Your Neighborhood Community Bank recently decided to adopt a balanced scorecard system of performance evaluation. There is a list of primary performance goals for four major performance categories that have been identified by corporate executives and the board of directors.

Learning and Innovation (improve market differentiation)

Be quicker in the introduction of new products to the market than competitors

Introduce innovation products to customers for enhancement of customer service

Receive recognition in the industry as an innovator

Internal Perspective (improve internal processes)

Enhance employee promotion opportunities

Achieve best practices for processing transactions

Improve employee satisfaction

Customer Perspective (maintain and grow the customer base)

Elevate customer satisfaction

Increase the number of depositors and customer retention

Improve the quality of deposits

Financial Perspective (maintain and grow the bank financially)

Expand customer deposits

Manage financial risk

Generate profits for stockholders

Requirements:

For each of the 12 goals above suggest at least one measure of performance to measure the achievement of the goal.

Address the following questions related to the role of the balance scorecard within an organization like the one described above:

1) How does the Balanced Scorecard help to focus managers attention on strategy?

2) How does a Strategy Map support the Balanced Scorecards purpose? It represents a cause-and-effect diagram of the relationship among the BSC perspectives.

3) Name and briefly explain how two cost management techniques covered in this course can be used to enhance the customer satisfaction element of the Balanced Scorecard?