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Balance Scorecard

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Presented By:Yatin

Yuti

Abhishek

Akshay

Austin

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BALANCE SCORECARD

A strategic planning and management system to align business

activities to the vision and strategy of the organization and monitor

organization performance against strategic goals.

Originated by Drs. Robert Kaplan (Harvard Business School) and

David Norton .

Performance measurement framework that added strategic non-

financial performance measures to traditional financial metrics for

more 'balanced' view of organizational performance.

Measures the performance not only in past but also for future.

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Objectives , Measures, Targets, Initiatives

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A chain of cause and effect relationships

a communication, informing, and learning system,

not as a controlling system.

The term scorecard signifies quantified performance

measures and balanced signifies that the system is

balanced between:

Short-term and long term objectives

Financial and non-financial measures

Lagging and leading indicators

Internal and external performance perspectives

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BSC Perspective

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PESPECTIVES

Learning and Growth perspective

Business Process perspective

Customer perspective

Financial perspective

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Balanced Scorecard - Factors Examples

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Building & Implementing a Balanced Scorecard

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Building & Implementing a Balanced Scorecard

Strategic Mapping

Objectives

Strategies

Assessment

Evaluation

Cascade

Automation Initiatives

Performance Measures

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Performance Measurement

Provide a way to see if our strategy is working

Focus employees' attention on what matters most to success

Allow measurement of accomplishments, not just of the work that

is performed Provide a common language for communication

Are explicitly defined in terms of owner, unit of measure,

collection frequency, data quality, expected value(targets), and

thresholds Are valid, to ensure measurement of the right things

Are verifiable, to ensure data collection accuracy

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Benefit of BSC Implementation

Improved processes

Motivated/educated employees

Enhanced information systems

Monitored progress

Greater customer satisfaction

Increased financial usage

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Benefits ofBalanced Scorecard

Better Strategic Planning

Improved Strategy Communication & Execution

Better Management Information

Improved Performance Reporting

Better Strategic Alignment

Better Organizational Alignment

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Balance Scorecard Examples

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For Credit Card Company

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Balanced Score Card of a Bank

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Gives the complete picture of the employee as well

as the organizational performance.

It guides users in determining the critical success

factors and performance indicators. Strategic review or analysis of the organizational

capabilities and performance.

Focusing the whole organization on the few key

things needed to create breakthrough

performance.

Integrating and directing the performance and

efforts from the lowest levels in the organization to

achieve excellent overall performance.

Conclusion

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