Introducing the Balanced Scorecard: Creating Metrics to Measure Performance

This experiential exercise presents the concept of the Balanced Scorecard (BSC) and applies it in a university setting and uses an analogy of a race car driver who relies on one aspect of measurement to gauge the race versus relying on multiple dimensions of performance.

Abstract

This experiential exercise presents the concept of the Balanced Scorecard (BSC) and applies it in a university setting. The Balanced Scorecard was developed 12 years ago and has grown in popularity and is used by more than 50% of the Fortune 500 companies as a performance measurement and strategic management tool. The BSC expands the traditional financial measures into three other dimensions to capture a balanced approach to measure performance in an organization. These additional dimensions are as follows: Customer Focus, Competence/Employee Learning and Growth, and Operational Efficiency. The exercise uses an analogy of a race car driver who relies on one aspect of measurement to gauge the race versus relying on multiple dimensions of performance.