Page 369 -

352 Chapter 10

1 Financial dimension

Vision and Internal business
2 Customer dimension 4
strategy processes dimension

3 Learning and growth
dimension

Figure 10.2
High-level balanced scorecard

Through the BSC, an organization monitors both its current performance (fi nances,
customer satisfaction, and business process results) and its efforts to improve processes,
motivate and educate employees, and enhance information systems — its ability to
learn and improve. A high-level balanced scorecard is shown in fi gure 10.2 .
Variations in the basic design are common. Typical changes include changes in the
categorization of perspectives (e.g., innovation and learning, or employees, in place
of learning and growth) and the number of perspectives (e.g., adding stakeholders as
a separate, fi fth perspective). Balance is achieved through the four perspectives,
through the decomposition of an organization ’ s vision into business strategy and then
into operations, and through the translation of strategy into the contribution each
member of the organization must make to successfully meet its goals.
The fi nancial dimension typically includes measures such as operating income,
return on capital employed, and economic value added. The customer dimensions
deals with such measures as customer satisfaction, retention, and market share in
targeted segments. The internal business process dimension includes measures such
as cost, throughput, and quality. The learning and growth dimension addresses mea-
sures such as employee satisfaction, retention, skill sets, and so on.
The major steps in applying the balanced scorecard metric are:
1. Translate the KM vision and strategy into measurable goals.
2. Validate these through the establishment of a consensus on the concrete, short-
term, specifi c goals.