Navigator (SN) is a collection of critical measurements that all comprise a
holistic view of performance and goal achievement. The architecture of the SN is simple yet very sophisticated. Five focus areas or
perspectives capture different areas of interest. Each area visualizes the
value creation process. The SN facilitates a holistic
understanding of the organization and its value creation along 5 focus
Financial focus captures the financial outcome of our activities. Some like to see it as a
receipt. It is here where we establish the long-term goals and also a
large part of the overall conditions for the other perspectives. This
could be profitability and growth that our shareholder demands from us.
Customer focus gives
an indication on how well the organization fills the needs of its
customers via services and products. For example, how much of our sales
derive from new customers when compared to old ones or how loyal are our
customers? It represents a view that goes from the outside looking in. It
is of importance that we define our customers' needs.
Process focus aptures the actual processes of creating services and products our
customers desire. It covers questions like how do we handle our customer
support? This focus area is also connected to the internal processes. Are
we working in an efficient way? Are we working in a correct manner?
Connected to this could be the importance of structural capital .
development aims at reassuring the organizations long-term renewal and in
part its sustainability. What steps and actions are we taking now to
ensure long-term growth and profitability? What is required to attain and
develop the knowledge needed to perceive and satisfy our customers needs?
Human focus is the
heart of the organization and is essential in a value creating
organization. The process of knowledge creation is visualized in this
focus area. It is also essential that the employees are pleased with their
work situation; pleased employees lead to pleased customers, improving the
company's sales and result.
More valuation methodologies
Edvinsson, Corporate Longitude
Kaplan, Norton, The Strategy- Focused
Standfield, Intangible Management
Lev, Intangibles: Management, Measurement, and
Smith, Valuation of Intellectual Property and