Customising Scorecards

The balanced score card is a technique used for managing a company's performance across four key perspectives;

1. Learning and Growth
2. Internal Processes
3. Customer Perspective
4. Financial Perspective

The original Kaplan Norton balanced score card has undergone several generational changes from the time it was first presented in the late eighties. Current 'Balanced Scorecards' in use in the market place are sometimes referred to as  ‘Third Generation Scorecards’, as they incorporate the learning from the successes and failures in implementing score cards over the years, across the international market place and a wide range of industry sectors.

Third generation scorecards incorporate a number of additional techniques including the design of 'Destination Statements' for choosing strategic objectives and even the selection of measures and targets from the experience of dot.com industry. The BSC in its third generation format includes such diverse and essential tools as strategy mapping and measuring wealth through overarching measures like EVA  etc.

Key benefits from managing performance using a third generational scorecard are:

1. They translate the firms strategy into measurable parameters;
2. They communicate the strategy to all staff  in the firm and allow them to contribute to the planning and to take ownership of the strategies of the firm;
3. They align the individual goals of employees with the firm's strategic objectives;  third generation scorecards recognise that the selected measures influence the behaviour of employees.
4. Feedback from the scorecard implementation is incorporated into the strategic planning process.

The Business Farm specialises in managing performance and in designing 3rd generation Balanced Score cards, Strategy Mapping and Financial Variance management for SME's and large companies in Australia and New Zealand.