Budgeting Score Cards Metrics Essay
The Budgeting Score Cards Metrics developed by Wells Fargo’s OFS division follows the same principles of the widely used industry initiative- the Balanced Score Card(BCS). BCS is a structured approach for developing strategic measurement systems. The balanced scorecard approach provides a clear prescription as to what companies should measure in order to balance the financial perspective with other key data attributes, including the voice of the customer.
More than just a measurement system, the balanced scorecard enables organizations to clarify vision and strategy, and translate those into action. The balanced scorecard suggests that an organization be viewed from four perspectives – financial, customer, internal and growth – and that the organization develop metrics, collect data and analyze that data relative to each of these perspectives. (Simpson, R, Carey, B. 2008)
OFS developed the current BSC metrics after experiencing difficulties with 100’s of initiatives needing attention and prioritization and re-prioritization. The metrics are basically based on identifying the initiatives and grouping them as ‘strategic’ and ‘business as usual’. Then the strategic initiatives are further divided into two groups : function-specific and shorter term; and those that are cross-functional, relatively expensive and longer term. A initiative ranking model was used to identify only those
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The 11 initiatives qualified included new products, services and system enhancements. The use of Balanced Score Card Metrics is very prevalent in many industries that are looking for quality and growth oriented initiatives.
Simpson,R., Carey, B(2008). Scorecard Can Balance Different Measures of Success
Kaplan, R., Tempest, N.(1998). Wells Fargo Online Financial Services. Harvard Business Publishing.