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    Balance Score Card

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    jeevan305
    The balanced scorecard translates an organization's mission and strategy into a set of key performance indicators within four perspectives: financial, customer, internal business processes, and learning and growth. It communicates strategy throughout the organization and identifies the most important measures. Within each perspective, objectives, measures, targets, and initiatives are defined to implement the strategy.

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    Balance Score Card

    Uploaded by

    jeevan305
    292 views17 pages
    The balanced scorecard translates an organization's mission and strategy into a set of key performance indicators within four perspectives: financial, customer, internal business processes, and learning and growth. It communicates strategy throughout the organization and identifies the most important measures. Within each perspective, objectives, measures, targets, and initiatives are defined to implement the strategy.

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    Balance score card

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    Balance score card

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    The balanced scorecard translates an organization's mission and strategy into a set of key performance indicators within four perspectives: financial, customer, internal business processes, and learning and growth. It communicates strategy throughout the organization and identifies the most important measures. Within each perspective, objectives, measures, targets, and initiatives are defined to implement the strategy.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    292 views17 pages

    Balance Score Card

    Uploaded by

    jeevan305
    The balanced scorecard translates an organization's mission and strategy into a set of key performance indicators within four perspectives: financial, customer, internal business processes, and learning and growth. It communicates strategy throughout the organization and identifies the most important measures. Within each perspective, objectives, measures, targets, and initiatives are defined to implement the strategy.

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    Balanced scorecard

    The balanced scorecard translates an organization's mission and strategy into a set of performance measures that provides the frame work for implementing the strategy. (Kalpan R.S & Norton D. P, HBS press 1996)

    Features of balanced scorecard


    It tells the story of a companys strategy 2. It helps to communicate the strategy to all members of the organization by translating the strategy into a coherent an linked set of understandable and measurable operational targets. 3. It limits the number of measures, identifying only the most critical ones.
    1.

    Balanced Scorecards tell you the knowledge,

    skills and systems that your employees will need (learning and growth) to innovate and build the right strategic capabilities and efficiencies (internal processes) that deliver specific value to the market (customer) which will eventually lead to higher shareholder value (financial). Having Trouble with Your Strategy? Then Map It by Robert S. Kaplan and David P. Norton Harvard Business Review

    What exactly is a Balanced scorecard?


    A strategic planning and management system used to

    align business activities to the vision statement of an organization. To embark on the Balanced Scorecard path an organization first must know (and understand) the following: 1. The company's mission statement 2. The company's strategic plan/vision 3. The financial status of the organization 4. How the organization is currently structured and operating 5. The level of expertise of their employees 6. Customer satisfaction level

    Every profession has some means of communicating

    clearly to the end user. However, for people engaged in strategic planning there has been an on-going dilemma. The finished product, the strategic plan, has not communicated and reached the end user.

    Balanced Scorecards provide the framework

    around which an organization changes through the execution of its strategy. This is accomplished by linking everything together

    FOUR PERSPECTIVES.
    The balanced scorecard measures the

    organizational performance from four perspectives 1. Financial 2. Customers 3. Internal business process 4. Learning and growth

    The Financial Perspective


    This perspective defines & evaluates the

    profitability of the strategy It focuses on how much of operating income and return on capital results from reducing costs and selling more units. Objective: Increase shareholders value Decrease costs and increase revenue Measures: operating income from productivity gain. operating income from revenue growth

    Initiatives:

    Manage costs and unused capacity Building customer relationship Target performance: Actual performance:

    Customer perspective
    Objective: 1. Increase market share 2. increase customer satisfaction 1. Market share 2. New customers 3. Customer satisfaction survey

    Measures:

    Initiatives:
    1. Identify future needs of customers 2. Indentify new customers segments 3. increase customer focus of sales organization
    Target performance: Actual performance:

    Internal business process perspective


    Objective: 1. Improve manufacturing quality and productivity 2. Reduce delivery time to customers 3. Meet specific delivery date 4. Improve process

    Measures: 1. Yield/ output 2. Order delivery time 3. On time delivery time 4. Number of major improvements in manufacturing
    Target performance: Actual performance:

    Initiatives:

    Indentify root cause of problems and improve quality 2. Reengineer order delivery time process 3. Reengineering order delivery time process 4. Organize R & D team from manufacturing and sales to modify process Target performance:
    1.

    Actual performance:

    Learning and growth perspectives


    Objectives: 1. Align all employees and organization goals 2. Develop process skills 3. Empower workforce 4. Enhance information Measures: 1. Employee satisfaction survey 2. % of employees trained in process

    Strategic objectives of four perspectives


    Financial - Shareholder Value

    Grow Revenues
    Customer - Acquire More Customers

    Become the Price Leader


    Internal Processes -Improve Operational Efficiency

    Cost Reduction Program Knowledge Based System Reduce Non Core Activities

    Learning & Growth - Training - Best practices

    in

    cost management Database network on operational performance Re-align organization with core competencies

    Diagrammatic representation of Four perspectives of Scorecard


    Financial Goal Measure Target Initiative

    Customer Goal Measure Target Initiative

    Vision & Strategy


    Learning &growth Goal Measure Target Initiative

    Internal Business process Goal measure Target Initiative

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