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BALANCED

PRESENTED BY

MEENAKSHI SHARMA

SALONI JUNEJA

SAHIL

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The Balanced ScorecardWhat is it?

Definition:At the highest level, the Balanced

Scorecard is a framework that helps

organizations translate strategy intooperational objectives that drive bothbehaviour and performance.

This system was coined by Kaplan andNorton

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The Balanced Scorecard

Why do it? To achieve strategic objectives.

To provide quality with fewer resources.

To eliminate non-value added efforts.

To align customer priorities andexpectations with the customer.

To track progress.

To evaluate process changes. To continually improve.

To increase accountability

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The Five Principles

3. Translate the strategy to operationalterms.

5. Align the organization to the strategy.

9. Make strategy everyones job.

11.Make strategy a continual process.

13.Mobilize change through executive

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Strategic DirectionCreate

EnvironmentFor Change

Strategic Performance Management

inking it all

CommunicateStrategies

Define ObjectivesImplement BSC

Balanced ScorecardMeasure

PerformanceImprove Processes

Evaluate and AdjustContinuous

ImprovementRedefine Initiatives

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The Balanced Scorecard andTh Bi Pi t r

Activity BasedCostingForecastingBenchmarkingMarket Research

Six SigmaTotal Quality

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FinancialFinancial

ResultsResults

Needed to Deliver Unique

To Drive Financial

And Realize

InternalInternal

CapabilitiesCapabilities

Customer

Benefits

We Use the Scorecard toArticulate Strategic Hypotheses in

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Financial

Cost / Unit

Unfunded Requirements or

Projects

Cost of Service

Possible PerformancePossible Performance

To satisfy our constituents, what financialand

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CustomerPerspective

Customer Satisfaction (Average)

Satisfaction Gap Analysis (Satisfaction vs.

Level of Importance)Satisfaction Distribution (% of each area

Possible Performance MeasuresPossible Performance Measures

To achieve our vision, whatcustomer needs

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Internal

Cycle Time

Workload and Employee

Utilization

Transactions per employee

Possible PerformancePossible Performance

To satisfy our customers, in whichbusiness

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Strategic Objectives

Once we establish our first anchor (goals),we can develop a set of strategicobjectives.

Strategic objectives define what actionsmust be taken to reach the strategic goals.

Objectives are critical to future success.For example, in order to grow revenues,we must introduce new products andex and our market share.

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Measurements

Translate customer expectations intogoals.

Evaluate the quality of processes.

Track our improvement.

Focus our efforts on our customers.

Su ort our strate ies.

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Targets

Once you establish measurements, youneed to set a target for eachmeasurement.

Targets push the organization to a requiredlevel of performance.

Targets put focus on the strategy,

expressing the specifics of the strategy.

When an organization hits its targets, then

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Data-Trends Against Targets Root Causes

Action PlansAnalysis

Pareto, Detailed Research, etc.

1.

2.

3.

Performance evaluation

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BALANCED SCORECARD FOR AIRLINE

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Objectives

Fast ground

Statement of

what strategy

must achieve

and whats

Target

30 Minutes 90%

The level of

performance

or rate of

improvement

Cycle time

Key action

programs

required to

achieve

InitiativeMeasurement

On Ground Time On-Time

How success

in achieving

the strategy

will be

Strategic Theme:

ProfitabilityFinancial

Learnin

Morecustomers

Ground crew

alignment

Lowest

prices

Fewer planes

Customer

InternalFast ground

turnaround

Strategy Map: Diagram of the

cause-and-effect relationships

Flight

Is on time

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% Ground crew

trained

% Ground crew

Objectives Measurement

Market Value

Seat Revenue

Plane Lease

On Time Arrival

Rating

Customer

Ranking (Market

On Ground Time

On-Time

Strategic Theme:

Initiative

Cycle time

optimization

ESOP

Ground crew

Quality

management

Customer

loyalty

Target

30% CAGR

20% CAGR

#1

30 Minutes

90%

yr. 1 70%

yr. 3 90%

ProfitabilityFinancial

Learnin

More

Customers

Ground Crew

Alignment

Lowest

Prices

Fewer Planes

Customer

Internal

Fast Ground

Turnaround

Flight

Is on Time

Profitability

More

Customers

Flight is on -time

Lowest prices

Fast ground

Ground crew

Balanced Scorecard

Promotion

Advt.

Cost

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08/23/09

Process ImprovementsVersatile Training to Branches, Terminator Workshops

QualityProductivity% Complaints to Transactions

Branch Contacts with Customers, Delivery Success Rate %

To ensure that the all causes of Unhappiness for Customer are fullyTerminated in order for the bank be a Service Leader

Customer ComplaintsCustomer Feedback ScoresRepeat Contacts

Request Closure beyond 24 Hours

Cost of Complaints% of Business through Cross SellingAverage Revenue Per Customer

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Advantages to this Approach

Simple to Use and UnderstandBased on Vision and Strategy

MultidimensionalQuantitative and Qualitative MeasuresCurrent and Future

Provides Measurement of and Methodfor Improving our ServicesServes as a Communication Tool

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THANK