Introduction to OBSC
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Transcript of Introduction to OBSC
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8/12/2019 Introduction to OBSC
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Introduction to theOracle
Balanced Scorecard
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What is it?
Management process to implement a
business strategy.
Translates a companys strategy into a
coherent set of performance measures.
Establishes cause and effect relationshipsbetween Key Performance Indicators.
Balanced Scorecard:
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What is it?
I Manage into thefuture not in the past
Balanced Scorecard:
II Implementing thestrategy requires4 steps
Twounderlying
factors:
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What is it?
I Manage into thefuture not in the past
Balanced Scorecard:
The Financial perspective is critical but it onlymeasurespastperformance.
The BSC introduces additional perspectives,
the drivers of futurefinancial performance.
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Dynamic
BSC
Clarify andtranslate
vision andstrategy
Communicateand link strategic
objectivesand measures
Plan,set targets,and alignstrategic
initiatives
Enhancestrategic
feedback andlearning
Performance Measurement Libraries
Minimize time to market
Accumulate Intellectual Capital
Dynamic Wizards
Structured Dynamic cascading
Multimedia Knowledge Base
Target Setting
Budget Guidelines
Budget/BSC Alignment
Virtual MeetingsMake the strategy operational
Competitive Intelligence
Best Practices Identification
Provides the framework for a strategic measurement andmanagement system
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Balanced Scorecard
Long Term Objectives
Financials
Short Term Objectives
Other perspectives
GenericmeasuresLag Indicators.
Performance driversLead indicators
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Balanced Scorecard
Establishes cause and effect relationships between
Key Performance Indicators (KPI):
Strategy = Set of hypotheses aboutcause and effect
Every measure in the BSC should be an element in a
chain of cause-and-effect relationships that
communicates the strategy.
KPIs - Cause & Effect Relationships
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Learning
and GrowthInternal Business
ProcessCustomer Financial
Maximize
ProfitabilityImprove
Customer
Service
Technology
Infrastructure
New Products
& Service
Development
ReduceCredit
ApprovalTime
Minimize
Customer
Turnover
Cross
Selling
Maximize
ProfitabilityImproveCustomer
Service
Technology
Infrastructure
New Products
& Service
Development
ReduceCredit
ApprovalTime
Minimize
Customer
Turnover
Cross
Selling
Cause and effect relationships between Key
Performance Indicators (KPI)
KPIs - Cause & Effect Relationships
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Fills the void that exists in the lack of a
systematic process to implement and obtainfeedback about strategy.
It is a communication and learning system not a
tool to control behavior and to evaluate past
performance.
Balanced Scorecard
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Simplicity
Manage for the future not the past
Focus on Cause and Effect
relationships
System linked to the strategy
Action Oriented
Flexibility
BSC Key points:
