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hierarchy. They may want to consider the current product life-cycle stage
when doing their comparisons. For example, while in the product intro-
duction stage, formalizing business processes may be of considerable rela-
tive importance. When dealing with a mature or declining product, on
the other hand, the desire to minimize variable cost per unit may dictate
that the financial category be of greater importance than the other three
scorecard categories. They provide the following illustrative sample sur-
vey question that might deal with this issue:
Survey question: In measuring success in pursuing a differentiation
strategy, for each pair, indicate which of the two balanced-scorecard
categories is more important. If you believe that the categories being
compared are equally important in the scorecard process, you should
mark a 1. Otherwise, mark the box with the number that corresponds
to the intensity on the side that you consider more important described
in Table 3.5.
Consider the following examples:
Customer
9
8
7
6
5
X
4
3
2
1
2
3
4
5
6
7
8
9
Financial
In this example, the customer category is judged to be strongly more
important than the financial category.
Customer
9
8
7
6
5
4
3
2
1
X
2
3
4
5
6
7
8
9
Internal
Business
Processes
In this example, the customer category is judged to be equally important
to the internal business processes category.
The values can then be entered into AHP software, such as Expert
Choice (http://www.expertchoice.com/), which will compute local and
global weights, with each set of weights always equal to 1. Local weights
are the relative importance of each metric within a category, and global
weights are the relative importance of each metric to the overall goal. The
software will show the relative importance of all metrics and scorecard
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