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The Balanced Scorecard: Helping You Do the Right Things - and Do Them Right

There's a big difference, of course, between "doing things right" and "doing the right things." Too many organizations spend too much time and effort doing the wrong things (albeit doing them well), thus losing their focus and competitive edge in the marketplace. One tool that can help your organization keep its focus on the right things - and doing them right - is the Balanced Scorecard.

The centerpiece to business decisions

DeKaser's Financial Market Outlook
Conundrum
Long-term interest rates seem to be at bizarrely low levels. The yield on the 10-Year Treasury Note, for example, is just below 4%-even lower than in February, when Fed Chairman Greenspan described the situation as a "conundrum." To understand why this may strike some as a "puzzle" (a term used by another Federal Reserve governor), consider a simple interest rate model.

Business Planning & Strategies
Consumer Goods and Retail Forecast
Retail sales growth in the U.S. was sluggish in 2001-02, but revived in 2003-04 thanks to tax cuts and record-low interest rates. After volume increases of 0.3% in 2001 and 1% in 2002, retail sales growth revived to 2% in 2003 and 4.5% in 2004. But rising interest rates will help to moderate sales growth in the forecast period. In 2005-09 the Economist Intelligence Unit expects retail sales to rise by 4.6% a year in nominal terms (1.6% a year in real terms), far slower than during the boom years of the late 1990s.

The U.S. is the largest retail market in the world

Legislative & Regulatory
The Reins Are Likely to Loosen, Regrets to Follow
Wall Street has been pining for the government to back off and let it get back to making money without the interference of many competing, sometimes politically motivated regulators. It now appears the Street will get its wish. With a Democratic commissioner, Harvey J. Goldschmid, heading for the exits, President Bush will be able to reshape the commission. The White House nominee, Representative Christopher Cox, (R-CA), seems a likely candidate to lead a commission far more sympathetic to Wall Street.

Human Resources & Benefits
At-risk Terminations: Protecting Employees, Preventing Disaster
A 2004 survey conducted by the American Society of Safety Engineers showed only 1% of companies have a written policy addressing violence in the workplace, while only 50% have procedures to notify management of threats. Perhaps the most chilling statistic was that 74% of the 755 members surveyed said their organizations had not yet conducted a formal risk assessment of the potential for violent acts in their workplace. In addition, little or no workplace violence avoidance training is being provided to employees.

Finance & Treasury
Dollar Doldrum
Finance executives can't say they weren't warned. After more than a year of dire announcements that the United States was living beyond its means--and that budget and trade deficits could mean an eventual, sudden decline of the dollar against the currencies of the country's major trading partners--Federal Reserve Alan Greenspan set the wheels in motion for a dollar devaluation last November.

Personal Investing
Do Your Own M&A
Most of the acquisitions are being done by other public companies: SBC is buying AT&T, and Federated is buying May Department Stores. But some companies are going private. The buyers are in what used to be called the leveraged buyout business and now goes by the name "private equity." Their targets include DoubleClick, Polaroid and Toys "R" Us. Besides the takeovers, we have 339 companies in the first third of the year that have started programs to buy back some of their own shares.

Economics
The Bond Market to the Fed: Let's Get Ready to Rumble
Extremely low market rates are at cross-purposes with the Fed's goals. Policymakers are lifting short rates from levels that are still too stimulative to growth and inflation. However, credit remains freely available in the financial markets, and banks are dramatically easing their lending standards to their corporate customers to compete for business. Mortgage rates are still exceptionally cheap, sending April home sales soaring and causing Fed Chairman Alan Greenspan to admit recently that there is ''froth'' in some local housing markets.

Sales & Marketing
You May Be Calling on the Wrong Customer
Customers gravitate toward one of two operating modes: those in the expansion mode (expanders) and those in the contraction mode (contractors). Their operating mode portends how they purchase goods and services, which suggests how salespeople should invest their sales time. Expanders focus on growth. Contractors focus on containment and constriction.

International & Trade
India's Emerging Market
There has been a remarkable shift from west to east. Until last year the U.S. was the sole power driving India's global trade. But no more, with the emergence of China and the Association of South-East Asian Nations (ASEAN) emerging on the scene. The "Look-East" dream of the former Prime Minister, P. V. Narashima Rao, could soon turn out a reality.

Trends & Technology
Manufacturers Upbeat on Economy, but Cautious as to Growth
Based on interviews conducted, 82 percent of manufacturing CEOs-as opposed to 78 percent of those from all industries-are upbeat about U.S. prospects over the next 12 months. The outlook reflects an uptick in optimism of 4 percentage points from last year.

Small Business
The Internet at 35,000 Feet, Circa 2005
Over the next few years, you'll hear the phrases Web 2.0, Web services, XML, and API continually-these are all names for technical building blocks that start to connect different software applications at a data level, which is the first-and critical-step to increasing the relevance of what your computer does for you on a daily basis. The techies that make everything run understand this and are starting to shift their focus to this issue. However, we are taking baby steps compared to where we should be.

Women Business Owners
Women's Economic Development Outreach (WEDO)
WEDO is a coalition of partners working in collaboration to provide focused resources that directly impact women-owned businesses and their opportunity for business expansion. To meet that challenge, National City has developed the Women's Economic Development Outreach (WEDO) Tour.