The Balanced Scorecard

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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.

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

Every measure selected for a Balanced Scorecard should be an element of a chain of cause-and-effect relationships that communicates the meaning of the business unit’s strategy to the organization.

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.

A good Balanced Scorecard should have an appropriate mix of outcomes (lagging indicators) and performance drivers (leading indicators) that have been customized to the business unit’s strategy.

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the cash-to-cash cycle represents the time required for the company to convert cash payments to suppliers of inputs to cash receipts from customers. Some companies operate with negative cash-to-cash

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