06/22/2009 Council Packet - Laserfiche WebLink

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BALANCED SCORECARD The Balanced Scorecard is a strategic planning and management system that is used extensively in business and industry, govemment, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. It was originated by Drs. Robert Kaplan (Harvard Business School) and David Norton as a performance measurement framework that added strategic non - financial performance measures to traditional financial metrics to give managers and executives a more 'balanced' view of organizational performance. The Balanced Scorecard is a method of organizational performance measurement that allows leaders to look at the performance of an organization from four important perspectives: > Financial Perspective: This perspective looks at adding value while controlling costs. > Customer Perspective: This perspective looks at defining customers (residents, business owners, etc.) and finding value for them. If customers are not satisfied, they will eventually find other places to live and work that will meet their needs. > Internal Process Perspective: This perspective refers to intemal business processes. Metrics based on this perspective allow leaders to know how well their organization is running, and whether its products and services conform to customer requirements (the mission). Focusing on excelling at key processes to satisfy customers while meeting budgetary constraints. > Learning & Growth Perspective: This perspective includes employee training and organizational cultural attitudes related to both individual and organizational self- improvement. How do employees grow and change in order to meet changing demands? The following Strategic Goals for the City of Lino Lakes were partially developed using this Model. 14