CUSTOMER PERSPECTIVE

Chapter 4
Customer Perspective
With customer perspective managers and companies have to be careful and
make sure they are setting up their balance scorecard to help customers.

Examples of things that dont concern customers are profit per customer,
revenue per customer, and improve profit per customer.

These objectives dont necessarily protean to the customer perspective but
rather the companies perspective of the customer.

Managers need to take a step back and look at how customers perceive your
company and what they want to get out of your company.
Examples of Customers Perspective
Two main questions that a company should ask itself to protean
to their customers are:

How should we appear to our customers
Do we show a promising future
Do we show a strong sense of concern

What is our differentiating value proposition to our targeted customers
How are we different from our competitors
What makes us better than our competitors







Perspectives of Kaplan and Norton
There are four broad categories that Kaplan and Norton base the
customer perspective around.

Best buy
Companies that supply services and products at low prices and fast service.

Product leadership and innovation
Companies that focus on customer that buy the newest and most advanced cutting
edge technology.

Customer complete solutions
Companies that try to sell things like computers where customers customize them
to their liking.

Lock in
Companies that will make a product then to buy accessories for that product you
have to buy the same brand name because other brands out work with that
product.
INTERNAL BUSINESS PROCESS
PERSPECTIVE
Chapter 5
Internal Processes
Internal business process objectives address the
question of which processes are the most critical
for satisfying customers and shareholders
A firm must concentrate its efforts to excel in these
areas

Metrics based on this prospective allow the
managers to know how well their business is
running and whether its products and services
conform to customer requirements
Internal Process Examples
Cost
Throughput
Quality

Objective Specific Measure
Manufacturing excellence Cycle time, yield
Increase design productivity Engineering efficiency
Reduce product launch delays Actual launch date vs. plan
In addition to the strategic management
process two kinds of business processes may
be identified, these include:

Mission-oriented processes - special functions of
government offices which often involve many
unique problems in their processes

Support processes - more repetitive in nature.
Internal Process
LEARNING & GROWTH
PERSPECTIVE
Chapter 6
The ability to meet ambitious targets for financial,
customer and internal-business-process objectives
depends on organizational capabilities for learning and
growth.
The BSC stresses investing for the future, such as
equipment and R&D investments as well as invest in
infrastructure(people, systems and procedure)
The enablers for learning and growth come primarily
from three sources: employee capability, information
systems capabilities and organizational alignment.
Strategies for superior performance require significant
investment in people, systems and processes that build
organizational capabilities
To set objectives
To determine measures
To predict outcomes
To determine initiatives
To gain the big picture
Uses of the scorecard
Illness rate/days of absence
Employee turnover
Gender/racial ratios
Internal promotion %
Key performance indicators include
Objective: increase internal promotions
Measure: bigger % of in house promotions
Target: +10% in 2 years
Additional classes and training
A learning & Growth example
Learning & growth must
focus on measurable
outcomes to move the
company forward.