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http://www.netmba.com/accounting/mgmt/balanced-scorecard/
http://www.quickmba.com/accounting/mgmt/balanced-scorecard/
This Power Point presentation also explains the balanced scorecard
Read the lecture material “Required Information on Metrics” posted in this week’s module.
Assignment: Part I. Create Balanced Scorecard
1. Build a Balanced Scorecard for the unit of the organization for which you work, or have worked. Unless you are in senior management, focus on the unit with which you are most familiar rather than the organization as a whole. Identify the strategic objectives of the entire organization and the secondary objectives for the unit. Develop three specific objectives within each of the four perspectives for the unit. Each objective should have at least one quantified target metric associated with it.
It is essential to understand what metrics are. Be sure to study the lecture material on “More Information on metrics” In this assignment, the specific information needed to calculate each metric should be explained. For each metric state the appropriate target value and the actions that need to be taken to achieve the target. The paper should include reference list, and be formatted in accordance with the APA guidelines.
Metrics
Develop three specific objectives within each of the four perspectives for the unit. Each objective should have at least one quantified target metric associated with it. So your table should contain 4 perspectives, each with 3 specific objectives, and a target value of the metric for each objective.
If you would like to see a sample table of metrics, here is one example:
Sample Table of Metrics for an Example Business Unit
Perspective Objective Metric Target Value
Financial Revenue Growth
Operating Profit Growth
Short-term Solvency
Long-term Solvency Annual Rate of Growth
% EBIT/Sales
Current Ratio
Long-term Debt/Equity > 6%
> 7%
> 2.0
< 30% Customer Increase Number of Customers Maintaining Transaction Size Improve Customer Satisfaction Annual rate of Customers Increase Average Transaction Size Median Score: Customer Survey > 5%
> \$600
> 90%
Internal Product Improvement
Ratio of New to Old Products
Maintain Market Share % R&D Expense to Revenue
Ratio of New to Old Products
Market Share % > 4%
> 8%
> 24%
Learning Employee Training
Employee Turnover
Employee Compensation Annual Hours of Employee Training
Employee Turnover
Average Compensation > 30,000
< 3% > \$38,000
Assignment: Part 2. Executive Summary of your Balanced Scorecard
Create a separate main topic in the Week 6 Discussion, Balanced Scorecard, using your name in the title and post an Executive Summary in the discussion text. Do not include any confidential information in your Executive Summary because your Executive Summary is not private. But you can include confidential information in your paper because your assignment folder is private.
Executive Summary
An Executive Summary is a separate document from the main body of your document and must stand alone on its merits. It may be the only page from your report that gets read by top management — so it must be able to “make the case” for your recommendation or proposal. The Executive Summary:
1. Summarizes the main points of a longer document (e.g., a business plan or proposal) and presents the essential issues in the paper: main points, analysis and recommendations. It is NOT an introduction, which would tell what you intend to analyze, not what you found from your analysis. If you are writing “this paper will….,” then you are writing an introduction and not an executive summary!
2. Establishes the need or states the problem; recommends the solution and explains the value of the solution (why the reader should care); provides logical substantiation (your analysis!) for how you arrived at your recommendation.
3. Is written in text, not a bullet-point outline (quality of analyses cannot be shown through bullet points, which lack integrative logical connections among the bullet pointed ideas or data)
4. Should be one page or at most two pages for longer documents. No cut-and-pasting from the main document. Write from scratch so you are not tempted to provide unnecessary details.
Always proofread the executive summary — Ask people who haven’t read the main document to read the summary and comment on it — does it present the idea? Does it show the value? Does it “make the case” for your recommendation or proposal through clear logic based on sound data?
If you wish to explore further, this link is a sample of best resources for how to write a top-notch Executive summary:
http://www.csun.edu/~vcecn006/summary.html

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