Free Sample Balanced Scorecard Template for Download

Get a free sample balanced scorecard you can edit to suit your own needs.

This balanced scorecard template was written to save you and your company the time and money it would take to write your own from scratch. It was formulated for a bank but can easily be adjusted to meet the needs of any institution. You can download the free properly formatted document in Word. Read the balanced scorecard overview below.


Balanced Scorecard Example Overview

An overview of the balanced scorecard by Visum Solutions, Inc. & Organization Thoughtware International states as follows: The balanced scorecard is an organizational framework for implementing and managing strategy at all levels of an enterprise by linking objectives, initiatives, and measures to an organization's strategy. The scorecard provides an enterprise view of an organization's overall performance. It integrates financial measures with other key performance indicators around customer perspectives, internal business processes, and organizational growth, learning, and innovation. Since the concept was introduced in 1992, balanced scorecards have been implemented at corporate, strategic business unit, shared service function, and individual levels at hundreds of organizations in both the private and public sectors - worldwide.

Visum Solutions, Inc. & Organizational Thoughtware International further stated that the balanced scorecard has been proved to be a powerful performance management framework. However, a successful roll-out should allow to think differently, better achieve a cultural transition and get the larger group to move in the same direction. Success can be achieved by using the balanced scorecard as a strategic navigational chart - which will balance the scorecards, link the scorecards to the enterprises' strategic direction, and institutionalize the scorecards within the organizations. Read the balanced scorecard sample.


Balanced Score card Sub-sections

Lafferty Publications suggested that the most distinctive feature of the balanced business scorecard is that it is divided into a number of sub-sections. Kaplan and Norton initially divided theirs into four: financial; customer; internal business; and innovation and learning. They said he principle is that any sensible strategy will have all these separate components.

Visum Solutions, Inc. & Organizational Thoughtware International described these components under the headings: financial perspective, customer perspective, internal perspective, and learning and growth perspective.


Financial Perspective

Every measure ultimately ties to financial results. There are only two ways to improve financial performance. Either grow the top line, Revenue Growth, or produce with less, Productivity.

  • Revenue growth comes from either the growing wider (new products, markets, and/or customers), and/or from growing deeper by achieving more price or volume from existing relationships.
  • Productivity comes from reducing the cost structure, and/or reducing the fixed and working capital required to support the business.

Note: There is always a time element to strategy, and a good scorecard/strategic navigational card is balanced - balanced between the longer and shorter term. For example, productivity usually provides results quicker, but at what expense to revenue growth?


Customer Perspective

In so far as we have determined that the strategy of any company is a cause-and-effect hypothesis, we need now ask "what can we do (cause to happen) to increase (effect) our revenue from new and existing customers"? In other words, why would people buy from us? How do we differentiate ourselves from the competition? The business gurus refer to this as the company's value proposition. There are three generally acknowledged generic value propositions (see Treacy, Michael and Fred Wiersema, The Discipline of Market Leaders, Addison-Wesley, 1995):

  • Operational Excellence is characterized and differentiates itself by a combination of products/services that provide quality, selection, and competitive prices, and order fulfillment capability that is fast and timely.
  • Customer Intimacy is characterized and differentiates itself by the quality and personalization of its relationship with its customers.
  • Product Leadership is characterized and differentiates itself by the functions, features, and overall performance of its products and services.

Note: The value proposition of the balanced scorecard connects the internal processes to the improved customers with the customers.


Internal Perspective

With the financial perspective and customer perspectives in place, it is time to discuss how we intend to "make it so". If we fail to deploy this properly, we will also fail to "walk the talk". "Touchy-feely" stuff, like "innovation" and "value added to customers" and "total quality" become no more than that - "touch and feel". They only become "real" when the business process required to deliver "innovation", "value added to customers" and "total quality" are measured. After all, if you have no way of knowing whether or not you achieved your goal - it is just an idea. Until we belly up and measure this "difficult stuff" that matters, and not just the easy stuff that is comfortable, we are a philosophy without technique. We have no methodology, and therefore, we cannot implement the strategy. In our standards there are four internal processes. Perhaps one could argue there are more, but the debate is at the margin. The human body, as complex as it is, only has seven core processes and only two of those are vital for life support. Surely our organizations are no more complex than the human body. These processes include:

  • New Products/Services Introduction Process, which includes building the business through innovation (including the creation of new markets and few customer segments).
  • Customer Relationship Management Process is an organizational commitment and strategy to continuously develop ever-deeper relationships with customers.
  • Order Entry to Order Fulfillment Value Stream Process is the delivery of customer value in a continuous flow manner through the sub process of demand generation, supply chain management, information conversion, material conversion, and demand fulfillment while optimizing the operational imperatives of time (asset utilization), cost (capacity management) and quality. Essentially delivering the right service or product to the right spec at the right time.
  • Corporate Citizenship Process includes the building and maintenance of relationships with outside shareholders, e.g., regulators, environmental entities, law-enforcers, citizens, etc.

Learning and Growth Perspective

This is the future perspective or how the business will look in the fullness of time. This is the foundation and critical point of leverage and the point where the implementation becomes possible. Precious few organizations seem to reach this point. The leverage point appears too far from the financial objectives and the cause-and-effect linkage is not a direct line of sight. However without this piece, the "story of the strategy" is incomplete. The learning and growth perspective can be addressed in three critical areas:

  • Core Competencies and Skills of the employees are fundamental. With a human capital investment plan that is n context with the strategy, the return will be significant. Any development and training that is not aligned will probably be no more than a company expense. In an era where knowledge workers are the lifeblood of the business, the generation, development, reward, and maintenance of core competencies is fundamental.
  • Enabling Technology is required to leverage the core competencies. The technology can be managing the routine and repeatable events while the human capital can be applied to the circumstantial, unique and critical. The enabling technology can be likened to the banks ATM machine, handling the predictable and repetitive, leaving the human capital to manage relationships, and personalized needs.
  • Corporate Culture is the every day assumptions we carry to our business. The culture will respond to the Strategic Navigational Chart if it makes sense and is communicated. After all, what gets measured gets done. Rather than trying to connect to the distant and seemingly uncontrollable concepts of shareholder equity and customer delight, the organization known what its particular role is in contributing to those lofty ideals, by understanding its place in the cause-and-effect hypothesis.

Lafferty Publications explained the attributes of a successful scorecard under the heading as follows:


The Attributes of a Successful Scorecard

Rick Anderson of BP, a company with extensive experience of implementing scorecards, has outlined five basic requirements for a good scorecard. It should be acceptable, suitable, feasible, effective and aligned. They summarized the following other attributes:

  • the score should be able to accurately embody the firm's strategy;
  • it should not be over-financial;
  • it should be implementable;
  • it should be the subject of a learning process;
  • most importantly, it should be balanced.

Thanks to Lafferty Publications, as well as Visum Solutions, Inc. & Organization Thoughtware International for the information presented on this balanced scorecard page. Back to balanced scorecard overview.


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