2. Outline
1) What is a Balanced Score Card ?
q Benefits to B.S.C.
q Components of B.S.C.
q Review System.
q Preparing the B.S.C. operating system
q Implementation.
q Timing.
q Inhibitors to success.
3. What is B.S.C.
• The Balanced Score Card is a “way to do business”
– It focuses on identifying key drivers which ensure operational
success.
– Challenges managers and team members to consistently
evaluate and review.
– Is a mechanism for ensuring day-to-day activities are aligned
with the company vision.
– Is a frame-work linking customer satisfaction, quality,
productivity and profitability.
– It provides a common language for communication.
4. Benefits to B.S.C.
• A disciplined system used to promote and manage
continuous improvement.
• Mechanism for organisational alignment (Individuals
understand company direction and their role)
• Key measurables provides focus for the entire
organisation.
5. Benefits to B.S.C.
• Data driven priorities (allows for efficient use of
resources).
• It drives system changes through established feedback
loops (Understand, discuss, analyse and make informed
decisions).
• Promotes team work across all functional areas (Builds
problem solving competencies).
6. Components of B.S.C.
Key
1. Key Measurables Measurables
2. Tools
3. Review System
4. Deployment System Deployment
B.S.C. Tools
System
“Corporate Key Measurables are Review
selected by senior management and System
should reflect the overall strategy and
direction of the organisation.”
7. Review System
Indicadores Clave FY 03 FY 04 FY 05 Objetivo Avr 05 v
Media Media Media (Media) oct-04 nov-04 Dic-04 Ene-05 feb-05 mar-05 Abr-05 may-05 jun-05 jul-05 Ago-05 sep-05 Target
SEGURIDAD
Accidentes / Mes 3,5 3,6 3,0 4,0 4,0 4,0 2,0 5,0 1,0 3,0 6,0 RED
SERVICIO
Entregas a tiempo 80,7 86,7 90,0 92,1 86,4 83,6 88,0 86,6 83,2 81,7 88,8 89,7 RED
Tiempo respuesta a precios 15,6 10,8 10,0 14,9 7,5 19,1 7,0 8,0 9,6 9,2 11,2 RED
Tiempo respuesta a muestras 22,4 19,5 17,0 16,1 20,5 19,2 27,5 19,4 17,3 16,7 18,9 RED
CALIDAD DE PRODUCTO
Coste reclamaciones y 20185 9171 16000 28275 3427 3418 16223 4708 3414 5674 7851 9548 GREEN
devoluciones por mes
No reclamaciones / entregas 1,79 2,15 1,40 2,30 1,73 0,80 2,11 2,28 3,04 2,59 3,23 1,29 RED
Horas formación / empleado 3,0 2,40 3,0 4,1 1,5 1,4 2,2 3,0 1,5 0,8 2,8 4,3 RED
COSTE
% Productividad (actual vs std) 88,4 85,8 93,83 95,0 92,2 89,3 94,0 100,5 100,6 92,1 91,0 91,0 RED
Gastos vs ventas 22,1 23,75 23,0 23,7 23,6 25,0 24,5 23,9 22,8 23,3 23,2 RED
% Mermas 2,5 4,7 4,43 4,2 5,0 4,3 3,8 3,8 4,2 5,1 4,8 4,5 RED
Absentismo / mes 7,7 8,52 6,5 8,03 7,34 6,83 9,18 7,05 8,51 10,2 11,1 RED
Ventas en € / empleado 8,01 7,71 9,24 7,39 7,80 6,45 8,41 8,73 9,75 6,50 6,65 RED
CRECIMIENTO
Ventas totales vs budget 90,88 100 98 96 80 103 89 98 83 80 RED
Ventas nuevos productos 10,69 5,84 15,00 5,74 6,31 4,15 6,53 4,05 3,76 6,27 9,87 RED
(% total de ventas)
Ventas potenciales de nuevos 18,51 20,00 18,51 18,53 18,63 15,41 17,31 19,21 21,95 RED
proyectos
• Regular Reviews - Structured and well defined
• Senior Mgmt - Monthly
• Departmental – Every Week / 2 Weeks
• Internal
Review B.S.C. itself once or twice a year
9. Key point of the B.S.C.
Strategy and Objectives are the KEY !!!
• Situation Analysis
– Internal and external assessment of company
• Review Vision
• Establish Strategic Plan
• Implement B.S.C.
– ….Journey…
10. Implementation
0.- Educate Top Management
1.- Select Key Measurables
2.- Establish Measurement Plan
3.- Review & Consolidate Charts
4.- Create The B.S.C. Manual
5.- Schedule Regular Reviews
6.- Set Performance Goals
7.- Review & Analyse Performance Data
8.- Plan for Problem Solving
9.- Internal Assessment of the B.S.C. Process
10.- Conduct a B.S.C. Assessment
11. Timing
• B.S.C. will not happen over night.
[ Training, selection of Measurables at all levels,
Improvement
and Problem Solving activities, Regular Reviews. ]
[ estimate 6 to 12 months ]
• Cultural change.
12. Inhibitors to Success
• Time (patience)
– Cultural change required, establish system for long-term growth.
• Lack of Management Support
– At all levels, consistent approach to B.S.C.. Regular reviews and teams
encouraged.
• Dictating Measurements
– Every level given freedom to select measures
• Not responding to data / Not react in front of data
