Balanced Scorecard

1. What gets measured gets done

2. Shortcomings of financial measures A lagging indicator Most financial measures tell you how the organisation has been doing in the past - they tell you little about how it will do in the future. Leading a company on the basis of financial measures has been compared to piloting a speedboat by looking at the wake.

3. Paradox of success According to the research carried out by Jim Collins and Jerry Porras, and published in Built to Last, those organisations that are the most successful in financial terms are often those that do not focus on financial success as the primary goal, but who see financial stability merely as a means to achieving some more ‘noble’ goal.

4. THE BALANCED SCORECARD

5. Financial perspective Turnover Profit Cash Net worth Share value Return on investment

7. Customer loyalty

8. Market share

9. Customer acquisition

10. Customer profitability

12. Employee satisfaction and learning perspective Employee satisfaction Employee turnover Employee productivity Employee competence