Metrics versus value

In this article, we shall be looking at business success from two perspectives, namely: (a) impact of performance measures or metrics and (b) impact of robust value to customers.

Thirty-one years ago, Harvard Business Review published that landmark discovery on how tracking implementation through metrics can effectively drive business performance. It is called the Balanced Scorecard.

Robert Kaplan and David Norton described the Balanced Scorecard as the comprehensive framework that translates the company’s strategic objectives into a coherent set of performance measures.

The Balanced Scorecard monitors and communicates progress, links every employee’s day-to-day work to the strategy and through this, increases financial health, customer satisfaction, efficiency, knowledge and innovation. It is balanced “because financial and non-financial activities are treated as being equally important”.

This strategic framework delivers focus by tracking business activities through series of…