Full Examples

Question 1

Q: 🧵 Example 1: Quality Craftsmanship Hedgehog Concept → BSC Measures

Answer 1

A:
Hedgehog Concept:

Best at: Handcrafted, durable products
Passion: Artisan tradition and design
Economic Engine: Profit per unit sold

Focus Statement:
“To be the most trusted source of premium, handcrafted goods with unmatched quality.”

Balanced Scorecard Alignment:

Customer:
Non-financial: NPS, product return rate, defect rate
Financial: Sales per customer

Internal Process:
Non-financial: First-pass yield, quality inspection pass rate
Financial: Scrap cost, rework cost

Learning & Growth:
Non-financial: Training hours on craftsmanship, employee satisfaction

Financial:
Financial: Gross margin %, profit per product line

Question 2

Q: 🧃 Example 2: Cost Leadership Hedgehog Concept → BSC Measures

Answer 2

A:
Hedgehog Concept:

Best at: Operational efficiency
Passion: Streamlining and simplicity
Economic Engine: Profit per transaction

Focus Statement:
“To deliver everyday essentials at the lowest cost without compromising consistency.”

Balanced Scorecard Alignment:

Customer:
Non-financial: On-time delivery %, customer complaints
Financial: Revenue per square foot

Internal Process:
Non-financial: Cycle time, inventory turnover, % orders automated
Financial: Unit cost, fixed cost absorption rate

Learning & Growth:
Non-financial: Ideas implemented per employee, cross-training rate

Financial:
Financial: Operating margin, ROI

Question 3

Q: 🌿 Example 3: Sustainable Innovation Hedgehog Concept → BSC Measures

Answer 3

A:
Hedgehog Concept:

Best at: Eco-friendly product development
Passion: Sustainability and design
Economic Engine: Revenue per innovative product

Focus Statement:
“To lead our industry in sustainable, innovative solutions that customers love.”

Balanced Scorecard Alignment:
Customer:
Non-financial: % of customers choosing green products, NPS
Financial: Sales of new sustainable products

Internal Process:
Non-financial: Time to market, % sustainable inputs used
Financial: R&D cost per launch

Learning & Growth:
Non-financial: R&D hours per employee, environmental training completed

Financial:
Financial: ROI on new products, profit margin of sustainable line