Some examples of key indicators for Skandia AFS.
The report on its intangible assets issued by Skandia AFS, a subsidiary of the Skandia insurance company, has attracted international attention.
It is the result of a program headed by the company's "Intellectual Capital Director" Leif Edvinsson. This program is based on the structure of concepts presented in (Sveiby &al 1987): The Invisible Balance Sheet, but Skandia has taken it several steps further by incorporating a form of presentation introduced by Kaplan/Norton (The Balanced ScoreCard) in the United States and applying it to several areas.
Skandia`s Business Navigator incorporates a total of about 30 key indicators in various areas, which are monitored internally on a yearly basis. The areas are financial focus, customer focus, process focus, human focus and development/renewal focus.
The key indicators for customer focus include number of
accounts, number of brokers and number of lost customers.
The key indicators for process focus include number of accounts
per employee and administrative costs per employee.
The key indicators for human focus include personnel turnover,
proportion of managers, proportion of female managers and
training/education costs per employee.
The key indicators for development/renewal focus include
satisfied employee index, marketing expense/customer, share of
training hours.
Some examples of key indicators for Skandia AFS.
The program is probably the most ambitious in the world today. The implementation process has now reached the stage where the key indicators are to be used in day-to-day operations.
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