Balanced Score Card

Developer Sheila Ammons

 

Performance Measures 

Nova Medical Instruments Company (NVMI) recently revised its performance evaluation system. The company identified four major goals and several objectives required to meet each goal. Ruth Sanchez, controller of NVMI, suggested that a balanced scorecard be used to report on progress toward meeting the objectives. At a recent meeting, she told the managers of NVMI that listing the objective has to be accompanied by one or more measures to monitor progress toward achieving the objectives. She asked the help of the managers in identifying appropriate measures. 

The goals and objectives identified by the top management of ZMIC are:

 

 I.       Maintain strong financial health

        Keep sufficient cash balances to assure financial survival

        Achieve Consistent growth in sales and income

        Provide excellent return to shareholders

 

II.        Provide products that meet the needs of customers

        Provide products that meet the needs of customers

        Meet customer needs on a timely basis

        Meet customer quality requirements

        Be the preferred supplier to customers

 

III.       Be among the industry leaders in product and process innovations

                 Bring new products to market before competition

        Lead competition in production process innovation

        Develop and maintain efficient, state-of-the-art production processes

        Excel in manufacturing efficiency

        Design products efficiently and quickly

        Meet or beat product introduction schedules

Propose at least one measure of performance for each of the 12 objectives proposed by NVMI. Remember, these must be measurable in order to provide a basis for evaluating performance improvement.