The Balanced Scorecard

1. The Balanced Scorecard By Robert S. Kaplan & David P. Norton Financial • 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. Customer Vision & Strategy Business Process Learning & Growth Enterprise Scorecard Tier Two Scorecard Tier Three Scorecard

2. 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 Enterprise Scorecard Financial Perspective • Earnings growth • Unleveraged GAAP Return on Equity (ROE) • Risk-Based Capital • Capital plan • Product Mix • Distribution Mix Critical Success Factors with Cause and Effect Relationships AIP Customer Perspective • Rating • Persistency Variance • Sales versus Plan • Policies Under Administration • Customer Satisfaction • Producer Retention AIP 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