This document sets forth a balanced scorecard approach to business strategy and
serves as a performance management tool to help companies overcome difficulties in
executing strategy, correct for over-reliance on financial measures, and recognize the
importance of a company’s intangible assets. This document lays out the three primary
steps involved in the balanced scorecard approach to business strategy execution. It
further provides visual aids and flow charts to help a business implement its business
strategy.
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Overview
The balanced scorecard approach to strategy execution involves three primary steps:
1. Pre-Mapping Brainstorm: Thinking through four critical perspectives of business
strategy.
a. The Financial Perspective
b. The Customer Perspective
c. The Internal Business Process Perspective
d. The Learning and Growth Perspective
2. Create a strategy map: This is a one-page graphic depiction of how your company will
create value by identifying what it must do well to execute the strategy.
3. Construct a balanced scorecard that includes the following elements:
a. Goals: The broad essence (like a tag line) of what you are trying to accomplish in
each perspective.
b. Objectives: How the goals can be put into operation.
c. Measures: The criteria used to show evidence of the extent an objective has been
reached.
d. Targets: The specific desired level of achievement for the measures.
e. Initiatives: The actions that need to be taken to achieve the targets.
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Pre-Mapping Brainstorm
THE STRATEGY
Consisting of strategic ideas and goals in each of the four perspectives
Financial Perspective: If we achieve our vision, how will we look to our shareholders?
[Capture your thoughts here.]
Customer Perspective: Who are our customers? What do they want? What is our value
proposition in serving them?
[Capture your thoughts here.]
Internal Business Process Perspective: At which processes must we excel in order to satisfy
our customers?
[Capture your thoughts here.]
Financial Perspective: To enable progress toward our vision, how must our organization and
its employees learn and grow?
[Capture your thoughts here.]
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Strategy Map (Replace all highlighted example text below with your own.)
Maximizing Profitability & Shareholder Value
Sustained
Grow Achieve
double-digit,
alternative optimal
net income
revenue ROIC
growth
streams levels
Enduring Value-Added Relationships
Understand Service Being
Consistently and that pleases involved
deliver the appreciate and retains in customer’s
full-value customer customers community
proposition needs
Amazing Products, Stellar Service & Business Savvy
New Maximize Exercise
Innovative product efficiency best-in-class
marketing & development governance
and
comm. quality and
controls
Well-Prepared & Highly Motivated Workforce
Hire, Employees Employees Foster a
develop, know the have the culture that
recognize, strategy & info & tools rewards
and retain what they they need teamwork &
great people must do to excel initiative
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Balanced Scorecard (Replace all highlighted example text below with your own.)
Goals Objectives Measures Targets Initiatives
1. Sustained 2-digit net 1. Net Income 1. 10%+ 1. Reduce
Maximizing