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    Revised BSC Solvay

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    The Balanced Scorecard is a strategic planning and management system used by businesses and organizations to translate their vision and strategy into tangible objectives and measures. It provides managers a more balanced view of organizational performance by adding non-financial metrics in four key perspectives: customer, internal business processes, learning and growth, and financial. The Balanced Scorecard helps organizations execute their strategy more effectively by communicating strategic objectives and linking them to departmental and individual goals and incentives. Though implementation presents challenges, organizations that adopt the Balanced Scorecard with strong leadership, engage employees, and make strategy a continuous process can achieve high performance.

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    Revised BSC Solvay

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    Anonymous q9kdSj
    39 views14 pages
    The Balanced Scorecard is a strategic planning and management system used by businesses and organizations to translate their vision and strategy into tangible objectives and measures. It provides managers a more balanced view of organizational performance by adding non-financial metrics in four key perspectives: customer, internal business processes, learning and growth, and financial. The Balanced Scorecard helps organizations execute their strategy more effectively by communicating strategic objectives and linking them to departmental and individual goals and incentives. Though implementation presents challenges, organizations that adopt the Balanced Scorecard with strong leadership, engage employees, and make strategy a continuous process can achieve high performance.

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    balance score card presentation

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    Revised Bsc Solvay

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    The Balanced Scorecard is a strategic planning and management system used by businesses and organizations to translate their vision and strategy into tangible objectives and measures. It provides managers a more balanced view of organizational performance by adding non-financial metrics in four key perspectives: customer, internal business processes, learning and growth, and financial. The Balanced Scorecard helps organizations execute their strategy more effectively by communicating strategic objectives and linking them to departmental and individual goals and incentives. Though implementation presents challenges, organizations that adopt the Balanced Scorecard with strong leadership, engage employees, and make strategy a continuous process can achieve high performance.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    39 views14 pages

    Revised BSC Solvay

    Uploaded by

    Anonymous q9kdSj
    The Balanced Scorecard is a strategic planning and management system used by businesses and organizations to translate their vision and strategy into tangible objectives and measures. It provides managers a more balanced view of organizational performance by adding non-financial metrics in four key perspectives: customer, internal business processes, learning and growth, and financial. The Balanced Scorecard helps organizations execute their strategy more effectively by communicating strategic objectives and linking them to departmental and individual goals and incentives. Though implementation presents challenges, organizations that adopt the Balanced Scorecard with strong leadership, engage employees, and make strategy a continuous process can achieve high performance.

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    of 14

    BALANCED

    SCORECARD

    THIMCNBNG
    Group 6:
    Le Thi Lam Nga
    Le Anh Quan
    Dao Tan Linh
    Pham Ngoc Thai
    Nguyen Thi Bich

    Outline
    Origin & Definition
    Challenges & Purpose
    Users & Examples
    Critics
    Conclusion

    Origin
    It was originated by Drs.
    Robert Kaplan (Harvard
    Business School) and David
    Norton as a performance
    measurement
    framework
    that added strategic nonfinancial
    performance
    measures
    to
    traditional
    financial metrics to give
    managers and executives a
    more 'balanced' view of
    organizational

    A Measurement
    System?

    A Management
    System?

    A Management
    Philosophy?

    What Is a Balanced
    Scorecard?

    The Balanced
    Scorecard
    What is it?
    Definition:

    a strategic planning and management

    system that is used extensively in


    business and industry, government, and
    non profit organizations worldwide;

    Improve internal and external

    communications, and monitor


    organization performance against
    strategic goals.

    Translating Vision and


    Strategy: Four
    Perspectives

    Example

    Challenges that BSC addresses

    The Vision
    Only 5% of the work force
    understands the strategy
    The People
    Only 25% of managers have
    incentives linked to strategy

    The Management

    9 of 10 companies
    fail to execute
    strategy

    60% of organizations dont link


    budgets to strategy
    The Resource

    85% of executive teams spend


    less than one hour per month
    discussing strategy

    What is good for?

    The Balanced Scorecard identifies the factors that create long-term


    economic value in an organization, for example:

    Customer Focus

    Business Processes: deliver the value proposition to targeted


    customers

    Organizational Learning & Growth:

    Customers

    Processes

    People

    Balanced Scorecard
    Adopters
    Mobil

    1993

    #6 in
    profitability

    (USM&R)

    1993

    Stock Price = $59

    Property & Casualty

    Brown & Root Engineering


    (Rockwater)

    Retail Bank

    $275M loss

    1995

    #1 in profitability

    1996

    #1 in profitability

    1997

    #1 in profitability

    1994
    1995
    1996
    1997

    Profit

    Stock

    $15M
    $60M
    $80M
    $98M

    $74
    $114
    $146
    $205

    1993

    Losing
    money

    1996

    #1 in growth
    and
    profitability

    1993

    Profits = $x

    1994
    1995
    1996

    Profits = $8x
    Profits = $13x
    Profits = $19x

    BSC Is Readily Adapted to Non-Profit and


    Government Organizations
    The Mission
    "If we succeed, how
    will we look to our
    financial donors?

    To achieve our vision,


    how must we look to
    our customers?

    To satisfy our customers,


    financial donors and mission,
    what business processes
    must we excel at?"
    To achieve our vision, how
    must our people learn,
    communicate, and work
    together?
    The Mission, rather than the financial / shareholder objectives,
    drives the organizations strategy

    Critics
    Does Not Provide Recommendations
    Resistance from Employees
    Not Fully Efficient
    Time consuming
    High Implementation Costs

    Conclusion: the Ingredients of


    Highly Successful Balanced
    Scorecard Programs
    4. Make Strategy a Continuous
    Process

    1. Leadership From the Top

    Create the Climate for Change

    Create a Common Focus for


    Change Activities

    Rationalize and Align the


    Organization

    2. Make Strategy Everyones Job

    Formulate

    Communicate

    Comprehensive Communication to
    Create Awareness
    Align Goals and Incentives
    Integrate Budgeting with Strategic
    Planning
    Align Resources and Initiatives

    STRATEGY

    Execute

    Strategic Feedback That Encourages


    Learning
    Executive Teams Manage Strategic
    Themes
    Testing Hypotheses, Adapting, and
    Learning

    Navigate

    3. Unlock and Focus Hidden Assets

    Reengineer Work Processes


    Create Knowledge Sharing Networks

    Thank you for


    listening
    Q&A Time

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