uploaded on 8th feb 2013

1. Balanced scorecard

2. What is balanced scorecard?
 It was developed to communicate the multiple linked
objectives that companies must achieve to compete on the
basis of innovation, not just tangible physical assets
 It translates the mission and strategy into objectives and
measures, organized into four perspectives

3. Strategies
 Financial perspective
 Customer perspective
 Internal business perspective
 Learning and growth perspective

4. Financial perspective
 Measures the financial performance and economic actions
 It indicates whether the company’s strategy , implementation
and execution are contributing to the bottom line customers
 Related to: profitability, EVA, sales growth, generation of
cash flows

5. Customer perspective
 Identifying customers market segments
 Measuring the performance in the market segments
 Measures like customer satisfaction, customer retention ,new
customer acquisition, customer profitability, market and
account share in segment
 Attributes that organizes the value proposition
 Product and service attributes
 Customer relationship
 Image and reputation

6. Internal business process perspective
Identifies the critical internal process in which organizations
must excel.
 Deliver the value proposition that will attract and retain
customers in targeted market segments
 Satisfy shareholder expectation of excellent financial returns

7. Generic value chain model
Customer
Need
identified
Innovation
cycle Operations Post sales
cycle Service
cycle
Customer
Need
satisfied

8. Learning and growth perspective
 Identifies the infrastructure that the organization must build to
create long term growth and improvement
 Three principle sources
 People
 Systems
 Organization
 Reskilling employees, enhancing information technology and
systems, aligning organizational procedures and routine

9. Objectives
Strategic financial objectives
 Improve return on spending
 Reduce costs
 Increase revenues
 Reduce risk

10. Strategic customer objectives
 Offer customized value proposition to targeted customer
segments
 Define proposition through different customer values
 Understand the economic fulfilling various propositions
 Target customers whose value propositions can be fulfilled
profitably
 Differentiators act
 Perform consistently in the eyes of the customer
 Service customers expediently
 Eliminate mistakes

11. Internal business objectives
 Innovation
 Make the market
 Create the product
 Delivery
 Market and sell
 Distribute and service

12. Learning and growth objectives
 Creating information assets
 Reskilling: strategic job and competencies
 Accountability and reward linkage
 Focus our resources

13. Linking of multiple score card measures into a single
strategy
 Cause and effect relationship
 Performance drivers