5.3 BALANCED SCORECARD
Mandatory Key Performance Indicators (KPIs)
Highly Recommended KPIs
Management
Financial
People
Client
Sales
Essential Module Cross Reference
TOTAL KPI QUESTIONS: 35
REVEALED HERE: 15
The Balanced Scorecard is a performance management tool which will enable you to assess how well the Account Management process is working. It provides for the 'measurement' of several key areas, most of which are not financial. This is particularly important as Company Boards invariably make decisions based on financial information. However, the Balanced Scorecard enables some very significant areas to be monitored which are outside the remit of Boards. Conversely, it also provides for the measurement of areas which do fall under Board/Senior Management control and therefore enables you to be 'on top of your game' at all times; which is good for your Client, your Company, your colleagues and you personally!
There are 5 Categories to monitor, score and act upon:
Management
Financial
People
Client
Sales
Each Category has a number of Key Performance Indicators (KPIs) which, for initial ease of use, are marked either '1' for 'Yes' or '0' for 'No'. The overall Category score can then be expressed as a %. Then, the overall/combined % score can be determined for all Categories. If necessary, you may wish to develop a more sophisticated method of scoring once you have become familiar with this key area of Account Management and make any required modifications in the light of your experience. In its current form, some of the answers will inevitably be subjective.
It should be noted that every Level 1 KPI is a crucial indicator and must be regarded as mandatory.
Balanced Scorecards for individual Client Accounts should be reviewed and updated on a monthly basis.
A sample of KPI questions is given below and a further 20 are provided when the module is purchased.
Essential cross references to other key-related Modules are also given to ensure watertight coverage of the Client.
LEVEL 1 - Mandatory
All 20 Level 1 KPIs are considered crucial for effective Account Management to be achieved.
A. Management
Delays & Overruns managed to Client’s satisfaction?
Account Manager’s performance & qualities reviewed?
6 more available
Each KPI: 1 for YES, 0 for NO
Total KPI Score must be 8 out of 8 otherwise Category/Account requires immediate attention. Each 'NO' requires the Account Manager to provide an explanatory paragraph with details of the next action, who & when.
B. Financial
Profit margin (%) increasing?
No debts older than 60 days?
2 more available
Total KPI Score must be 4 out of 4 otherwise see Category A for actions
C. People
All colleagues' personal objectives geared to the Golden Rules (11.1)?
Sickness less than 5%?
1 more available
Total KPI Score must be 3 out of 3 otherwise see Category A for actions
D. Client
Issues/complaints resolved satisfactorily?
Relationship good?
Total KPI Score must be 2 out of 2 otherwise see Category A for actions
E. Sales
Sales opportunity pipeline rigorously qualified & improving?
Lost orders reviewed?
1 more available
Total KPI Score must be 3 out 3 otherwise see Category A for actions
LEVEL 2 - Highly Recommended
All 15 Level 2 KPIs are considered highly desirable but not crucial. If monitored, there is no doubt that your Client, Company, colleagues and you (the Account Manager?) will benefit significantly.
AA. Management
Value Added provided (freebies, technology updates, talks/presentations/seminars/training/etc)
1 more available
BB. Financial
Next Month’s Revenue forecast higher than last month’s ‘actual’ Revenue?
1 more available
CC. People
Each colleague working on Client Account scores 'positive' for team spirit/morale/teamwork, extra miles, Client knowledge, Supplier knowledge?
2 more available
DD. Client
Client Satisfaction Survey in last 12 months?
5 more available
EE. Sales
Value of new business/orders year-to-date greater than same time last year?
1 more available
The initial scoring of 1 for YES or 0 for NO for each KPI (as done for Level 1) will quickly reveal whether further action is required in any of these 15 additional key areas of Account Management. Overall absolute and percentage scores can then be calculated for submission to senior management if required.
Over time, graphs should be used to monitor performance trends.
Essential Module Cross Reference
“THE BALANCED SCORECARD IS THE ONLY TOOL WHICH ENABLES YOU TO ESTABLISH EXACTLY WHERE YOU ARE AND WHAT NEEDS TO CHANGE IN ORDER TO STAY ON COURSE”
ANOTHER 20 KPI QUESTIONS AVAILABLE
75% PRICE DISCOUNT FOR LIMITED PERIOD
‘ASPIRE’ (How To Manage Any Client) ™
Account Management & Development
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