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

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