Strategy and analysis

Balanced Scorecard

Rank performance drivers across the four Balanced Scorecard perspectives — Financial, Customer, Internal Process, and Learning & Growth.

What the framework is

The Balanced Scorecard looks at an organisation from four perspectives: Financial, Customer, Internal Process, and Learning & Growth. Robert Kaplan and David Norton introduced it in 1992, so that performance would not be judged on money alone. Each perspective gets a few objectives, and each objective a measure.

What the result looks like

EXAMPLE
Which performance drivers should we focus on?

Financial

Win rate
01
Grow recurring revenue
83%
20 Wins · 4 Losses
02
Reduce cost to serve
42%
10 Wins · 14 Losses
03
Improve cash flow
25%
6 Wins · 18 Losses

Customer

Win rate
01
Faster response times
71%
17 Wins · 7 Losses
02
Higher retention
50%
12 Wins · 12 Losses
03
Better onboarding
29%
7 Wins · 17 Losses

Internal Process

Win rate
01
Automate reporting
63%
15 Wins · 9 Losses
02
Shorten delivery time
54%
13 Wins · 11 Losses
03
Improve quality checks
33%
8 Wins · 16 Losses

Learning & Growth

Win rate
01
Leadership development
79%
19 Wins · 5 Losses
02
Cross-team skills
46%
11 Wins · 13 Losses
03
Knowledge sharing
25%
6 Wins · 18 Losses

When it earns its place

Use it when setting annual objectives, when a strategy needs turning into measures, or when an NGO or member organisation must show more than its budget. The hard part is not filling four boxes. It's choosing the few objectives per box that the organisation will actually track.

The usual failure is twenty objectives per perspective, none of them measured by the following year.

How to run it with a group

  1. List three to six candidate objectives in each of the four perspectives.
  2. Participants work through the perspectives one at a time. In each, they compare objectives two at a time. Participants do not need an account to respond.
  3. Invite people from each part of the organisation, since each perspective belongs to someone different.
  4. Keep the top two objectives per perspective, and give each an owner and one measure before the session ends.

Get started