Balanced Scorecard - Financial Metrics
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List Data:
Financial Metrics Financial Objective Type
Measures
Targets
Supporting Initiatives
Revenue growth and mix
Sales growth by segment
5% quarterly growth for segment A.
4.00% VP of sales will hire 2 new sales representatives to focus on segment A by January 31.
Q1
Revenue growth and mix
Percentage of revenue from new products
15% of annual revenue will come from new product B.
Revenue growth and mix
Percentage of revenue from new services
10% of annual revenue will come from new service C.
Revenue growth and mix
Percentage of revenue from new customers
5% of annual revenue will come from new customer D.
Revenue growth and mix
Share of wallet from target accounts
Increase wallet share of target account E from 15% to 25% by the end of the year.
Revenue growth and mix
Customer profitability
Increase profitability in customer segment F from 15% to 20% by the end of the year.
Revenue growth and mix
Product profitability
Increase profitability of product line G from 20% to 25% by the end of the year.
Revenue growth and mix
Percentage of unprofitable customers
Reduce the percentage of unprofitable customers from 10% to 0% by the end of the year.
Cost reduction/productivity
Revenue per employee
Increase revenue per employee from $110,000 to $115,000 by the end of the year.
Cost reduction/productivity
Cost reduction rate
Increase cost reduction rate by 2% by the end of the year.
Cost reduction/productivity
Indirect expenses as a cost of sales
Reduce general and administrative expenses as a percentage of sales from 15% to 12%, to meet competitors' expense ratios.
Cost reduction/productivity
Unit cost per transaction
Reduce unit cost per procurement transaction from $0.75/unit to $.50/unit by the end of the year.
Asset utilization
Research and development as a percentage of sales Increase research and development as a percentage of sales from 15% to 20% by the end of the year.
Asset utilization
Working capital ratio
Increase our working capital from $1,000,000 to $1,200,000 by the end of the year.
Asset utilization
Payback
Decrease average payback time on capital equipment purchases from 9 months to 7 months by the end of the year.
Asset utilization
Throughput
Increase throughput from 20 widgets per day to 25 widgets per day by the end of the year.
Market performance
Economic value added
Improve economic value added by 10% by the end of the year.
Market performance
Stock price growth
Grow stock price by 25% by the end of the year.
Q2
Q3
Q4
Annual
Analysis
5.00%
6.00%
5.00%
5.00%
Target achieved
Objective Type Revenue growth and mix Cost reduction/productivity Asset utilization Market performance
List Data:
Customer Metrics Customer Objective Type
Measures
Targets
Supporting Initiatives
Market share
Market share by dollars
Increase market share from 15% to 25% by the end of the year in market B.
To increase overall sales, launch 15.00% marketing campaign that is targeted to market A in March.
Q1
Market share
Market share by units
Increase the number of units sold to market A from 20,000 to 25,000 by the end of the year.
Market share
Percentage of key customers within target market
Contract with 75% of all customers within target vertical C.
Customer acquisition
Proposal rate
Increase number of proposals from 15% to 20% by the end of the year.
Customer acquisition
Win rate
Increase proposal win rate from 15% to 20% by the end of the year.
Customer acquisition
Number of unqualified leads
Reduce the number of unqualified leads by 25% by the end of the year.
Customer retention
Key account retention
Retain 100% of all named accounts throughout the fiscal year.
Customer profitability
Percentage of unprofitable customers
Reduce percentage of unprofitable customers from 10% to 0% by the end of the year.
Customer profitability
Customer profitability percentage
Increase overall customer profitability from 25% to 30% by the end of the year.
Customer satisfaction
Customer satisfaction percentage
Increase customer satisfaction (as measured by external survey) so that 75% of all customers are "somewhat" or "very" satisfied.
Customer satisfaction
Number of unresolved issues
Reduce the number of unresolved issues by 50% by the end of the year.
Customer satisfaction
Number of customer returns
Reduce the number of returns by 75% by the end of the year.
Customer satisfaction
Out-of-stock percentage
Reduce percentage of out-of-stock items by 60% by the end of year.
