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Really
   Simple
 Balanced
Scorecard
Textbook examples of
 Balanced Scorecard
     are complex
Manager’s Toolbox example of
    Balanced Scorecard
          is simple
1 A4
to prepare

                  1 slide
             to communicate

                                 1 A4
                              to execute
insert
Learning                Acquiring knowledge
perspective




Process                Summarizing knowledge
perspective




Customer      :-)       Customer satisfaction
perspective




Financial     ¥€$        Profitable growth
perspective
Textbooks say
“Ultimately all causal paths
lead to financial measures.”
Ultimately all causal paths
  lead to financial measures

Financial perspective


Customer perspective


Process perspective


Learning perspective
That’s an uphill battle!


Financial perspective


Customer perspective


Process perspective


Learning perspective
That’s an uphill battle!

                         Been there,
Financial perspective     done that!

Customer perspective


Process perspective


Learning perspective
They stumbled on learning
                        With jeans, sneakers & ¥100 raincoats
                        In really, really, really bad hail storm
                        1 hour to nearest shelter
Financial perspective


Customer perspective


Process perspective


Learning perspective
The fundamental questions


Financial perspective   “To succeed financially, how should we
                        appear to our shareholders?”

Customer perspective    “To achieve our vision, how should we
                        appear to our customers?”

Process perspective     “To satisfy our shareholders and customers,
                        what business processes must we excel at?”

Learning perspective    “To achieve our vision, how will we
                        sustain our ability to change and improve?”
To achieve our vision,
how will we sustain our ability
to change and improve?
Manager’s Toolbox
turns the perspectives
upside down
Learning      insert      How will we sustain our
perspective            ability to change and improve?



Process                  What business processes
perspective                must we excel at?



Customer      :-)            How should we
perspective              appear to our customers?



Financial     ¥€$           How should we
perspective            appear to our shareholders?
Ultimately all causal paths
        start from
   learning perspective
Ultimately all causal paths
start from learning perspective
                     Learning perspective



                      Process perspective



                     Customer perspective



                     Financial perspective
Coming downhill is fun!
             Learning perspective



              Process perspective



             Customer perspective



             Financial perspective
Actually it is a child's play!
     My son
                            Learning perspective
and my daughter
 ready to show
  what they’ve
    learned.                 Process perspective



                           Customer perspective



                           Financial perspective
And business is down there
“Let’s take a break
  down there!”        Learning perspective



                       Process perspective



                      Customer perspective



                      Financial perspective
Textbook says
   Balanced Scorecard
is a management system
And that’s true!
Balanced Scorecard is a
   Management
       System
Not just a
measurement system
You do not just measure
    your heart beat
You use the
   heart rate monitor
to manage your exercise
In order to
      Last longer
       Feel good
  Improve fitness
  Control weight
              …
… and to improve learning

                  Rule #1:
                  Exercise boosts
                  brain power
                      Dr. John Medina
                           Brain Rules
Textbooks say
   “Strategy map helps
to communicate strategy.”
?
Does this really
help to communicate
their strategy to you?
The Chip brothers call it
  Curse of Knowledge
The Chip brothers call it
      Curse of Knowledge
Trying to tell you everything
about every possible strategy,
with perfect accuracy,
in one page.
The Chip brothers call it
      Curse of Knowledge
Trying to tell you everything
about every possible strategy,
with perfect accuracy,
in one page.                        t
                               Is no tick
                                  to s
                             made
You need to
Make it simple,
find the core of the idea,
strip the idea down
to its most critical essence.
You need to
Make it simple,
find the core of the idea,
strip the idea down
to its most critical essence.


                              five
                             other
                         +        =
                             sticky
                           elements
First we need to go
 back to the basics
Mission statement
tells you what the company is now
“We’re on
a mission from God!”
“We’re on
              a mission from God!”

Driven by their mission
“The Catholic orphanage
they grew up in
needs to pay
$5,000 taxes
in 11 days,
or else
it will be closed.”
“We’re on
              a mission from God!”

Driven by their mission       They’ll never get caught
“The Catholic orphanage                              by
they grew up in                             the police,
needs to pay                            ex-girlfriend,
$5,000 taxes                            Country Bob,
in 11 days,                           Good Old Boys,
or else                                 Illinois Nazis,
it will be closed.”                      more police,
                                      National Guard,
                                        SWAT teams.
Vision statement
outlines what a company
wants to be
“Imagine all the people
  living life in peace!”
Well communicated Vision
             If you imagine,
            can you hear it?
Strategy
is a long term plan of action
designed to achieve a particular
goal, most often "winning"
A map is handy to communicate
           (=Strategy map)

     how you plan to get
             (=Strategy)

     from where you are
             (=Mission)

   to where you want to be
              (=Vision)
Now, let’s make the
     Strategy map
for Manager’s Toolbox
1) Take an A4 paper
2) Draw a table
3) Fill in the key words
4) Fill in the Mission
         Life-long learning
5) Fill in the Vision
Improved management and leadership skills
6) Fill in the Strategy
To internalize and summarize the knowledge
    I need during my management career.
7) Draw the Strategy Map
Does this communicate
 my strategy to you?
That was just the beginning…
Balanced
Scorecard
is a
management
tool
And should be used in
management meetings
8) Measures are checked
Oops, the measures…
Let’s take just one example,
 but a typically difficult one
Customer satisfaction
I am the only customer to
  Manager’s Toolbox and
    I will be satisfied if
People visit my blog
and leave comments
People visit my blog
and leave comments
                 here
People visit my blog
and leave comments
             or
       view my presentations
          and download them
People visit my blog
and leave comments
             or
       view my presentations
          and download them
                  here
People visit my blog
and leave comments
             or
       view my presentations
          and download them
                  here
Where were we?
Balanced Scorecard
     is used in
management meetings
8) Measures are checked
9) Achievement is checked
10)Trend is followed
And last but not least
11)Actions are agreed
8) And again in next meeting
That is Manager’s Toolbox’s

                          Really
                         Simple
                       Balanced
                      Scorecard

                              By Samurai
1 A4 to prepare
1 slide to communicate
1 A4 to execute
But you need
100%
Management
commitment
to build
and use a
management
system
Balanced scorecard

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Balanced scorecard