CHAPTER 2

A scorecard is a description of a business logic, using metrics in several perspectives in a systematic way. The simplest one we have seen remains Halifax's Theory Z, which we reported on in Performance Drivers: "If we have the right staff (Development perspective) doing the right things (Process perspective), then the customers will be delighted (Customer perspective), and we will keep and get more business (Financial perspective)". This pattern is just one among several possible paths through the figure. For another company development may be about improving the customer base; for yet another improving internal efficiency with unchanged service performance. The important thing is that the scorecard tells the story of the intended business logic.

Every organization should pursue a unique strategy, based on its interpretation of the external and internal situation. This may of course combine a few such paths through the scorecard. To clarify this, it is often easier to draw the scorecard as a strategy map (Kaplan & Norton, 2001).