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June 20, 2016
EJABI is Jordans premier management development institute, provider of excellent management learning opportunities for managers at all levels. Initiated by EJADA and ACI
Dr. aser Abdel!adi "B#EE, $# C#
%!D C#, %!D B$&Balanced #core Card
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COURSE DESCRIPTION:
An introduction to the Balanced Scorecard designed to
introduce the concepts and critical success factors of
deeloping and i!ple!enting a !easure!ent s"ste!
using the BSC strateg" planning tool principles and
!ethods#
COURSE OB$ECTI%ES:
Achiee &or'ing 'no&ledge of the Balanced Scorecard
concepts
Understand co!ponents for successful i!ple!entation
of !easure!ent and BSC strateg" De!onstrate learning (" deeloping a BSC strateg" tool
and an anal"sis of i!ple!entation for an organi)ation#
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Balanced Scorecard
COURSE OUTCO*ESB" the end of the course+ participants &ill (e a(le to
de!onstrate learning in
Balanced Scorecard ,our Perspecties S-OT Anal"sis Cause and effect lin'ages (et&een strategies and
!easures
Perfor!ance Driers .eading and lagging indicators
Ele!ents for an effectie scorecard Critical Processes for effectie i!ple!entation of a
Balanced Scorecard
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Balanced Scorecard
COURSE RE,ERENCES:
The Balanced Scorecard+ Translating Strateg" Into ActionRo(ert S# /aplan and Daid P# Norton
0arard Business School Press# 1223
The Strateg" ,ocused Organi)ation+ 0o& Balanced
Scorecard Co!panies Thrie In The Ne& Business
Eniron!entRo(ert S# /aplan and Daid P# Norton
0arard Business School Press# 4551
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#trategy Development
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6 I7e al&a"s rec'oned that a ca!el is a horse designed (" a co!!ittee 89
,reddie .a'er
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Quality Gurus
RonaldFisher
1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
She&art
Morgensen
De!ing
Feigenbaum Akao rosb!"ano
#$%$ Rad&ord%arasohn
$uran
Ishi'a&a
Mi'unoTaguchi
(ribus Daid Norton
Ro(ert /aplan
1223
BA.ANCED
SCORECARD
4551 STRATE;
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Balanced Scorecard
1# She&hart: Significance of %ariation>Control of ?ualit"2$ %arasohn) *asi+ belie&s , ommi-men-./nershi. Feedba+k
@# De!ing: Plan+ Do+ Chec'+ Act
1 Point Theor" of *anage!ent
%een eadl! iseases and /bs-a+les# $uran: $uran Trilog"?ualit"Planning+Control+I!proe!ent
# Ishi'a&a: ,ish Bone Diagra!: Cause and Effect Anal"sis
6$ (agu+hi) Si Sig!a I!proe!ent of Processes and Products
F# Norton>
/aplan: The Balanced Scorecard
The Strateg" ,ocused Organi)ation
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Balanced Scorecard
A managemen- s!s-em -ha- +an +hannel -he energies.abili-ies. and se+i&i+ knoledge held b! eole
-hroughou- -he organi'a-ion -oard a+hieing long-erm
s-ra-egi+ goals -o guide +urren- er&orman+e and -arge-
&u-ure er&orman+e using measures in &our +a-egories)
&inan+ial er&orman+e. +us-omer knoledge. in-ernalbusiness ro+esses. and learning and gro-h$
%u++ess
a robus- learning s!s-em &or -es-ing. gaining &eedba+k on.
