"Building a Successful Balanced Scorecard Program"

Peter Brewer, Stan Davis, and Tom Albright

Cost Management

January/February 2005, pp. 28-37

This article is divided into four parts:

• A discussion of how the Balanced Scorecard approach can help overcome the usual limitations of traditional control systems
• An eleven-step implementation methodology to help organizations more effectively convert their Balanced Scorecard approach to a strategically-driven set of measures
  1. Define financial goals
  2. Define the customer
  3. Define processes
  4. Define asset inputs
  5. Identify relationships between financial goals and customer value propositions
  6. Identify relationships between customer value propositions and processes that deliver value
  7. Identify relationships between processes that deliver the customer value proposition and assets used in the processes
  8. Select financial measures
  9. Select customer measures
  10. Select internal business process measures
  11. Select learning and growth measures
• An illustration of the above model using a financial institution as the example
• A discussion of considerations to keep in mind when evaluating manager performance using the Balanced Scorecard approach.

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