<Company Name>
Balanced Scorecard — Financial Metrics
<Date>
Financial Metrics
Financial Objective Type
Revenue growth and mix
Revenue growth and mix
Revenue growth and mix
Revenue growth and mix
Revenue growth and mix
Revenue growth and mix
Revenue growth and mix
Revenue growth and mix
Cost reduction/productivity
Cost reduction/productivity
Cost reduction/productivity
Cost reduction/productivity
Asset utilization
Asset utilization
Asset utilization
Asset utilization
Market performance
Market performance
Measures Targets Supporting Initiatives Q1 Q2 Q3 Q4 Annual Analysis
Sales growth by segment 5% quarterly growth for segment A. VP of sales will hire 2 new sales 4.00% 5.00% 6.00% 5.00% 5.00% Target achieved
representatives to focus on segment A
by January 31.
Percentage of revenue from new products 15% of annual revenue will come from new
product B.
Percentage of revenue from new services 10% of annual revenue will come from new service
C.
Percentage of revenue from new customers 5% of annual revenue will come from new
customer D.
Share of wallet from target accounts Increase wallet share of target account E from
15% to 25% by the end of the year.
Customer profitability Increase profitability in customer segment F from
15% to 20% by the end of the year.
Product profitability Increase profitability of product line G from 20% to
25% by the end of the year.
Percentage of unprofitable customers Reduce the percentage of unprofitable customers
from 10% to 0% by the end of the year.
Revenue per employee Increase revenue per employee from $110,000 to
$115,000 by the end of the year.
Cost reduction rate Increase cost reduction rate by 2% by the end of
the year.
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.
Unit cost per transaction Reduce unit cost per procurement transaction from
$0.75/unit to $.50/unit by the end of the year.
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.
Working capital ratio Increase our working capital from $1,000,000 to
$1,200,000 by the end of the year.
Payback Decrease average payback time on capital
equipment purchases from 9 months to 7 months
by the end of the year.
Throughput Increase throughput from 20 widgets per day to 25
widgets per day by the end of the year.
Economic value added Improve economic value added by 10% by the end
of the year.
Stock price growth Grow stock price by 25% by the end of the year.
<Company Name>
Balanced Scorecard — Customer Metrics
<Date>

Customer Metrics
Customer Objective Type Measures Targets Supporting Initiatives Q1 Q2 Q3 Q4 Annual Analysis
Market share Market share by dollars Increase market share from 15% to 25% by the To increase overall sales, launch 15.00% 18.00% 21.00% 26.00% 26.00% Target exceeded
end of the year in market B. marketing campaign that is targeted to
market A in March.
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.
<Company Name>
Balanced Scorecard — Internal Business Process Metrics
<Date>

Internal Business Process Metrics

Internal Objective Type Measures Targets Supporting Initiatives Q1 Q2 Q3 Q4 Annual Analysis
Innovation Percentage of sales from new products 5% of revenues will come from new products A New markets team will drive sales of 1.00% 2.00% 4.00% 5.00% 5.00% Target achieved
and B. new products through indirect channel.

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.
<Company Name>
Balanced Scorecard — Learning and Growth Metrics
<Date>
Learning and Growth Metrics
Learning Objective Type
Employee retention
Employee retention
Employee retention
Employee satisfaction
Employee satisfaction
Employee satisfaction
Employee satisfaction
Employee satisfaction
Employee satisfaction
Employee productivity
Employee productivity
Employee productivity
Measures
Annual turnover percentage
Voluntary annual turnover percentage
Key personnel turnover percentage
Involvement with decisions
Recognition
Access to information
Encouragement to be creative
Support from staff functions
Overall satisfaction with company
Revenue per employee
Training budget per employee
Competency alignment
Targets Supporting Initiatives Q1 Q2 Q3 Q4 Annual Analysis
Reduce overall turnover from 18% to 15% by end VP of HR will implement new benefits 19.00% 18.00% 17.00% 16.00% 16.00% Progress made; target
of year. and total rewards strategy in Q1. not achieved
Reduce voluntary turnover percentage from 9% to
5% by the end of the year.
Reduce turnover of key personnel from 25% to 5%
by the end of the year.
Based on employee survey, ensure that 75% of
employees feel involved with key decisions by the
end of the year.
Based on employee survey, ensure that 90% of
top-rated employees feel they receive positive
recognition for their achievements.
Based on employee survey, ensure that 100% of
employees know where to find and how to access
information critical to their jobs.
Based on employee survey, ensure that 80% of
employees feel that creativity is encouraged and
that 100% of research team feels encouraged.
Based on employee survey, ensure that 75% of
employees feel that they receive acceptable staff
and administrative support.
Based on employee survey, ensure that 75% of all
employees are satisfied working with the company.
Increase revenue per employee from $120,000 to
$125,000 by the end of the year.
Increase training budget per employee from
$3,000 to $5,000 annually.
For key positions, ensure competency fit is 100%
by the end of the year.