and uda-ing -he organi'a-ions s-ra-eg!$
ines- in -he long -erm ra-her -han
manage -he bo--om line -o um u shor-
-erm gains$
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1ltimate 2oal, to Become a3
#45A4E2678C1#ED 852A9I:A4I89
1
2
3 4
5
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VISION
Why we existVALUES
Whats important to us MISSIONWhat we want to be
STRATEGY
Our game plan
BALANCED SCORECARDImplementation & Focus
STRATEGIC INITIATIVES
What we need to do
DESIRED STRATEGIC OUTCOMES
Satisfied
SHAREHOLDERS
Deli!ted
CUSTOMERS
Efficient and Effecti"e
#ROCESSES
Moti"ated $ #re%ared
&OR'(ORCE
#ERSONAL OB)ECTIVES
What I need to do
Finan+ial us-omers :n-ernal ;ro+ess
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%ISION*ISSION
STRATE;PSP
installations4# Conduct Readiness and AT Site Support
Conferences
@# I!proe PRO,IS Readiness>Tas'ing
*anage!ent
# I!proe !onitoring and reporting of
securit" threats
# I!proe i!ple!entation of Ar!" Training
*anage!ent S"ste! : CT;+ .ongrange
calendar+ *RR &or'shop
3# *ai!i)e training opportunities
North Atlantic Regional *edical Co!!and
g + g p
,ull" I!ple!ent Balanced Scorecard in NAR*C
ACoS Objective Champion: (Legend):
Operations
Clinical
Logistics
Information Management/Information Technology
Resource Management
Personnel
Garrison
F# Deelop Co!prehensie Clinical Business
Plan !ai!i)ing *T, utili)ation
# I!proe predicta(ilit" and sta(ilit" ofpatient care !anpo&er
2# I!ple!ent Data ?ualit" Progra!: alidate
and !onitor D? process and reports
15#I!ple!ent process to !onitor and i!proe
DoD Patient Safet" Progra! co!pliance
11# Deelop and i!ple!ent Co!ple Care
Coordination Plan
14# I!proe Hualit" !anage!ent progra!
co!pliance in areas of $CA0O+ CC?AS+
0IPAA+ and Patient Safet" Progra!
s
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Building A Balanced Scorecard
*aJor Pre!ise: Each organi)ation is uniHue
1# Preparation: Define the appropriate (usiness unit
4# Interie&s: ,irst Round Senior !anager>s &ith BSC intro and
(ac'ground !aterials@# Eecutie -or'shop: ,irst Round Top !anage!ent deelop
scorecard 6.in'ing *easure!ents to Strateg"9
# Interie&s: Second Round Tentatie Scorecard
# Eecutie -or'shop: Second Round attend (" groups !iddle
!anagers+ cha!pions+ !easures+ targets
3# Eecutie -or'shop: Third Round: Eecutie ,inal consensus
F# I!ple!entation Tea!
s
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SPEED
A.TITUDE
DIRECTION
PITC0
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Three ,inancial The!es:
Reenue ;ro&th and *i
Cost Reduction > Productiit" I!proe!ent
Asset Utili)ation > Inest!ent Strateg"
s
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Three Core Custo!er %alue Propositions:
The 'e" concept for understanding driers of the
core !easure!ents of satisfaction+ acHuisition+
retention+ and !ar'et and account share
Product > Serice Attri(utes
Custo!er Relationship
I!age and Reputation
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INTERNA. BUSINESS PROCESS
Critical internal (usiness processes in &hich theorgani)ation !ust ecel:
Delier on the alue propositions of custo!ers in
targeted !ar'et seg!ents
Satisf" shareholder epectations of ecellent returns
*easures should (e focused on internal
process that &ill hae the greatest i!pact oncusto!er satisfaction and achieing
organi)ation7s o(Jecties
Us Organi)ational .earning and ;ro&th co!e fro!
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Organi)ational .earning and ;ro&th co!e fro!
three principal sources:
;eole
%!s-ems
/rgani'a-ional ;ro+edures
,inancial+ custo!er and internal process perspecties
of BSC &ill reeal large gaps (et&een eisting
capa(ilities of people+ s"ste!s+ and procedures and&hat &ill (e reHuired to achiee targets for
(rea'through perfor!ance
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1# Properl" constructed BSC should tell the stor" of the
organi)ations strateg" single strateg"
4# The !easure!ent s"ste! should !a'e relationship a!ongo(Jecties eplicit so the" can (e !anaged and alidated
@# Articulate the 6theor" of (usiness9 co!petitie ecellence
# Cause and effect should perade all four perspecties
# Short ter! targets
3# Too !an" !easures too co!plicated for organi)ation to
a(sor(
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Return on Capital E!plo"ed
Custo!er .o"alt"
OnTi!e Delier"
Process ?ualit" Process C"cle Ti!e
E!plo"ee S'ills
,INANCIA.
