Integrating the Management System and Balanced Scorecard

Article

Barr, John H.   (1998, ASQ)   Xerox Quality Service, Rochester, NY

Annual Quality Congress, Philadelphia, PA    Vol. 52    No. 0
QICID: 10711    May 1998    pp. 401-406
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Article Abstract

The Xerox management model (XMM) combines the attributes of stakeholder and balanced scorecard approaches in strategic performance measurement. This integrated model expands the role of employees, suppliers, community members, and other stakeholders within a scorecard system that links planning, goals, feedback, learning, and rewards. The XMM model has six categories: leadership; human resource management; business process management; customer and market focus; information management and quality tools; and results. The customer and market focus category is the central component of the model, while the leadership category guides all other activities. Company vision corresponds to a desired state for each category. Categories are divided into elements or secondary-level secondary objectives, such as compensation, job design, and organization culture. Each element is linked with core measurements or first-level secondary objectives, like employee satisfaction, and eventually with primary objectives, like increased profitability. Core measurements correspond to business metrics, examples of which include customer satisfaction and employee motivation metrics. XMM has a diagnostic role in which it helps identify and close gaps between target and actual performance. Implementation of the XMM has helped increase Xerox stock value from $26 to over $225 per share between 1991 and 1998.

Keywords

Case study,Metrics,Scorecards,Stakeholders,Strategic planning


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