1. The Abstraction Series Topic 1 Balanced Scorecard

2. Originated by Dr. Robert Kaplan and David Norton A Performance Measurement Framework which added non-financial measures to counter balance the effects of Financial performance Aligns Business Activities to the Vision and Strategy of the Organization Balanced Scorecard

3. The Four layers

4. Problems Balanced scorecard can Solve

5. The Nine Step Framework

6. Performance Measures Providing a way to see if the strategy is working Focus employees' attention on what matters most to success Allow measurement of accomplishments, not just of the work that is performed Provide a common language for communication Explicitly defined terms of owner, unit of measure, collection frequency, data quality, expected value(targets), and thresholds Ensuring Valid Measurement of the right things Verifiable Measures to Ensure Data Collection Accuracy

7. Asking the Right Questions Who are our profitable customers? Do we pay the most attention to those customers? Do we know what these customers expect from us now and in the (near) future? Do we develop the products and services that will keep us in the running? Do our employees develop the knowledge and skills that the markets (will) ask? Do we recruit the right people?

8. Overall Process Phase 1: The Strategic Foundation Phase 2: Three Critical Components Phase 3: Deployment

10. Determine Major Strategic Areas for focussed efforts

11. Build a Strategic Grid for each Major Strategic AreaStep 1: Strategic Alignment and Communication

12. Phase 1: Step 1: Communicate After Clearly formulating the Strategy it needs to be effectively Communicated

13. Phase 1: Step 2: Strategic Areas Strategic Success Through Fence-Lined Strategic Areas is required for Clear Success Demarcations Linking Strategic Goal to a Strategic Area

14. Phase 1: Step 3: Strategic Grids Structuring the Balanced Scorecard on Four Layers i.e. Financial, Customer, Internal Processes and Learning.

15. Phase 1: Step 3: Strategic Grids Structuring the Balanced Scorecard on Four Layers i.e. Financial, Customer, Internal Processes and Learning.

16. Phase 1: Step 3: Strategic Grids Structuring the Balanced Scorecard on Four Layers i.e. Financial, Customer, Internal Processes and Learning.

22. Phase 3: Deployment Review and Re-alignment Integration of Other Business Areas with the Strategically improved Areas Finally linking compensation with the scorecards Building the Scorecards for the Entire Value Chain i.e. Customers, Production, sales, Innovation and all such elements

23. Phase 3: Step 7: Best Practices Easy to Achieve but difficult to maintain because of Perfectionist Goals Successful companies have developed more tolerance levels

24. A Consumer Electronics Manufacturing Firm

25. A Consumer Electronics Manufacturing Firm

26. Questions????

27. Epstein, Marc, and Jean-François Manzoni. "Implementing Corporate Strategy: From Tableaux de Bord to Balanced Scorecards." European Management Journal , April 1998, pp. 190-203. "Harvard Business Review Balanced Scorecard Report." Harvard Business Review, 2002 to present (bimonthly). Kaplan, Robert S., and David P. Norton. Alignment: Using the Balanced Scorecard to Create Corporate Synergies. Harvard Business School Press, 2006. Kaplan, Robert S., and David P. Norton. "The Balanced Scorecard: Measures That Drive Performance." Harvard Business Review, July 2005, pp. 71-79. Kaplan, Robert S., and David P. Norton. The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment. Harvard Business School Press, 2000. Kaplan, Robert S., and David P. Norton. Strategy Maps: Converting Intangible Assets into Tangible Outcomes. Harvard Business School Press, 2004. References

28. Niven, Paul R. Balanced Scorecard Diagnostics: Maintaining Maximum Performance. John Wiley & Sons, 2005. Niven, Paul R. Balanced Scorecard Step-by-Step: Maximizing Performance and Maintaining Results, 2d ed. John Wiley & Sons, 2006. http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx http://www.clickhrd.com/knowledge_base/images/metrus-balance-scorecard.jpg http://www.strategy2act.com/solutions/bsc_toolkit/9-scorecard-helps-to-solve-full.gif http://www.exinfm.com/training/pdfiles/course11r.pdf References