Performance indicators specific

to a Balanced Scorecard
Commerce of physical products
The beginning - General Electric 1955
• 1. Profitability (measured by residual income)
• 2. Market share
• 3. Productivity
• 4. Product leadership
• 5. Public responsibility
• 6. Personnel development
• 7. Employee attitudes
• 8. Balance between short-range and long-range objectives
Norton and Kaplan - 1992
1. Financial performance (1),
2. Customer satisfaction (2),
3. Internal processes (3-5) and business
efficency
4. Organisational capacity (6-7), R&D.
Four steps for creating a strategy
1. Industry size / competition – seasonality, potential
customers, specific needs.
2. Added value of our products – why a customer would
choose our products instead of the competitor’s?
3. Resources and capabilities of our company – superior
technology, know how, networking?
4. Maintaining the added value for a longer period - barriers
for market penetration?
Bibliografie
• Robert S. Kaplan (2010), Conceptual Foundations of the Balanced
Scorecard