Q2
Q3
Q4
Annual
Analysis
18.00%
21.00%
26.00%
26.00%
Target exceeded
Objective Type Market share Customer acquisition Customer retention Customer profitability
List Data:
Internal Business Process Metrics Internal Objective Type
Measures
Targets
Supporting Initiatives
Innovation
Percentage of sales from new products
5% of revenues will come from new products A and B.
New markets team will drive sales of 1.00% new products through indirect channel.
Q1
Innovation
Percentage of sales from proprietary products
10% of annual revenue will come from proprietary product C.
Innovation
New product introductions versus competitors
8 new products will be introduced this year, compared to 5–7 from primary competitor.
Innovation
Process capability
A new manufacturing technique will be developed that will improve water consumption for manufacturing process.
Innovation
Time to develop next generation of products
The next generation of product D will be developed within 18 months.
Innovation
Time to market for new products
New products will be brought to market within 6 months of design inception.
Innovation
For new products, time to breakeven point
New products will break even within one year after product launch.
Operations
Product quality
Defects will be reduced from 3 in every 1,000 to 1 in every 1,000 by June.
Operations
Service quality
Project overruns will be reduced from 75% to 20% by the end of the year.
Operations
Labor efficiency
Throughput will be maintained at the same level with 10% fewer resources.
Operations
Machine efficiency
Machine E's capacity will be upgraded to handle 20,000 units per hour by March.
Operations
Purchase price variance
Purchase price variance on raw materials will decrease by 50% by June.
Operations
Process cycle time
Manufacturing process cycle time will be reduced from 60 days to 55 days by Q3.
Operations
Process cost
The cost to produce one unit will decrease from $35/unit to $32/unit by the end of the year.
Post-sales service
Warranty and repair costs
Warranty costs will be reduced by 50% by the end of the year.
Post-sales service
Cycle time for warranty and repair issues
Warranty issues will by resolved within 20 days by the end of Q3.
Post-sales service
Payment processing cycle time
Customer collections will be received within 35 days by April 30.
Q2
Q3
Q4
Annual
Analysis
2.00%
4.00%
5.00%
5.00%
Target achieved
Objective Type Innovation Operations Post-sales service
List Data:
Learning and Growth Metrics Learning Objective Type
Measures
Targets
Employee retention
Annual turnover percentage
Reduce overall turnover from 18% to 15% by end VP of HR will implement new benefits 19.00% of year. and total rewards strategy in Q1.
Supporting Initiatives
Q1
Employee retention
Voluntary annual turnover percentage
Reduce voluntary turnover percentage from 9% to 5% by the end of the year.
Employee retention
Key personnel turnover percentage
Reduce turnover of key personnel from 25% to 5% by the end of the year.
Employee satisfaction
Involvement with decisions
Based on employee survey, ensure that 75% of employees feel involved with key decisions by the end of the year.
Employee satisfaction
Recognition
Based on employee survey, ensure that 90% of top-rated employees feel they receive positive recognition for their achievements.
Employee satisfaction
Access to information
Based on employee survey, ensure that 100% of employees know where to find and how to access information critical to their jobs.
Employee satisfaction
Encouragement to be creative
Based on employee survey, ensure that 80% of employees feel that creativity is encouraged and that 100% of research team feels encouraged.
Employee satisfaction
Support from staff functions
Based on employee survey, ensure that 75% of employees feel that they receive acceptable staff and administrative support.
Employee satisfaction
Overall satisfaction with company
Based on employee survey, ensure that 75% of all employees are satisfied working with the company.
Employee productivity
Revenue per employee
Increase revenue per employee from $120,000 to $125,000 by the end of the year.
Employee productivity
Training budget per employee
Increase training budget per employee from $3,000 to $5,000 annually.
Employee productivity
Competency alignment
For key positions, ensure competency fit is 100% by the end of the year.
Q2
Q3
Q4
Annual
Analysis
18.00%
17.00%
16.00%
16.00%
Progress made; target not achieved
Objective Type Employee retention Employee satisfaction Employee productivity
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