Revised Financial Performance Metric
We have revised the financial performance metric in the balanced scorecard. All games designed after December 27, 2017 will include the new computation.
Financial performance will be based upon the average of the firm’s gross profit and net profit from operations. Historically, it has been based upon net profit from operations.
Why do this?
- It will shift all of the financial performance scores upwards as can be seen in the distribution graphs below.
- Fewer firms will experience zero balanced scorecards from the start to the finish of the simulation.
- Weaker teams will have more to feel good about, which will enhance their motivation to work harder and smarter.
- Instructors will have a greater distribution of balanced scorecard scores which will help in differentiating between students at the low end.
The upward shift in the performance scores has almost no effect on the ordering of the firms and preserves the distribution of balanced scorecard scores for grading purposes. The correlation between the two sets of numbers is 99.6%.
We believe that the new computation for financial performance and its effect on the balanced scorecard scores will benefit both you and your students.