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Personal Balanced Scorecard for Decision Making

In 2006[i], Rampersad introduced the Personal Balanced Scorecard (PBSC)  and integrated four elements: internal, external, knowledge and learning, and financial.

The Personal Balancing Matrix Scorecard (PBM Scorecard) is a balancing matrix with a scorecard based on the Balancing Matrix (BM) and the Balanced Life Equation (BLE).

 “If you cannot measure it, you cannot improve it.”

British scientist William Thomson (1824 – 1907)

History of the Balanced Scorecard (BSC)

Kaplan and Norton introduced the Balanced Scorecard (BSC) in a 1992 Harvard Business Review article[ii]. It was based on the study of performance measurement in companies whose intangible assets played a vital role in value creation. The idea was that measuring these assets would enable better management. The balanced scorecard included four perspectives: financial, internal business process, learning and growth, and customers.[iii] Later they published a book together in 1996.[iv]

Likewise, Kaplan and Norton weren’t the first to advocate that nonfinancial measures be used to motivate, measure, and evaluate a company’s performance. General Electric introduced this concept back in 1950. Back then, it was called “Tableau de Board” based on the work of French process engineers at GE.[v] Kaplan and Norton’s BCS was well-received by organizations (profit and nonprofit). It is still considered one of the top performance measurement tools.[vi]

History of the Personal Balanced Scorecard (PBSC)

In 2006, Rampersad introduced the Personal Balanced Scorecard (PBSC) and integrated four elements: internal, external, knowledge and learning, and financial, based on his 2003 work Total Performance Scorecard (TPS)[vii]. It translates long-term ambition and values into short-term measurable and manageable actions.

I find it interesting that I created a software program in 1995[viii] based on a scorecard for decision-making. Yet, at the time, I didn’t know that the original Balanced Scorecard existed. In fact, I didn’t realize until I started writing In or Out book in 2017. It is a topic of interest to many people. Over the past 20 years, there has been a revolution in performance management tools and frameworks.

Personal Balancing Matrix Scorecard

A decision-making tool for:

  • Big life decisions
  • Daily life decisions
  • Multiple options decisions
  • Two options decisions

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The Personal Balancing Matrix Scorecard (PBM Scorecard) is a balancing matrix with a scorecard based on the Balancing Matrix (BM) and the Balanced Life Equation (BLE). It is composed of 7 decision domains. First, the three core decision domains, your personal statement, you (body, mind, and soul), and your circle of communication. Second the four optional decision domains, time, resources, activity, location.

Before applying the PBM for any decision-making process, write down your personal statement, your core values, vision, and mission to act as filters.

You will have multiple options to choose from with different numerical values for the other six decision domains.

All domains are assigned an equal number of points, where 30 points are the highest number of points you get in each domain. You can only choose one choice for each domain.

Domains with “Yes/No” or “Positive/Negative” get 30 points for a “Yes” or “Positive” answer and earn -30 points for a “No” or “Negative” response. “Does Not Apply” gets 0 points.

The circle of communication and activity decision domains has six items with the following distribution points: 30, 20, 15, 10, 5, and 0 for Not Applied. You assign the values according to the priority of your circles of communication and activities.

Personal Balancing Scorecard Example

Personal Balanced Scorecard
Personal Balancing Matrix Scorecard

1- You (Body, Mind, and Soul)

  • Body
  • Positive (30 Points)
    • Positive to the body, any healthy activity for your body, sports, or any healthy habit, etc.
  • Negative (-30 Points)
    • Negative to the body, any activity that is not healthy for your body, bad eating habits, smoking, taking drugs, etc.
  • Not Applied (0 Points)
  • Mind
  • Positive (30 Points)
    • Positive to the mind is any activity that stimulates the brain to think, meditate, learn, create, ask questions, etc.
  • Negative (-30 Points)
    • Harmful to the mind, any activity that destroys the brain chemically, like drugs or clutters your mind, etc.
  • Not Applied (0 Points)
  • Soul
  • Positive (30 Points)
    • Positive to the soul, meditation, praying, charity, humanitarian efforts, teaching, etc.
  • Negative (-30 Points)
    • Negative for your soul, any activity that promotes or gives you negative feelings, hatred, violence, etc.
  • Not Applied (0 Points)

2- Circle of Communication

  • 30 Points
  • 20 Points
  • 15 Points
  • 10 Points
  • 05 Points
  • 00 Points (Not Applied)

You decide the priority of your circle of communication choosing, for example, God, family, work, community, world, or religion with your preferred order.

3- Time

  • Positive (30 Points)
    • Saves time or is time-efficient.
  • Negative (-30 Points)
    • Waste of time or is time inefficient.
  • Not Applied (0)

The activity domain has six items with the following distribution points: 30, 20, 15, 10, 5, and 0 for Not Applied. Arrange them in your preferred order of activities.

4- Resources

  • Positive (30 Points)
    • Resources are available and will be in a better state after the decision.
  • Negative (-30 Points)
    • Resources are not available or will be reduced after the decision.
  • Not Applied (0 Points)

5- Activity

  • 30 Points
  • 20 Points
  • 15 Points
  • 10 Points
  • 05 Points
  • 00 Points (Not Applied)

You decide the priority of your activities by choosing from any of the following activities or writing your preferred ones: sports, work, entertainment, charity, or romance, etc.

6- Location

  • Positive (30 Points)
    • The place is safer, cleaner, or has excellent service, etc.
  • Negative (-30 Points)
    • The place is unsafe, not clean, or lousy service, etc.
  • Not Applied (0 Points)

Calculate the points for each decision, and the winner is the choice with the highest number of points.

Conclusion

The Personal Balanced Scorecard (PBSC) was first introduced in 2006 by Rampersad. Its aim was to translate long-term ambition and values into short-term measurable and manageable actions.

The Personal Balancing Matrix Scorecard is a decision-making tool based on the Balancing Matrix to quantify the decision-making process.

A. I. Shoukry is the founder of The Decisions Academy and a bestselling author.

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@ashoukry

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[i] Rampersad HK. Personal Balanced Scorecard: The Way to Individual Happiness, Personal Integrity, and Organizational Effectiveness. Information Age Publishing, Incorporated; 2006.

[ii] Bourguignon A, Malleret V, Nørreklit H, et al. The Balanced Scorecard-Measures that Drive Performance. Total Qual Manag. 2006;12(1):1-27. doi:10.1016/S0361-3682(02)00097-1.

[iii] Kaplan RS. Conceptual Foundations of the Balanced Scorecard. Harvard Bus Sch. 2010:1-36. doi:10.1016/S1751-3243(07)03003-9.

[iv] Kaplan RS, Norton DP. The Balanced Scorecard: Translating Strategy into Action. Harvard Business Review Press; 1996.

[v] Lewis RW. Measuring, reporting, and appraising results of operations with reference to goals, plans, and budgets. Planning, Manag Meas Bus A case study Manag Plan Control Gen Electr Co. 1955.

[vi] The Top 5 Performance Management Tools | LinkedIn. https://www.linkedin.com/pulse/20140522054403-64875646-the-5-most-popular-tools-to-manage-performance-good-news-and-cautionary-tales/. Accessed October 19, 2017.

[vii] Rampersad H. Authentic Governance. 2014:253. doi:10.1007/978-3-319-03113-2.

[viii]Balancing System 1.0 : Ahmed Ismail Shoukry : Internet Archive. https://archive.org/details/hypercard_balancingsys1. Accessed October 19, 2017.

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