Scorecard Best Practices

Industry Example

Suzano Petroquímica, the largest producer of polypropylene in Latin America and one of the Best Practice Group respondents, chose to use the Balanced Scorecard framework with minor modifications. They manufacture a commodity item and sell to the polypropylene market as a whole. For this reason their perspectives are: Financial, Market, Internal Process, and Learning and Growth (see Exhibit 5.11 —perspectives are circled on the left).

Exhibit 5.11: Suzano Petroquímica Framework

Source: “How Suzano Petroquímica—Polibrasil Links Strategic Management with Variable Remuneration” presentation by Suzano Petroquímica at the Hyperion Solutions 2006 Conference. Presentation given by Edilson G. Teixeira, Performance Manager.

In addition, Suzano Petroquímica also chose to use a secondary categorization of the strategic objectives (in this case, by stakeholders). Secondary categorizations are called themes and Suzano's themes include Shareholders, Customer, Supplier, People, and Community. In Exhibit 5.11 , Suzano's themes are identified by the numbers in the shaded circles at the bottom of the exhibit. Each objective of the strategy falls into one of the perspectives, and is also categorized by a stakeholder theme.

For example, the objective Develop consumer loyalty with focus on strategic customers is in the Market perspective. It also is categorized by the Customer stakeholder ...