Page 29 - Methodology to assess Net Zero progress in cities

The Balanced Scorecard (BSC) is a broadly used methodology that can measure the establishment
of the strategic targets, via measuring objectives' performance with specific metrics (Kaplan and
Norton, 1992). BSC is analysed in the following perspectives:

1 Financial perspective

2 Customer perspective
3 Internal perspective

4 Learning and growth perspective

Balanced Scorecard (BSC) is a valuable tool that can transform a strategy into a framework plan of
action and secure its successful implementation. Its title is explained as follows:

– Balanced: Equilibrium; multidimensional perspective; integration
– Score: Measurement; target-orientation; long term planning; strategy

– Card: Systemic; simplification; registration; transparency; commitment

BSC starts with the definition of vision and strategic formulation, moves to the critical-success-factor
determination, then identifies the appropriate indexes that measure performance and ends with
the definition of measures and activities. Moreover, the BSC translates strategic objectives into
measurable business targets, which, in turn, are forces that motivate human resources to achieve the
desired outcome. BSC is a modern strategic management tool rather than a traditional controlling
element. An indicative BSC for a city Carbon Neutral strategy, including some corresponding
objectives, KPIs and measures that can be associated with the objectives are presented in the
following (Table 3) and figure 10.

Table 3: Typical metrics for the BSC dimensions

BSC Dimension Strategic Objectives KPIs Actions
Financial Renewable energy provision to ≥ 15%/year Renewable Energy
customer needs (KWh) Production projects
Energy use reduction (KWh/citizen) ≥ 15%/year Measures’
monitoring
Customer Customer orientation ≤ 2% collected Surveys
questionnaires
Public value generation for public ≤ €5 million/yr Participation in
neutrality standardization

Corporate
responsibility
activities

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