1. Presented By: Hani Zamani (MC112030)
Muhammad ALiif Ahmad (MC112098)
Nesa Nabipour (MC112075)
Nurhayati Othman (MC112100)
Sakirin Tam (MC112109)
2. Introduction
Is an framework for a strategic measurement and
management system Balance
Scorecard
an approach for driving
organizational improvement toward
pre-selected goals
integrated management system
components:
1) strategic management system
2) communication tool,
3) measurement system
3. History of BSC
1996
1990s
• Using the
• Robert Kaplan Balanced
and David Norton Scorecard as a
develop BSC Strategic
• links strategy with Management
performance System
1993 Currently
• Putting the • used by some of
Balanced the world's most
Scorecard to Work successful
companies
4. Component of BSC
Identify financial measures.
- return on capital employed
- operating income
- Customer retention - economic value added
- Customer satisfaction - Salve growth & cash flow
- Market share target segments
- Operation
where it can improve and create value - Internal value chain
- Employee satisfaction - Innovation
- Skill & moral - Sale service
- Employee retention.
- Real time system
7. Phases of BSC
Kaplan and Norton, 2000
Planning Technical
Readiness Implementation Organizational Operation/Mo
Assessment • Leadership Team Integration
• Input Information dification
• Identify • Strategic Review
(mission/vision/str
(vision/strategies/ • Integrate • Data Update
Needs measures) /Existing
ategic plan) • Analysis
• Identify • Build Scorecards • Communicate
• Assign Strategies • Regular
Resources
to BSC • Set Targets and Objectives Reporting
• Confirm Perspectives Alert Levels • Assign • Refinement
Leadership
• Develop Strategy • Standardize Data Measurement
Commitment Definitions Data
Map
• Identify/Agree on • Presentation of Responsibility
Measures Data
• Develop
Implementation
Plan
8.
9. 0 Zhang Shu Engineering.
0 Revenue of approximately 10 million US dollars per
year.
0 It is striving to maintain its viability in the highly
competitive engineering market.
0 It develops its business strategy along with objectives.
10. Perspectiv Strategy Objective
e
Financial • We will ensure that we use our resources and • Financial success.
people to maintain financial success.
Customer • We will meet or exceed our customers’ current • Customers impressed with quality of engineering
and future expectations and requirements with solutions and services.
innovative, high quality engineering solutions and • Attract new customers.
superior service, at a reasonable cost. • Retain current customers.
• Provide on-time delivery of solutions, goods and
services.
Internal • We will provide our engineering and • Achieve and maintain cutting-edge production
programming professionals and staff with an capability.
efficient and effective means to produce and deliver • Maintain or if necessary acquire well-functioning
high quality, innovative technical engineering facilities.
solutions and services in a timely fashion.
Innovation • We will attract and retain high calibre people and • Maintain a trained and knowledgeable workforce.
Learning promote an environment that develops their • Be on the cutting edge of engineering, computer
and technical, interpersonal, and business skills and and business technology.
Growth knowledge. • Develop business through innovative client
• We will strive to develop and maintain an active identification and acquisition
means of attracting new clients and a means to
expand our practice into related engineering and
computer development areas.
• We will strive to be aware and on the cutting-edge
of engineering and computer technology.
11. Perspective Measures Targets
Financial • Increased operating income. • Increase by 10%.
• Dollar amount of operating expenses. • Maintain expense levels.
Customer • Number of new customers. • Increase by 50%
• Number of repeat customers. • Increase 10%
• Number of requests for clarifications. • One per sheet
• Number of required revisions. • Decrease by 30%
• Number of missed project deadlines. • Reduce to zero
Internal • Software version currency. • Use latest software versions
• Number of departures from the firm’s • Reduce to zero
engineering standards.
• Use of templates. • Use at least 90%
• Number of common elements used. • Increase by 10%
Innovation • Amount of language training for each • 2 hours per week
Learning and employee. • 2 sessions year
Growth • Amount of business training for each • 5 per year
employee.
• Amount of technical training, seminars or • Increase by 10%
conferences attended for each employee.
• Number of price quotations from innovative
client sources.
12. 0 From both strategy map, we found that the company’s
targets is tied to measure and each measure is tied to
an objectives.
0 Other point is each objective is tied to at least one
element of company’s strategy.
0 The success of any balanced scorecard
implementation is depend in that critical connection.
0 The reason: Short-term strategy execution, and
strategy is the means of realizing the company’s
mission, values, and vision.
13. Advantages of BSC
1. Balance between financial and non-financial indicators of success
2. Balance between internal and external constituents of the
organization
3. Balance between lag and lead indicators of performance
14. Limitations
Cause-and-effect relations are not time-wise connected and not related in
reality
External environment and several interest groups are out of picture
Hierarchical top-down set-up creates problems in implementation
Unsuitability to unique or unhealthy enterprises