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.