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Cause and effect: The way perspectives, objectives, and/or measures
interact in a series of cause-and-effect relationships demonstrate the impact
of achieving an outcome. For example, organizations may hypothesize that
the right employee training (Employee, Learning and Growth Perspective) will
lead to increased innovation (Internal Process Perspective), which will in turn
lead to greater customer satisfaction (Customer Perspective) and drive
increased revenue (Financial Perspective).
Comments: Used to provide further information about a performance
management object including questions, issues or background.
Composite Measure: A measure based on a number of performance
measures, weighted to reflect relative importance. Composite measures
provide summary level information to higher management.
Customer-facing operations: Encompasses those facets of the organization
that interface directly with customers; typically an organization’s sales, service
and marketing functions. Customer-facing operations are also referred to as
the demand chain.
Customer Perspective: One of the four standard perspectives used with the
Balanced Scorecard. Measures are developed based on the answer to two
fundamental questions - who are our target customers and what is our value
proposition in serving them? The role of the Customer perspective is often
elevated in public sector and not for profit applications of the Balanced
Scorecard.
Customer Relationship Management (CRM) - CRM entails all aspects of
interaction a company has with its customer. It includes methodologies,
software, and usually Internet capabilities that help an organization manage
customer relationships in an organized way. The Customer Perspective of the
Balanced Scorecard may contain references to a CRM program.
Dashboard: A visualization of important information, often tailored to a
specific role or point of view, consolidated and arranged on a single screen so
the information can be monitored at a glance. For most deployments, this
information contains actual results represented as metrics.
Economic Value Added (EVA): A financial performance measure aiming to
determine whether a company or activity has truly created shareholder value;
in other words, EVA aims to distinguish real profit from paper profit. EVA is
determined by calculating a business’s after-tax cash flow minus the cost of
the capital it deployed to generate that cash flow.
Effectiveness Enhancement System: An approach to performance
management developed by Bacal & Associates. Its strength is that it
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