Balanced Scorecard

Question description

Required Reading:

This Power Point presentation also explains the balanced scorecard

Read the lecture material “Required Information on Metrics” posted in this week’s module.

Assignment (6%): Part I. Create Balanced Scorecard

1. Build a Balanced Scorecard for the unit of the organization for which you work, or have worked. Unless you are in senior management, focus on the unit with which you are most familiar rather than the organization as a whole. Identify the strategic objectives of the entire organization and the secondary objectives for the unit. Develop three specific objectives within each of the four perspectives for the unit. Each objective should have at least one quantified target metric associated with it.

It is essential to understand what metrics are. Be sure to study the lecture material on “More Information on metrics” In this assignment, the specific information needed to calculate each metric should be explained. For each metric state the appropriate target value and the actions that need to be taken to achieve the target. The paper should be no more than 15 pages, including the reference list, and be formatted in accordance with the APA guidelines as modified for the MBA program ( Please format your paper in Microsoft Word as a XXX.doc or XXX.rtf file, and place the paper in your assignment folder.


Develop three specific objectives within each of the four perspectives for the unit. Each objective should have at least one quantified target metric associated with it. So your table should contain 4 perspectives, each with 3 specific objectives, and a target value of the metric for each objective.

If you would like to see a sample table of metrics, here is one example:

Sample Table of Metrics for an Example Business Unit

Perspective Objective Metric Target Value
Financial Revenue Growth

Operating Profit Growth

Short-term Solvency

Long-term Solvency

Annual Rate of Growth

% EBIT/Sales

Current Ratio

Long-term Debt/Equity

> 6%

> 7%

> 2.0

< 30%

Customer Increase Number of Customers

Maintaining Transaction Size

Improve Customer Satisfaction

Annual rate of Customers Increase

Average Transaction Size

Median Score: Customer Survey

> 5%

> $600

> 90%

Internal Product Improvement

Ratio of New to Old Products

Maintain Market Share

% R&D Expense to Revenue

Ratio of New to Old Products

Market Share %

> 4%

> 8%

> 24%

Learning Employee Training

Employee Turnover

Employee Compensation

Annual Hours of Employee Training

Employee Turnover

Average Compensation

> 30,000

< 3%

> $38,000

Discussion Assignment: Part II (2%). Post Executive Summary of your Balanced Scorecard in this Discussion area

By Friday night, create a separate main topic in the Week 6 Discussion, Balanced Scorecard, using your name in the title and post an Executive Summary in the discussion text. Do not include any confidential information in your Executive Summary because your Executive Summary is not private. But you can include confidential information in your paper because your assignment folder is private. Critique at least two of your classmates’ Executive Summaries in this Week 6 Balanced Scorecard Discussion. All postings must be completed by Sunday midnight.

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