methods adopted vary. At Lloyds TSB the balanced scorecard blends a mix of finan-
cial metrics and non-financial indicators to provide a single integrated measure of
performance that focuses on key indicators, from which a true reflection of organiza-
tion performance can be accomplished. The scorecard thus enables the organization
to focus on a small number of critical measures that create value for the organization.
Norwich Union Insurance describes its balanced scorecard as a ‘mechanism for
implementing our strategy and measuring performance against our objectives and
critical success factors to achieve the strategy’. The scorecard is cascaded throughout
the organization to measure the operational activities that are contributing to the
overall company strategy. The balanced scorecard changes from year to year. Most
recently, it set out to achieve three goals: positive benefit, staff impacts and financial
performance – in short, service, morale and profits. Previously, the emphasis was
Human capital management ❚ 43
Customer perspective
How do customers see us?Internal perspective
What must we excel at?Financial perspective
How do we appear to our
shareholders?Innovation and learning
(people) perspective
Can we continue to improve
and add valueFigure 2.2 The balanced scorecard