Page 330 -

296 PART 4 • STRATEGY EVALUATION

2. How well is the firm sustaining and even improving upon its core competencies and
competitive advantages?
3. How satisfied are the firm’s customers?

A sample Balanced Scorecard is provided in Table 9-6. Notice that the firm exam-
ines six key issues in evaluating its strategies: (1) Customers, (2) Managers/Employees,
(3) Operations/Processes, (4) Community/Social Responsibility, (5) Business
Ethics/Natural Environment, and (6) Financial. The basic form of a Balanced Scorecard
may differ for different organizations. The Balanced Scorecard approach to strategy
evaluation aims to balance long-term with short-term concerns, to balance financial
with nonfinancial concerns, and to balance internal with external concerns. It can be an
excellent management tool, and it is used successfully today by Chemical Bank,
Exxon/Mobil Corporation, CIGNA Property and Casualty Insurance, and numerous
other firms. The Balanced Scorecard would be constructed differently, that is, adapted,
to particular firms in various industries with the underlying theme or thrust being the
same, which is to evaluate the firm’s strategies based upon both key quantitative and
qualitative measures.

TABLE 9-6 An Example Balanced Scorecard
Area of Objectives Measure or Target Time Expectation Primary Responsibility
Customers
1.
2.
3.
4.
Managers/Employees
1.
2.
3.
4.
Operations/Processes
1.
2.
3.
4.
Community/Social Responsibility
1.
2.
3.
4.
Business Ethics/Natural Environment
1.
2.
3.
4.
Financial
1.
2.
3.
4.