Sustainable Microfinance - Balanced Scorecard's added value for ...

‘Everything is setup to reach the best profitability and we have very bad
measurement systems to check that. One liter of oil, does that represent a cost
or a benefit?’
‘In my opinion the financial dimension should only be serving the other
perspectives. I understand that it is very difficult, but you should do the output
measurement in bags of potatoes or something similar. It is completely
irrelevant if I have made !100.000, -‘
6.2.11. Relation and Link
See paragraph 6.2.1.
6.2.12. Most Important
See paragraph 6.2.1
6.2.13. Measurement and Indicators
Coming back to model and the ‘where’ question, the proposition is to focus on
satisfaction. The goals and objectives have to be set by the entrepreneur during the
sessions with the business advisor, since this is one of the most critical elements of
the BSC and to ensure that they will be measureable. Targets can be very simple
and small, for example for the entrepreneur dimension, the target can be to be able
to eat, maintain the family and pay the rent or mortgage of the house (see figure 6.2).
Figure 6.2: ‘Equally’ Balanced Scorecard for Micro and Small Entrepreneurs (Author)
!
Elmar Hoogendoorn 75
Sustainable Microfinance