The Balanced Scorecard

Core Financial Measures Return-on-investment/economic value-added Profitability Revenue growth/mix Cost reduction productivity Core Customer Measures Market share Customer acquisition

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For example, consider the corporate financial objectives of aggressive revenue growth while maintaining overall margins.

The first barrier to strategic implementation occurs when the organization cannot translate its vision and strategy into terms that can be understood and acted upon.

Kenyon’s CEO used the Balanced Scorecard to create a corporate strategic agenda. Along with the SBU presidents, he defined 10 issues (see Chapters 8 and 12) for which each SBU had to establish its own specific objectives and mechanisms for achievement in their individual Balanced Scorecards. The

Customer retention Customer profitability Customer satisfaction Core Learning and Growth Measures Employee satisfaction Employee retention Employee productivity

The internal objectives led naturally to a final set of factors, on improving employee effectiveness, to implement the revenue growth strategy.

The CEO of Kenyon developed a strategic agenda of 10 items that would be the elements of the strategies for each retail division. The items were distributed across the four perspectives of the Balanced Scorecard, as shown below: Financial 1. Aggressive growth 2. Maintain overall margins Customer 3. Customer loyalty 4. Complete product-line offering

have suggested a classification scheme where businesses can choose financial objectives from themes relating to revenue growth, productivity improvement and cost reduction, asset utilization, and risk management.