Enhancing Balanced Scorecard Metrics

Enhanced balanced scorecard metrics that can provide a prediction statement are available through the Integrated Enterprise Excellence (IEE) business management system.

Enhancing Balanced Scorecard Metrics

The balanced scorecard, was presented in a 1992 Harvard Business Review article by Kaplan and Norton. The balanced scorecard tracks the business in the areas of financial, customer, internal processes, and learning and growth. It is important to have scorecard balance because if you don’t have balance you could be giving one metric more focus than another, which can lead to problems.

For example, when focus is given in a scorecard to only on-time delivery, product quality could suffer dramatically to meet ship dates. However it is important that care be given in how this balance in scorecards is achieved. A natural balance is much more powerful than forcing balance through the organizational chart using a scorecard structure of financial, customer, internal business process, and learning and growth, which may not be directly appropriate to all business areas.

In addition, one needs to keep in mind that a scorecard structure that is closely tied to the organization chart has an additional disadvantage in that it will need to be changed whenever significant reorganization occurs.

Integrated Enterprise Excellence (IEE) is a sustainable business management governance system, which integrates business scorecards, strategies, and process improvement so that organizations move toward the three Rs of business (everyone is doing the Right things and doing them Right at the Right time).

The IEE enhanced balanced scorecard metrics address the issues described in a 1-minute video:

 

balanced scorecard metrics one minute video

 

IEE is a system that goes beyond Lean Six Sigma and the Balanced Scorecard, as described in the PDF article that is available below.

 

Contact Us to set up a time to discuss with Forrest Breyfogle how your organization might gain much from IEE enhanced balanced scorecard metrics.