Balanced Score Card

Balanced Score Card

Balanced Score Card has been proposed and popularized by Robert. S. Kaplan and David. P. Norton. It is a performance tool which “Provides executives with a comprehensive framework that translates a company’s strategic objectives into a coherent set of performance measures”.

The scorecard consists of 4 different perspectives such as:

v  Financial

v  Customer

v  Internal business

v  Innovation and Learning

(i) Financial Perspective                                 

ü  Return-on-capital employed

ü  Cash flow

ü  Project profitability

ü  Profit forecast reliability

ü  Sales backlog

(ii) Customer perspective

ü  Pricing index

ü  Customer ranking survey

ü  Customer satisfaction index

ü  Market share

(iii) Internal Business Perspective

ü  Hours with customers on tender success rate

ü  Rework

ü  Safety incident index

ü  Project performance index

ü  Project closeout cycle

(iv) Innovation & Learning Perspective

ü  % revenue from new services

ü  Rate of improvement index

ü  Staff Attitude survey

ü  Employee suggestions

ü  Revenue per employee.