Professional Documents
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Financial Metrics
Financial Objective Type Measures Targets Supporting Initiatives Q1 Q2 Q3 Q4 Annual Analysis
Revenue growth and mix Sales growth by segment 5% quarterly growth for segment A. VP of sales will hire 2 new sales 4.00% 5.00% 6.00% 5.00% 5.00% Target achieved
representatives to focus on segment A
by January 31.
Revenue growth and mix Percentage of revenue from new products 15% of annual revenue will come from new product B.
Revenue growth and mix Percentage of revenue from new services 10% of annual revenue will come from new service C.
Revenue growth and mix Ratio of Revenue -Mix between B2B and B2C
Revenue growth and mix Percentage of revenue from new customers 5% of annual revenue will come from new customer D.
Revenue growth and mix Share of wallet from target accounts Increase wallet share of target account E from 15% to
25% by the end of the year.
Revenue growth and mix Customer profitability Increase profitability in customer segment F from 15% to
20% by the end of the year.
Revenue growth and mix Product profitability Increase profitability of product line G from 20% to 25% by
the end of the year.
Revenue growth and mix Percentage of unprofitable customers Reduce the percentage of unprofitable customers from
10% to 0% by the end of the year.
Cost reduction/productivity Revenue per employee Increase revenue per employee from $110,000 to
$115,000 by the end of the year.
Cost reduction/productivity Cost reduction rate Increase cost reduction rate by 2% by the end of the year.
Cost reduction/productivity Indirect expenses as a cost of sales Reduce general and administrative expenses as a
percentage of sales from 15% to 12%, to meet
competitors' expense ratios.
Cost reduction/productivity Unit cost per transaction Reduce unit cost per procurement transaction from
$0.75/unit to $.50/unit by the end of the year.
Asset utilization Research and development as a percentage of sales Increase research and development as a percentage of
sales from 15% to 20% by the end of the year.
Asset utilization Working capital ratio Increase our working capital from $1,000,000 to
$1,200,000 by the end of the year.
Market performance Economic value added Improve economic value added by 10% by the end of the
year.
Customer Metrics
Customer Objective Type Measures Targets Supporting Initiatives Q1 Q2 Q3 Q4 Annual Analysis
Market share Market share by dollars Increase market share from 15% to 25% by the To increase overall sales, launch 15.00% 18.00% 21.00% 26.00% 26.00% Target exceeded
end of the year in market B. marketing campaign that is targeted to
market A in March.
Market share Market share by units Increase the number of units sold to market A from
20,000 to 25,000 by the end of the year.
Market share Percentage of key customers within target market Contract with 75% of all customers within target
vertical C.
Customer acquisition Proposal rate Increase number of proposals from 15% to 20% by
the end of the year.
Customer acquisition Win rate Increase proposal win rate from 15% to 20% by the
end of the year.
Customer acquisition Number of unqualified leads Reduce the number of unqualified leads by 25% by
the end of the year.
Customer retention Key account retention Retain 100% of all named accounts throughout the
fiscal year.
Customer profitability Percentage of unprofitable customers Reduce percentage of unprofitable customers from
10% to 0% by the end of the year.
Customer profitability Customer profitability percentage Increase overall customer profitability from 25% to
30% by the end of the year.
Customer satisfaction Customer satisfaction percentage Increase customer satisfaction (as measured by
external survey) so that 75% of all customers are
"somewhat" or "very" satisfied.
Customer satisfaction Number of unresolved issues Reduce the number of unresolved issues by 50%
by the end of the year.
Customer satisfaction Number of customer returns Reduce the number of returns by 75% by the end
of the year.
Innovation Percentage of sales from proprietary products 10% of annual revenue will come from proprietary
product C.
Innovation New product introductions versus competitors 8 new products will be introduced this year,
compared to 5–7 from primary competitor.
Innovation Time to market for new products New products will be brought to market within 6
months of design inception.
Innovation For new products, time to breakeven point New products will break even within one year after
product launch.
Operations Service quality Project overruns will be reduced from 75% to 20%
by the end of the year.
Operations Purchase price variance Purchase price variance on raw materials will
decrease by 50% by June.
Operations Process cycle time Manufacturing process cycle time will be reduced
from 60 days to 55 days by Q3.
Operations Process cost The cost to produce one unit will decrease from
$35/unit to $32/unit by the end of the year.
Post-sales service Warranty and repair costs Warranty costs will be reduced by 50% by the end
of the year.
Post-sales service Cycle time for warranty and repair issues Warranty issues will by resolved within 20 days by
the end of Q3.
Post-sales service Payment processing cycle time Customer collections will be received within 35
days by April 30.
RCM Group
Balanced Scorecard — Learning and Growth Metrics
5/31/2020
Employee retention Annual turnover percentage Reduce overall turnover from 18% to 15% by end Head of HR will implement new 19.00% 18.00% 17.00% 16.00%
of year. benefits and total rewards strategy in
Q1.
Employee retention Voluntary annual turnover percentage Reduce voluntary turnover percentage from 9% to
5% by the end of the year.
Employee retention Key personnel turnover percentage Reduce turnover of key personnel from 25% to 5%
by the end of the year.
Employee satisfaction Involvement with decisions Based on employee survey, ensure that 75% of
employees feel involved with key decisions by the
end of the year.
Employee satisfaction Access to information Based on employee survey, ensure that 100% of
employees know where to find and how to access
information critical to their jobs.
Employee satisfaction Encouragement to be creative Based on employee survey, ensure that 80% of
employees feel that creativity is encouraged and
that 100% of research team feels encouraged.
Employee satisfaction Support from staff functions Based on employee survey, ensure that 75% of
employees feel that they receive acceptable staff
and administrative support.
Employee satisfaction Overall satisfaction with company Based on employee survey, ensure that 75% of all
employees are satisfied working with the company.
Employee productivity Revenue per employee Increase revenue per employee from $120,000 to
$125,000 by the end of the year.
Employee productivity Training budget per employee Increase training budget per employee from $3,000
to $5,000 annually.
Employee productivity Competency alignment For key positions, ensure competency fit is 100%
by the end of the year.
Financing Requirement
Monthly