Oracle Enterprise Performance Management - The CIO's Guide to Oracle Products and Solutions - page 96

Perhaps the most important indicator is business goal alignment . This is
used to align the incentives of employees and management with corporate
and customer objectives.
These indicators, then, form the basis for FedEx's balanced scorecard.
The FedEx corporate philosophy—called People, Service, Profit—guides
all decisions.

Balanced Scorecard

The technique that many companies have selected is indeed the balanced
scorecard, as shown in Figure 3.5. Heralded by the Harvard Business
Review as one of the most significant management ideas of the past 75
years, balanced scorecard has been implemented in companies to both
measure as well as manage the IT effort.
Robert S. Kaplan and David P. Norton developed the balanced-score-
card approach in the early 1990s to compensate for their perceived short-
comings of using only financial metrics to judge corporate performance.
They recognized that in this New Economy, it was also necessary to value
intangible assets. Because of this, they urged companies to measure such
esoteric factors as quality and customer satisfaction. By the mid-1990s,

How do we look to shareholders ?

Financial

Objectives Measures Targets Initiatives

How do customers see us ?

What must we excel at ?

Customer Internal Business Processes

Objectives Measures Targets Initiatives Objectives Measures Targets Initiatives

Vision & Strategy

How can we sustain our ability to change and improve

Learning & Growth

Objectives Measures Targets Initiatives

FIGURE 3.5
The balanced scorecard and its four perspectives.