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    Balance Score Card

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    Shabi Aziz
    The balanced scorecard is a strategic planning and management system that provides organizations a method to align business activities with their vision and strategy. It was first introduced in 1992 by Robert Kaplan and David Norton and has since been widely adopted. The balanced scorecard measures performance across four perspectives: financial, customer, internal processes, and learning and growth. It helps organizations execute their strategy by translating it into objectives and measures across these perspectives and communicating strategic objectives throughout the organization.

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    Balance Score Card

    Uploaded by

    Shabi Aziz
    100 views23 pages
    The balanced scorecard is a strategic planning and management system that provides organizations a method to align business activities with their vision and strategy. It was first introduced in 1992 by Robert Kaplan and David Norton and has since been widely adopted. The balanced scorecard measures performance across four perspectives: financial, customer, internal processes, and learning and growth. It helps organizations execute their strategy by translating it into objectives and measures across these perspectives and communicating strategic objectives throughout the organization.

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    The balanced scorecard is a strategic planning and management system that provides organizations a method to align business activities with their vision and strategy. It was first introduced in 1992 by Robert Kaplan and David Norton and has since been widely adopted. The balanced scorecard measures performance across four perspectives: financial, customer, internal processes, and learning and growth. It helps organizations execute their strategy by translating it into objectives and measures across these perspectives and communicating strategic objectives throughout the organization.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    100 views23 pages

    Balance Score Card

    Uploaded by

    Shabi Aziz
    The balanced scorecard is a strategic planning and management system that provides organizations a method to align business activities with their vision and strategy. It was first introduced in 1992 by Robert Kaplan and David Norton and has since been widely adopted. The balanced scorecard measures performance across four perspectives: financial, customer, internal processes, and learning and growth. It helps organizations execute their strategy by translating it into objectives and measures across these perspectives and communicating strategic objectives throughout the organization.

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    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
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    Balance Scorecard

    What is the balanced scorecard?


    Strategic planning and management system being used in business and industry, government, and nonprofit organizations worldwide. Provides a method of aligning business activities to the vision and strategy of the organization.

    History
    First studied in1992 by Robert Kaplan and David Norton. In 1996, they published the book The Balanced Scorecard They revisited Balanced Scorecards after decade.

    Why Balance Scorecard?


    Is organization working according to our strategy and vision? What are the financial objectives of the organization? Are our customers satisfied? Are the goals of the company achieving properly? etc.

    How Should the BSC Be Used?


    Communication Informing learning system

    Alternative approaches
    The Performance Prism Results Based Management Third Generation Balanced Scorecard. Applied Information Economics (AIE)

    The four perspectives


    Financial perspective; Customer perspective; Internal process perspective; Innovation and learning perspective.

    The four perspectives


    Financial Cash flow Return on investment Financial result Return on capital employed Return on equity

    The four perspectives


    Customer Delivery performance to customer - by rate Quality performance to customer - by quality Customer satisfaction rate Customer loyalty Customer retention

    The four perspectives


    Internal business processes Number of activities Accident ratios Opportunity success rate Overall equipment effectiveness

    The four perspectives


    Learning and growth Investment Rate Internal Promotions % Employee Turnover Gender Ratios Illness rate

    What is a Strategy?
    Set of hypotheses about cause. Defining an organization's strategy involves: 1.market i.e. local, national, global. 2.customer i.e. Broad or narrow, age group, income level etc. 3.internal processes needed to capture and satisfy those customers. 4.individual and organizational capabilities required in the other perspectives.

    Strategy Mapping
    Strategy maps are communication tools used to tell a story of how value is created for the organization. They show a logical, step-by-step connection between strategic objectives

    What do you try to Balance?


    1) Short term and Long term, 2) External (for shareholders and customers) and Internal (for critical business processes, innovation, and learning and growth), 3) Leading indicators (outcomes desired and performance drivers) and Lagging indicators (outcomes),

    4) Objective measures (e.g., financial) and Subjective measures (e.g., many non-financial).

    Uses
    Clarifying Strategy Communicating strategic objective Planning and setting goals Strategic feedback and learning

    Kaplan and Norton found that companies are using Balanced Scorecards to: Drive strategy execution; Clarify strategy and make strategy operational; Identify and align strategic initiatives; Link budget with strategy; Align the organization with strategy; Conduct periodic strategic performance reviews to learn about and improve strategy.

    Benefits of the balanced scorecard approach?


    Improved organization alignment Improved communications, both internally and externally Linked strategy and operations More emphasis on strategy and organizational results Integrated strategic planning and management

    Balanced scorecard development


    1. Organizational Assessment 2. Strategy Development 3. Strategic Objectives 4. Strategy Mapping 5. Performance Measures and Targets 6. Strategic Initiatives 7. Automation 8. Cascading the BSC Throughout the Organization 9. Evaluation

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