Does it mention values like...?

Customer or product-
oriented?

Citizenship Teamwork Customer-oriented

No No Score

Excellence Integrity

No No 1.3/4.5

Financial Component

The financial component of the balanced scorecard includes how well the company is doing
financially with revenue and expenses. Financial considerations include salaries, cost of benefits,
training, travel expenses, equipment, supplies, rent and taxes. This information can assist HR in
determining ways to cut costs in certain areas. For example, HR may decide that benefits are a major
portion of revenue and research more economical alternatives. Also, a change in travel policy may
result in less air travel expense.

Customer Component

The customer component of the balanced scorecard includes such areas as customer satisfaction,
delivery of product and quick response to customer issues. Customer concerns can include the quality
of the product and the costs incurred for packing and shipping a product. HR can send out surveys to
customers to determine their levels of satisfaction and concerns. The company can then give attention
to those areas and make immediate improvements if necessary.

Processes Component

The processes component of the balanced scorecard relates to the internal processes the company
uses to get the work done. Such areas as information technology hardware and software may be
considered to determine efficiency in time and cost. Also, the company needs to detail and report
accounting functions according to accounting rules. HR also can identify if the processes, including
recruiting, staffing, orientation and maintaining employees, are providing the desired business
results.

Learning and Growth Component

The learning and growth component of the balanced scorecard refers to how much the company has
learned and improved during the years of operation. In reviewing this area, employee satisfaction and
morale are two critical factors. Other areas include continuous improvement and change. HR can
work to improve weaker areas by developing strong performance improvement and training
programs. Establishing award and recognition programs may be another HR strategy practice
identified by the scorecard.