When describing both the Financial and Customer perspectives we typically focus primarily on the “what” of strategy, i.e. What are we ultimately attempting to achieve in our pursuit of executing this strategy? Revenue growth, productivity enhancements, customer satisfaction, and retention are all outcomes towards which you may be striving. When we enter the realm of the Internal Process perspective we veer sharply from the “what” to the “how” of value creation. This perspective describes specifically how you will achieve the customer value proposition articulated in the Customer perspective, and, ultimately, how you will enhance revenue and increase efficiency as measured in the Financial perspective.
Given that every organization is unique and relies on dozens if not hundreds of processes, it is not surprising that the Internal Process perspective will spawn the greatest number of measures in most Scorecards. For many organizations, the choices seem endless, sort of the way I feel when my wife invites me to participate on a home decor choice! Of course, if we make a poor decorating choice the ramifications are relatively insignificant, although my wife might disagree. The same is not so for organizations. The selection of Internal Process measures is critical in weaving together the disparate pieces of strategy into a coherent whole.
To assist in narrowing the practically infinite variety of potential measures for the Internal Process perspective to a manageable number, most organizations will rely on a framework which identifies four ‘clusters’ of processes, all of which are relevant to modern businesses with a desire to succeed. Let’s take a look at each:
By identifying and monitoring measures in these four clusters you ensure your Internal Processes are both efficient and effective, resulting in satisfied and loyal customers and creating value for your shareholders.Back to articles