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How about a Balanced Scorecard for the Government Bailout(s)?

Now that our leaders have passed the largest bailout in our nation’s history, I’d like to ask a simple marketing question: “What metrics will be used to monitor the use of these funds?” What I’m suggesting is that whomever loans money the next time around, they should insist on using a balanced scorecard of metrics to measure the use of these funds.

For example, when you or I invest in a business venture (e.g. buy stock) we might look at the return on this invested capital (ROIC).

OK, what is the expected ROIC for the $700 billion bailout?

Sometimes we investors want to know specifically that money we invest will improve the efficiencies of a company.

OK, what will be the new labor productivity rates for these financial firms?

Sometimes, a firm will use new funds to advertise in order to boost its market share.

OK, what will be the targeted market share numbers for these financial firms in 12 months?

Other times, invested funds will be used to improve service levels to customers.

OK, what will be the expected improvement levels for customer service levels?

What is missing from this massive $700 billion bailout is any dose of realistic accountability; most often measured through metrics.

The next time the government wants to bailout a sector of our economy (automobiles are next) we should all ask, as investors in this operation, “What is the balanced scorecard you’ll be using for this bailout?”

If we’re not measuring the performance on these funds (and to my knowledge, we’re not) then this whole process could use a healthy dose of business acumen.

For more thoughts like these, check out Marketing Tips & Tools

November 18, 2008 in Small Business Marketing | Permalink


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