BALANCE SCORECARD WINING MARGIN

MBE B4;

Kieran Nellist Alexey Trush

Karthik Kuppuswamy Kalin Pipatanantakurn

Panji Sukma Majid Zabihi

Balance Scorecard Alternative Advantages and Disadvantages Strategy and Vision Conclusion

Today's Agenda

DEFINITION

Balance Score card is the management tool

that looks beyond short term financial

position of an organisation as a measure of

its performance. By incorporating a variety of

perspectives into its organisational outlook

its gives a more holistic view of performance.

Balance Scorecard Institute (2011)

DEFINITION

The common perspective's used in a Balance Scorecard are:

Financial Performance Customers Innovation and Growth Internal processes

WMG web site (2011)

DEFINITION

“Management by Objectives is basically a process that starts with the setting of objectives for individuals, and finishes with a review of an individual’s performance, based on their own and the organization’s results”.

“Hoshin Kanri is the Japanese strategic planning process designed to ensure that the mission, vision, goals, and annual objectives are communicated throughout an organization, and implemented by everyone from top management to the shop floor (frontline) level”. WMG web site (2011)

COMPARISON

Long term

Flexibility SystemicTeamwork

Systematic

Balance Scorecard

✔ ✔ ✔ ✔ ✔

Hoshin Kanri

✔ ✔ ✔ ✔ ✔

Management by objectives

✔ ✔ ✔

WMG web site (2011)

ADVANTAGES OF BSC

Structured approach to analyse the perspectives

Align organisation strategy with daily operation basis

Work for the long term objectives through short term actions

Integration of varied performance measures from all aspects of an organisation

Balance Scorecard Institute (2011)

DISADVANTAGES

Time consuming Difficulties of measurement Disconnection of objectives and

results Lack of benchmarking Measure selection

Balance Scorecard Institute (2011)

SOLUTIONS FOR DISADVANTAGES Time consuming:

A project team to lead change Difficulties of measurement

Selection of tangible performance indicators

Disconnection of objectives and results

Training Lack of benchmarking

Market research Measure selection

Measure testingBalance Scorecard Institute (2011)

VISION

“Create a long term sustainable business

that operate considering the best

interest of all stakeholders to create a

marketing leading product”

OUR STRATEGY

 Research market potential for a new product

Invest in new equipment Invest in new technology. Reorganise production lineReorganize the Leisure sales team Increase marketing spend to £180k Reorganize Finance and HR departments Introduction of the Finance package

BALANCED SCORECARD

Balance Scorecard Institute (2011)

FINANCIAL

Lascelles, D.M.(2008).

CUSTOMER AND LEARNING & GROWTH

Kaplan, R. (1996)

INTERNAL BUSINESS PROCESS

Kaplan, R. (1996).

ASSUMPTIONS

- We assume that Finance Package will reduce errors

- We assume that restructuring of the business will lead to a market share growth each year

- We assuming that company might can maintain the current product sales meeting the demand

- We assume that marketing for a new product is successful and consumer base is created

- We assume that training of staff will increase sales

- We assume that investments in new technologies will increase efficiency

- We assume that reorganisation of some of departments will reduce the administration costs

- We assume that reorganisation of the production line will cover the needs of both products

CONCLUSION

While many approaches to strategy implementation exist, we saw the use of the balanced scorecard as the best suited to our strategy and future development of the Waveriders company. Through its implementation we created a 5 year strategy implementation focuses on 4 keys area of the firm to implement year by year actions to achieve long term business objectives outlined in our strategy.

REFERENCES

1) Balance Scorecard Institute. Retrieved February 11, 2011, from: http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx

2) WMG web site (2011). Balance Scorecard. Retrieved February 10, 2011, from: http://www2.warwick.ac.uk/fac/sci/wmg/ftmsc/modules/modulelist/le/sessions/strategy/bsc/scorecard/

3) Lascelles, D.M.(2008). Self-Assessment for Business Excellence. McGraw-Hill Book Company Europe.

4) Kaplan, R. (1996). The Balanced Scorecard: Translating Strategy into Action. Harvard Business Press.