The term balanced scorecard may have been popularized by Kaplan and Norton, but their four perspectives on
Question:
The term ‘balanced scorecard’ may have been popularized by Kaplan and Norton, but their four perspectives on performance are not the only ones used by organizations in practice. For example, Siemens uses a balanced scorecard type approach to evaluate its performance. The company calls their reporting framework One Siemens. A summary of the framework on the company’s website shows similar characteristics to a balanced scorecard. The first step shown is the company’s vision: Siemens – The pioneer in: energy efficiency; industrial productivity; affordable and personalized healthcare; intelligent infrastructure solutions.
This is followed by an approach which focuses on three strategic directions: 1 Focus on innovationdriven growth markets; 2 Get closer to our customers; and 3 Use the power of Siemens. Finally, performance measures are used to monitor progress. The graphic below depicts the frameworks as shown on the Siemens website (see the link below).
The three external sides of the framework show three metrics which are primarily financial, revenue growth, capital efficiency and capital structure. The internal portions show areas where non-financial metrics are likely to be more prevalent.
Questions
1 Can you think of a suitable performance metric under the heading ‘Strengthen our portfolio’?
2 And a suitable metric under the heading ‘Encourage lifelong learning and development’
Step by Step Answer:
