Balanced Scorecard Scoring

In Capstone 2.0, each company’s performance will be evaluated based on the four pillars of the
Balanced Scorecard:

• Financial
• Internal Business Process
• Customer
• Learning and Growth

Each round, new goals are set for each item that makes up the four pillars. Points will be allocated based
upon how close each company came to those goals.

Here is a breakdown of each pillar and metric that you will be assessed on yearly – possible points
earned will be highlighted next to each pillar/metric.

Financial - 25 Total Points

Profit (9 Points) - Profits are the annual net profits of your company in dollars.
Stock Price (8 Points) - Your Stock Price is the dollar value of a single share of your company.
Leverage (8 Points) - Leverage is the ratio of Assets to Equity.

Internal Business Process - 25 Total Points

Contribution Margin (5 Points) - Contribution Margin is the proportion of sales revenues which
contributes to overhead and profits, expressed as a percentage (Price - Labor - Material - Inventory
Carry)/Price.
Plant Utilization (5 Points) - Plant Utilization is the percentage of time your plant is being used. If
underutilized, you are paying depreciation and interest on underused assets. At 200% utilization, you
will not be able to produce additional product, and therefore might miss sales opportunities.
Days of Working Capital (5 Points) - Days of Working Capital is your current assets minus current
liabilities in days.
Stock Out Costs (5 Points) - Stock-out Costs are the lost sales due to stock outs as a percentage of
overall sales.
Inventory Carrying Costs (5 Points) - Inventory Carrying Costs are the costs of carrying unsold inventory
as a percentage of overall sales

Customer - 25 Total Points

Customer Buying Criteria (5 Points) - Customer Buying Criteria is how closely your products meet
customer criteria, sales weighted.
Awareness (5 Points) - Customer Awareness is the proportion of customers that know of your products,
sales weighted. It is the strength of your promotion efforts.
Accessibility (5 Points) - Customer Accessibility is how easy it is for customers to purchase your
products, sales weighted. It is the strength of your distribution channels.
Product Count (5 Points) - Product Count is the number of viable products you offer. To be considered a
viable product, it must have 6% or more of a segment's sales.
SG&A Expense (5 Points) - SG&A Expenses are the sales, general, and administrative expenses as a
percentage of sales.

Learning and Growth

Employee Turnover (6 Points) - Employee Turnover Rate is the percentage of employees your company
replaces each year due to your overworked and underpaid workforce.

If the HR module is unavailable in your game, the scoring will be standard for all competitors.

Employee Productivity (7 Points) - Evaluates employee productivity, which includes the following:
Employee Turnover, Profits/Employee, Market Cap/Employee, and Sales/Employee.

If the TQM module is unavailable in your game, the following points will be unachievable for all
companies.

TQM Admin Cost Reduction (3 Points) - TQM Admin Cost Reduction is the effect of your investments in
Vendor/Just in Time and Benchmarking initiatives.
TQM Material Reduction (3 Points) - TQM Material Reduction is the effect of your investments in
Continuous Process Improvement Systems, Vendor/Just in Time, CCE (Concurrent Engineering)/6 Sigma
Training, UNEP Green Program, and GEMI TQEM Sustainability initiatives
TQM Demand Increase (3 Points) - TQM Demand Increase is the effect of your investments in the
Channel Support Systems initiative, UNEP Green Program, Quality Function Deployment Effort, CCE
(Concurrent Engineering)/6 Sigma Training initiatives
TQM R&D Reduction (3 Points) - TQM R&D Reduction is the effect of your investments in Concurrent
Engineering and Quality Function Deployment Effort initiatives.

Lastly, a Recap score will determine how your company has performed at the end of all rounds played.
This measure will be monitored throughout the course but will primarily be used at the end of the
course. Generally, it is completely normal for these scores to be low in early rounds.

Similar to each Round of the Balanced Scorecard layout, the recap score will touch on 4 pillars:

• Financial
• Internal Business Process
• Customer
• Learning and Growth

Financial - 60 Total Points

Market Cap Percentage (20 Points) - Market Cap Percentage is the percentage of your company's total
stock value against the entire industry. This is the ending value from the final round played.
Emergency Loan (20 Points) - Emergency Loan as a proportion of total assets. A visit from Big Al is
triggered when sales revenues and financing decisions do not cover annual expenses. This is an average
across all rounds played.
Sales (20 Points) - Sales are the annual sales of your company in dollars. This is an average across all
rounds played.

Internal Business Process - 60 Total Points

Operating Profit (60 Points) - Operating Profit is net profit in dollars, excluding extra-ordinary items like
gain/loss on P&E retirement, inventory liquidations and early bond retirement. This is a cumulative
measure across all rounds played.

Customer - 60 Total Points

Market Share (40 Points) - Market Share is the percentage of the entire industry's sales that is earned
by your company. This is an average across all rounds played.
Customer Survey Score (20 Points) - Customer Survey Score is the overall demand for your products,
weighted by sales of each product. This is the net combination of Buying Criteria, Awareness and
Accessibility. This is an average across all rounds played.

Learning and Growth - 60 Total Points

Profit/Employee (20 Points) - Profits/Employee is the ratio of total profits to total employees. This is a
cumulative measure across all rounds played.
Sales/Employee (20 Points) – Sales/Employee is a ratio reflecting the dollar sales each employee
generates. This is an average across all rounds played.
Assets/Employee (20 Points) - Assets/Employee is the ratio of total assets in dollars to total employees.
This is an average across all rounds played.