Balanced Scorecard

Balanced Scorecard
MGT 521
Sept 11, 2013

Balanced Scorecard
Table 1
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
Quarterly profits were higher than anticipated ($6,000 versus $5,000), Return on Capital Employed was much lower than Organization goal ($1,500 versus $4,000).
Customer
Customer Satisfaction Rate
Customer Recommendation Rate (rate of new business generated by recommendations from existing customers)
95%

80%
95%

100%
Customer Satisfaction was equal to anticipated percentage (95% versus 95%) and Customer Recommendation Rate much higher than anticipated (100% versus 80%).
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%
Duplicate activities across functions was lower than anticipated (20% versus 25%) and Process bottlenecks equal to goal (15% versus 15%).
People
Innovation
Growth Assets

Employee Turnover
Employee Job Satisfaction
25%

90%
0%

50%
Employee turnover was much lower than expected (0% versus 25%) but Employee job satisfaction much lower than anticipated. (50% versus 90%)

Financial

Profits were higher than anticipated but the Return on Capital Employed was well below expected amount. This may well cause Shelly to reconsider her investment in the business. She may desire to search for a partner to buy into the business or an investor to supplement the initial investment. Alternatively, she may reduce the quarterly profits while increasing her the return of her capital employed.

Customer
Customer satisfaction was very high at 95% and matched the organizational goal. The Customer