Balanced Scorecard
Aspect of Company Performance
Factors to be Considered
Organizational Goal
Actual Performance
Gaps
Financial
Quarterly Profit Results
Return on Capital Employed
$5,000
$4,000
$6,000
$1,500
The Quarterly Profit Results exceeded the goal by $1000 (20%). The Return on Capital was below the goal by $2500.
Customer
Customer Satisfaction Rate
Customer Recommendation Rate (rate of new business generated by recommendations from existing customers)
95%
80%
95%
100%
The Customer Satisfaction Rate was at goal. The Customer Recommendation Rate was 20% over goal at a 100% rating.
Internal Processes
Duplicate Activities Across Functions (percent of the activities completed that are duplicated in another function)
Process Bottlenecks (percent of the process that becomes bottlenecked in an average run cycle)
25%
15%
20%
15%
The Duplicate Activities Across Functions ratio is below the goal by 5% (20% vs. 25%). The Process Bottlenecks were meeting the goal of 15%.
People
Innovation
Growth Assets
Employee Turnover
Employee Job Satisfaction
25%
90%
0%
50%
Employee Turnover was better than the 25% goal to a perfect 0%. The Employee Job Satisfaction rating was 40% below the projected 90% rating (50% vs. 90%).
Financial
While the Quarterly Profit Results were greater than expected, the Return on Capital Employed was under the goal drastically. The reduced Return on Capital is not generating enough shareholder value. The additional Profit should be used to reduce the debt and thereby reduce the Return on Capital Employed rating. The other option would be to utilize the profit overage to invest in additional capital assets and thereby increase the return on the capital.
Customer
A job well done should be conveyed to the company for meeting the Customer Satisfaction Rate and Customer Recommendation Rate. The increase in new business directly relates to the great customer recommendation rate. The 100% rating relates that the...