CUSTO*ER
INTERNA.
.EARNIN;
K ;RO-T0
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Cause and Effect ?inages Example
FinancialR/:
Reenue MiC
#ro-h
Customer
%a-is&a+-ion
Re-en-ion
Rela-ionshis
Process
e !+le
Jrs Ius-
?e ;rod Re
L & G
ReIemlo!ee
Kob oerage
#oals Aligned
*roaden Reenue MiC
us-omer %a-is&a+-ion
:n+rease us-omer on&iden+e
nders-and us-omer
%egmen-s
eelo -he
/&&ering
@mlo!ee %a-is&a+-ion
:mroe us-omer :n&orma-ion *roaden %kills Reard Alignmen-
:mroe Re-urns
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/rgani'a-ions should hae hundreds. -housands o&
measures -ha- -he! +an moni-or -o ensure -ha- -he! are
&un+-ioning as eCe+-ed and -ha- ill signal hen+orre+-ie a+-ion mus- be -aken$
*( -hese are no- -he driers o& business +ome-i-ie
su++ess as are ou-+ome and er&orman+e drier
measures on *%
iagnos-i+ Measures) moni-or he-her business in
+on-rol
%-ra-egi+ Measures) e&ine a s-ra-eg! designed &or
+ome-i-ie eC+ellen+e. dire+- &o+us
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.ead Indicators: ,ocus !anage!ent Attention on the
Driers of Perfor!ance
e#g# Clai!s ?ualit" Audit Staff Deelop!ent
Plan
.ag Indicators: Core Outco!e *easures
e#g# Clai!s ,reHuenc" Staff Productiit"
Clai!s Seerit"
.oss Ratio
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,inancial
;ro&i-abili-!
#ro-h
%hareholder
Lalue
ash Flo
;ro&i-s
%ales #ro-h
R/:. R/@
= R/A
Custo!er
Resonse
%eri+e
uali-!
!+le (ime
A++ura+!
/n (ime
@rror Ra-es
Organi)ation
:nnoa-ion
on-$ :mroe
:n-elle+-ual
Asse-s
?e ;rodI
%ales
(ime Redu+-ion
Mk- Lalue
Processes
!+le (ime
uali-!
Re-en-ion
(urn Around
(ime -o Mk-
@rror Ra-es
(urnoer
Source: Professor. Kaplan and David P. Norton
?ining %erspectives
To achieve ourvision, howshould weappear to ourcustomers?
To achieve ourvision, how willwe sustain ourability to change
& improve?
To succeedfinancially, howshould weappear to ourstaeholders?
To satisfy ourcustomers, whatbusinessprocesses mustwe e!cel at?
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BSC C0A*PIONS>.EAD
1# Responsi(le for specific Strategic O(Jectie
4# Identif" reHuired coordination
@# Assign su(ordinate support and tas'sData Sources
Collection *ethod
Data Aaili(ilit"
,reHuenc" of reporting
Initiaties Supporting Strategic O(Jectie
## *onitor progress to target
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M@A%R@M@?( %G%(@M
(@M;
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#corecard Nealt! C!ecM
Capability to Drive Change
Measures are Non-Conflicting
Clear Linkages Between Measures
Aligned to Strategic b!ectives
Balance of Measures
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#corecard Nealt! C!ecM
Support and wnership "stablished
#esults are Analy$ed and #eported
Baseline and %argets &dentified
Measures are 'Actionable( and %ied to
&nitiatives
Co)prehensive Definitions "stablished