the balance scorecard ppt

1. THE BALANCE SCORECARD

2. INTRODUCTION
RIGHT DAVID
NORTON
LEFT ROBERT
KAPLAN

3. BALANCE SCORECARD
WHAT IS IT ??
Definition:
The Balanced Scorecard is a management tool that
provides stakeholders with a comprehensive measure
of how the organization is progressing towards the
achievement of its strategic goals.

4. THE BALANCE SCORECARD
WHAT IS IT??
DCDBalances financial and non-financial measures
Balances short and long-term measures
Balances performance drivers (leading indicators) with
outcome measures (lagging indicators)

5. d
Should contain just enough data to give a complete picture
of organizational performance… and no more!
Leads to strategic focus and organizational alignment

6. To achieve strategic objectives
 To provide quality with fewer resources
 To eliminate non-value added efforts
To align customer priorities and expectations with the customer
To track progress
To evaluate process changes
To continually improve
 To increase accountability

7. 4 ORIGINAL BUSINESS PERSPECTIVES
 The balanced scorecard model suggests that we view the organization from 4
perspectives.

8. C
CUSTOMER
PERSPECTIVETo Achieve our vision, what customer needs
must we serve ?
On the Customer perspective of the Balanced
Scorecard you need to reflect expectations of:
Partners (dealer, distributor), and
Customers

9. “number
one in
delivering
value to
customers”
Cost
Time
Quality
Service

10. INTERNAL
PROCESS
PERSPECTIVE
To satisfy our customers, in which business
processes must we excel?
• Focus on generic strategies and their
representation in Internal perspective;
• Give a framework to find and
map appropriate objectives,
• Discuss indicators that can be used, and
• Do an exercise for cascading of some top
level business objectives down to the
individual scorecards.

11. LEARNING & GROWTH
PERSPECTIVETo achieve our goals and accomplish core
activities, how must we learn, communicate and
work together?
In other words, in this perspective we should
explain what the company has to learn in
order to:
• Satisfy customer’s needs,
• Improve business processes, and
• Achieve financial goals.

12. Learning &
growth
perspective
Employee
turnover
Training
&learning
opportunities
Is there the
correct level
of expertise
for the job ?
Job
satisfaction

13. Financial Perspective To satisfy our constituents, what financial and
regulatory objectives must we accomplish?

14. Financial
perspective
Cash
flow
Financial
year
(Quarterly/
yearly)
Return on
capital
employed
Return on
investment