1. Balanced Scorecard

2. A new approach to strategic management was
developed in the early 1990's by Drs. Robert
Kaplan (Harvard Business School) and David
Norton. The balanced scorecard approach provides
a clear prescription as to what companies should
measure in order to 'balance' the financial
perspective.
Balanced Scorecard is the Management System
that enables organisation to clarify their vision and
strategy and translate them into action.It provides
feedback on both internal process abd external
outcomes in order to continously improve strategic
performance and results.

3. Kaplan and Norton describe Balanced Scorecard as:
“ Balanced scorecard retains traditional financial
measures. But financial measures tell the story of past
events, an adequate story for industrial age companies for
which investments in long-term capabilities and customer
relationships were not critical for success. These financial
measures are inadequate, however, for guiding and
evaluating the journey that information age companies
must make to create future value through investment in
customers, suppliers, employees, processes, technology,
and innovation.”

4. Financial Perspectives
Customer Business Process
Perspectives Vision and Perspectives
Strategy
Learning and Growth
perspectives

5. Explanation of the 4 perspectives
Financial Perspectives:
•Revenue Growth, Profit
• Cost Reduction
• Productivity Improvement
• Asset Utilization
• Investments

6. Learning and Growth perspective
• Learning and growth constitute the essential
foundation for success of any knowledge-worker
organization.
• Employee training and corporate cultural attitude
related to both individual and corporate self-
improvement.
• It includes things like mentor and tutors, within
the organization as well as ease of communication
among workers that allows them to readily get
help on a problem when it is needed.
• It includes technological tools “high performance
work system”

7. Learning and growth Perspective
Improving Capabilities for Delivering Values to
Customer
• People
• System
• Organization Procedure

8. Learning and growth Perspective
Core Measurement
Results
Employee Employee
Retention Productivity
Employee
Satisfaction
Enablers
Staff Technology Climate of
Competencies Infrastructure Action

9. Business Process Perspective
• There are 3 business process that can be identified:
Strategic management process
Mission-oriented process (special function of
government offices and unique problems are
encountered)
Support-process (repetitive in nature and easier to
measure and benchmark)

10. Business Process Perspective
Critical internal process in which organization must
deal. These processes enable to deliver the value
propositions to customers and satisfy stake holders
expectations.
Innovation Process
- Product Design
- Product Development
- Process Implementation
• Operating Process
- Manufacturing
- Marketing

11. Customer Perspective
• Due to increasing realization of customer focused
and customer satisfaction in any organization
therefore developing the metrics for satisfaction
customers should be analyzed in terms of kind of
customers and kind of processes for which we are
providing a product or service to those customers
groups.
In today’s business scenario “Customer is the king”

12. Customer perspective
• Customer Satisfaction
• Customer Retention
• New Customer Acquisition
• Customer Profitability
• Market Share
• Measures of value Proposition to customer
- Short Lead Time
- On Time Delivery
- Innovative Products
- Anticipating Needs

13. Customer Perspective – Core Measure
Market Share
Customer Customer Customer
Acquisition Profitability Retention
Customer
Satisfaction

14. Summary
Financial
Revenue
Perspective
Customer
Customer Loyalty
Perspective
On Time
Delivery
Internal
Process Process Cycle
Process Quality
Time
Learning and
Growth Employee Competitiveness