The Balanced ScorecardBy Robert S. Kaplan & David P. Norton

• Translates mission and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system.

• Retains an emphasis on achieving financial objectives, but also includes the performance drivers of these financial objectives.

• Measures organizational performance across four balanced perspectives:

• Financial• Customer• Internal Business Process• Learning and Growth

• Enables companies to track financial results while simultaneously monitoring progress in building the capabilities and acquiring the intangible assets they need for future growth.

Financial

Customer BusinessProcess

Learning& Growth

Vision &Strategy

Enterprise Scorecard

Tier Two Scorecard

Tier Three Scorecard

Financial Perspective• Earnings growth • Unleveraged GAAP Return on Equity (ROE)• Risk-Based Capital • Capital plan• Product Mix• Distribution Mix

Customer Perspective• Rating• Persistency Variance• Sales versus Plan• Policies Under Administration• Customer Satisfaction• Producer Retention

Business Process Perspective• Expense to Premium Ratio• Technology Return on Investment (ROI)• Growth in Target Markets

Learning & Growth Perspective• Employee Satisfaction• Employee Return on Investment (ROI)• Personal Development Plans• Incentive Alignment• Leadership Strength

Enhance Economic Value

Quality earnings growthconsistent with plan

Quality ROE consistentwith plan

Balanced portfolio ofbusiness

Capital and RiskManagement

Expand custom er base &penetration of existing

customer

Provide quality servicemeeting customer needs

Optimize technology &infrastructure

Em ployee Satisfaction

Developing currentleadership & leadership

of the future

Recruiting & retentionEducation & Training Well aligned incentives

Efficient & effectivebusiness fundamentals

Alignment of products,services & delivery totarget cust. segments

Develop productsthat deliver true value to

the customer & enterprise

Maintain appropriaterating

Goal:To be an innovative, growing, high performance, public financial services enterprise that makes the future better for all our stakeholders.

Strategies:• Win Through People• Grow Profitably• Create Value

Critical Success Factors with Cause and Effect Relationships AIP

AIP

Enterprise Scorecard