A Balanced Scorecard empowers an organization’s strategy with focus and purpose (Chow, 1997). When Kaplan and Norton developed the Balanced Scorecard method they were focused on finding a way to identify organization’s indicators for strong future performance (Chow, 1997). Things like past accounting or previously successful product development approaches are not going to help predict the future market trends or tell much about what actually helped grow an organization’s market share (Chow, 1997). The Balanced Scorecard approach leverages the idea that one may identify useful information when historically unambiguous, and objective goals are combined with some non-financial signals (Kaplan & ...view middle of the document...
These perspectives in a Balance Scorecard are customer, innovation, internal business, and financial (Chow, 1997). Each perspective is examined using standards or goals, metrics for evaluation, and initiatives to improve or expand current success. Measures for each perspective should be derived from the business-unit’s unique strategy and translate to the company’s vision and strategy (Kaplan & Norton, 1996).
Balanced Scorecard Analysis and Metrics of Blu.
Blu is focused on increased customer value as its primary driver for financial strategy. The financial perspective of Blu serves as the focus for the objectives and measures in the other scorecard perspectives (Chow, 1997). Each perspective in the Balanced Scorecard describes financial objectives which then link back to the overall driver for Blu strategy: lowering the cost of LNG trucks and increasing the number of customers using Blu fueling stations. Blu leadership has defined several high-level cause-and-effect relationships between customer value and Blu meeting financial targets.
The Blu strategy can then, be described through a set of hypotheses about cause and effect linked to the overall customer value:
• If Blu reduces the cost of LNG trucks, then current customers will purchase more LNG trucks and current stations will...