Post on 27-Jan-2017
Balanced Score Card
Presented by,Patel Sneha S.
It is all about;
• Four key Business Perspectives
• Internal & Business process of Organization
• Short Run & Long Run
What Is a Balanced Scorecard?
A Measurement
System?
A Management
System?A
Management Philosophy?
Balanced Score Card is;
• Management system Clarifies mission & vision of an organizationTranslates mission & vision into measurable and actionable
measuresHelps provide feedback and meaningful information
• Balanced Score Card was pioneered by Robert Kaplan and David Norton of Harvard Business School in 1992
Why name “Balanced Score Card”?
• Short and long-term objectives • Financial and Non-Financial measures• Lagging and Leading indicators• Internal and External Perspectives
Why Companies Uses BSC
• Change.
• Growth.
• Implementation.
The Benefits
• A robust tool • Makes strategy tangible • Tracks what’s important • Measurement of financial and non-financial aspects• Provides feedback for short-term course corrections and long-term
learning
Financial Perspective
Internal Process Perspective
Learning & Growth
Perspective
Customer Perspective
Vision & Strategy
The Four Perspectives
A. Financial - How do we succeed financially?B. Customer - How do we appear to our customers?C. Internal Process - At what processes must we excel?D. Learning and Growth - How do we sustain our ability to change
and grow?
The Four Perspective
• Financial Perspective Reflect only the past: spending incurred and revenues earnedDo not measure creation or destruction of future economic value
• Customer Focus: satisfy, retain and acquire customers in targeted segments
• Business Processes: deliver the value proposition to targeted customersinnovative products and serviceshigh-quality, flexible, and responsive operating processesexcellent post-sales support
• Organizational Learning & Growth: develops skills and motivates employees;provides access to strategic informationaligns individuals and teams to business unit objectives
. Scorecard Information
Information Type Are…. Example is…
Strategies High Level Goals Increase Market Share
Objectives Measures of action plans
Increase Customer Satisfaction
Measures Indicates success or failure
Average Customer Rating (scale of 1-10)
Targets Desired level of performance for a measure
Achieve 9.9 of 10 Average Customer Rating
Initiatives Management actions taken to achieve target
Train CSR Staff in Problem Resolution Skills
Perspective: Financial / Customer / Internal Process / Learning&Growth
The BSC Execution Stages
• Develop the Strategy • Plan the Strategy • Align the Organization • Plan the Operations • Monitor (Execution) and Learn• Test and Adapt
References
• "Balanced Scorecard", www.lassib.org • "Performance Measurement with Balanced Scorecard", - Stefano
Biazzo and Patricia Gareno, Springer - Verlag Berlin Heidelberg 2012
• balanced-scorecards-and-operational-dashboards-with-microsoft-excel