<Company Name>

Balanced Scorecard Financial Metrics

<Date>

Financial Metrics
Financial Objective Type

Measures

Targets

Supporting Initiatives

Revenue growth and mix

Sales growth by segment

5% quarterly growth for segment A.

VP of sales will hire 2 new sales

4.00%
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

<Company Name>
Balanced Scorecard Customer Metrics
<Date>

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

<Company Name>
Balanced Scorecard Internal Business Process Metrics
<Date>

Internal Business Process Metrics

Internal Objective Type

Measures

Targets

Innovation

Percentage of sales from new products

5% of revenues will come from new products A and New markets team will drive sales of
1.00%
B.
new products through indirect channel.

Supporting Initiatives

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 57 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

<Company Name>
Balanced Scorecard Learning and Growth Metrics
<Date>

Learning and Growth Metrics

Learning Objective Type

Measures

Targets

Supporting Initiatives

Q1

Q2

Q3

Q4

Annual

Analysis

Employee retention

Annual turnover percentage

Reduce overall turnover from 18% to 15% by end

of year.

VP of HR will implement new benefits

and total rewards strategy in Q1.

19.00%

18.00%

17.00%

16.00%

16.00%

Progress made; target

not achieved

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.