced Scorecard is a comprehensive system that allows the monitoring of business performance in a way that compliments financial measures. By measuring and monitoring operational efficiency, employee performance and innovation, customer satisfaction, as well as financial performance, long term strategies can be linked to short term actions.

Your Balanced Scorecard should:

Include financial and non-financial measures
Focus management activity on key performance indicators
Align departmental goals with corporate strategy
Link measures throughout the organisation
Allow senior management to consider all measures together
Reflect your commitment to customer service
Be managed to prevent the proliferation of unneeded measures
Be shared with as many staff as is practicable

At the core of your Balanced scorecard should be the "sharing of the corporate vision".

The corporate vision should set the strategy and the strategy should "drive" the components of the scorecard.

When setting measures you should ask what are the "Survive and Succeed" criteria in each area.

Financial Perspective	Organisational Perspective
Cashflow (Survive) Sales Growth (Succeed) Market Share Growth (Succeed)	Staff Stability (Survive) Staff Learning (Succeed) Knowledge growth (Succeed)
Customer Perspective	Operational Perspective
Customer Satisfaction (Survive) Responsive Supply (Succeed) New Product Introduction (Succeed)	Product Quality (Survive) Productivity (Succeed) Innovation (Succeed)

ERGOMETRICS simplifies the building of a Balanced Scorecard based on corporate Key Performance Indicators and delivers performance information in a readily understood format that can be used to accelerate the business process.

In the example below the company has identified the key performance areas to be reported. Each is given it's own panel and each panel has gauges representing Key Performance Indicators. Gauges have been selected depending on whether low values (Product Returns) or high values (Share Price) are being reported. Each gauge is divided into Performance Sectors (the outer rim) and also has a Trend Panel (the inner half circle).

The sensitivity of trend reporting is set by the company. This allows fluctuations in performance to be reported specifically for each Key Performance area. The three needles indicate the latest three periods being reported. At any time the user can go back to previously reported periods by changing the date to be reported (simply select from the Measurement Period drop box).

This unique method of building and reporting Balanced Scorecard will accelerate your business performance and be a pivotal tool in sharpening your competitive edge.