1. Tailoring Metrics for Service Sectors
While the Balanced Scorecard was initially built for manufacturing environments, Fitzgerald and Moon designed the Building Blocks Model specifically to manage performance in modern, service-based industries (such as consulting, banking, software development, or healthcare).
 
2. The Three Architectural Pillars
The framework organizes performance management into three distinct building blocks:
       [ STANDARDS ] -----------------> [ REWARDS ] -----------------> [ DIMENSIONS ]
(Ownership, Equity, Achievability)   (Clarity, Motivation, Control)  (Determinants & Results)

1. Dimensions (What to Measure)
  • Results (Lagging): Financial Success and Competitive Position.
  • Determinants (Leading process drivers): Quality of Service, Flexibility to meet custom demands, Resource Utilization efficiency, and Innovation pace.

2. Standards (How Targets are Set)
  • Ownership: Employees should help set their own targets to increase commitment.
  • Achievability: Targets must be challenging but realistic to maintain staff motivation.
  • Equity: Standards must be fair and consistent across different company branches.

3. Rewards (How to Motivate)
  • Clarity: Employees must understand exactly how their bonuses are calculated.
  • Motivation: Rewards must be linked to controllable goals to drive performance.
  • Controllability: Staff should never be penalized for performance drops caused by uncontrollable market shifts.

 
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