ACTIVITIES TO METRICS MAPPING: AN AID TO APPLYING THE BALANCED SCORECARD TO MFIS

Microfinance institutions (MFI) face significant challenges in achieving strategic objectives. An important part of these challenges lies in the difficulty of choosing critical metrics for measuring success. MFIs have attributes that require a unique approach to the selection of metrics. Evaluating...

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Bibliographic Details
Published in:Cost management 2013-03, Vol.27 (2), p.30
Main Authors: Clinton, Amy M, Clinton, B Douglas
Format: Magazinearticle
Language:English
Subjects:
Balanced Scorecard
Business metrics
Corporate objectives
Customers
Interest rates
Microfinance
Objectives
Social impact
Studies
Success
Sustainability
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Summary:Microfinance institutions (MFI) face significant challenges in achieving strategic objectives. An important part of these challenges lies in the difficulty of choosing critical metrics for measuring success. MFIs have attributes that require a unique approach to the selection of metrics. Evaluating MFIs requires measuring and monitoring both economic and social impact (the double bottom line), and MFIs frequently have to make trade-offs when these two objectives clash. Measuring performance is only one part of the process. The organization must first agree on a strategic approach and then select the most appropriate metrics for measuring success that will achieve the desired strategy. Activities to metrics mapping bridges the gap between the activity level and the strategic objectives level of the organization. Strategy formulation must take place at the organizational or "big-picture" level, while value creation takes place at the activity or detail level.