Important Updates to the Balanced Scorecard

By | December 21, 2017

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?

  1. It will shift all of the financial performance scores upwards as can be seen in the distribution graphs below.
  2. Fewer firms will experience zero balanced scorecards from the start to the finish of the simulation.
  3. Weaker teams will have more to feel good about, which will enhance their motivation to work harder and smarter.
  4. 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%.

Update to Balance Scorecard performance metrics

We believe that the new computation for financial performance and its effect on the balanced scorecard scores will benefit both you and your students.

About Marketplace Simulations
Marketplace Simulations is a family of over 30 marketing and business simulations designed for university business courses and executive business programs. Our business simulation games allow students to experiment with business strategies, test business ideas, and experience the consequences of their actions in a virtual business environment. With a purpose to create business education tools that are both engaging and transformative, our most popular and best simulation games include Introduction to Marketing, Venture Strategy, Strategic Marketing, and Business Fundamentals. Other top selling games include, Introduction to Business and Strategy, Conscious Capitalism, and International Corporate Management. For more information or to schedule a personal tour of an online simulation game, please contact one of our Product Specialists at +1-865-522-1946.

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