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|InsightOutside(0.5/1)Zero measurement(1/1)Subsequent measurementCompanyverygood1Competitor 1Strategic goal(definition of targetvalue):TargetvalueTarget index1)Competitor 3Company Gain 0.08 points(8%) in terms ofimageCompetitor 3Competitor 10.5 No need to improveawarenessverypoor(0.5/0.5)Competitor 2Competitor 4(1/0.5)Competitor 2Competitor 40low0.5Awareness1high1) In terms of image, the target value has been surpassedby 0.07 points (7%) “BSC communication indexer”Market research tool for implementing abalanced scorecard (BSC)These days, many major companies are considering implementing a balanced scorecard. In this context,indices are becoming ever more significant. From a customer perspective, image and awareness are veryimportant. Roland Berger Market Research have developed a tool for image and awareness measurement,the BSC communication indexer.Since Kaplan and Norton rst wrote of it, the balanced scorecard,or BSC, has been the topic of frequent discussion. More and morecompanies are realizing that corporate success does not depend onnancial processes alone, but also on non-monetary components.That is why business processes (e.g. product and service quality),customer relationship (e.g. image and awareness), and employeepotential (e.g. learning and development) are becoming ever moreBSC communication indexer: Its characteristics and theirmathematical-statistical realizationIn the early stages of the tool development phase, we dened themost important characteristics of an efcient BSC index tool forthe image and awareness perspective. In step two, correspondingmathematical solutions were then created.important when strategic goals have to be dened.The above-mentioned characteristics and their mathematicalNevertheless, despite the popularity of the BSC, precise mathe-matical solutions that can condense the huge amount of informa-tion down to a small number of indices are still uncommon. Thatis why we felt called upon to create a tool.realization are as follows:1. ClarityIt was essential to reduce the number of indices to a minimum.ImageRoland Berger Market ResearchInsightOutside|The tool development therefore resulted inonly two indices: one image index and oneawareness index.2. CompletenessDespite condensing the data down to onlytwo indices, it is vital to avoid importantinformation getting lost. Besides thegeneral image, the image index thereforeincludes information on after-sales service,product quality, price-performance ratio, anddelivery performances (on-time delivery,delivery capability and efciency, etc.). Theawareness index should measure bothgeneral awareness and the awareness ofspecic company divisions and productsegments relevant to strategic actions.Furthermore, both indices should includevalues which compare the company withits strongest competitors and (in terms ofb) ComprehensibilityThe scale ranges from 0 to 1.4. BenchmarkingThe indices can be calculated forboth the company and its strongestcompetitors.To collect the data relevant to the calcula-tion of both indices, an extensive anddetailed questionnaire was constructed.All of these reections resulted in an indexsystem consisting of only two indices, theawareness index and the image index. Bothindices are standardized to the same range(0 to 1) and are therefore comparable witheach other and also across different coun-tries and several measurement dates.The illustration provides a simpliedexample of how the BSC communicationindexer is applied.Outlook for the balanced scorecardAs a balanced scorecard assumes that allfour processes interact with each other,looking at one perspective alone surelydoes not fit with the complexity of reality a “complete” balanced scorecard hasthus not yet been developed. The nextimportant and challenging step would beto link the results of the BSC communica-tion indexer with the remaining threeperspectives (finance, business processes,and potentials), to come up with possibleinteractions and to deduce further strate-gic goals and arrangements. In any case,the simpler the key figures used in thisimage) with an ideal supplier.They are not simple gures, but aggregatedphase, the easier this challenging phasewill be.3. Comparability and comprehensibilityComparability and comprehensibility aremajor features of a practical index system.Comparability can be mathematicallyachieved through standardization. Forbetter comprehensibility and easierinterpretation, the range was dened asvalues, i.e. values that include a wide rangeof different information on image andawareness and summarize it all in onemeaningful key gure. In addition to this,they include data which compares thecompany with its strongest competitors and(in terms of image) with an ideal supplier.If you are interested in the BSC communication indexer,please contact Ms. Heike Knig (phone: +49/89 9223428, e-mail: heike_koenig )between 0 and 1.Applying the BSC communication indexer4. BenchmarkingBenchmarking, i.e. being able to calculateindices for both the company and itsstrongest competitors, is the fourth andnal requirement of a meaningful BSCindex system.As mentioned above, a balanced scorecardaims at supporting the definition of strate-gic goals and helps to deduce the corre-sponding strategic arrangements. But how(in a second step) can the efficiency ofstrategic actions be evaluated?The following illustration provides a briefsummary of the most important character-istics of the BSC communication indexer:Characteristics of the index tool andtheir mathematical-statisticalrealization1. ClarityOnly two indices: one imageindex and one awareness index.2. CompletenessThe two indices include allimportant information in therange of image and awareness3. a) ComparabilityThe indices are standardized onthe same scale.First it is important to establish an effi-ciency criterion: a
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