Balanced score card 2 www.mobilemoviesite.com

1. By
Naveed M. Khan

2. INTRODUCTION
 In 1992, Robert S. Kaplan and David Norton
introduced the balanced scorecard, a concept for
measuring a company's activities in terms of its vision
and strategies, to give managers a comprehensive
view of the performance of a business

3. Key Element
 The key new element is focusing not only on financial
outcomes but also on the human issues that drive
those outcomes, so that organizations focus on the
future and act in their long-term best interest

4. BALANCE SCORE CARD

5. Financials
 According to each perspective of the balanced
scorecard there are a number of KPIs.
 * Financial
 o Cash flow
 o ROI
 o Financial Result
 o Return on capital employed
 o Return on equity


6. Customer
 * Customer
 Delivery Performance to Customer - by Date
 Delivery Performance to Customer - by
Quantity
 Customer satisfaction rate
 Customer retention

7. Internal Business Processes
 Number of Activities
 Supply Chain Management
 Operational Efficiency

8. Learning & Growth
 Investment on Employee’s Training
 Growth within the company
 Research and Innovation

9. Cause and Effect Relationship

10. Cause and Effect Relationship

11. Performance Drivers
 A good balance score card also have a mix of
outcome measures and performance drivers
 Companies with greatly improved performances must
identify how to increase sales to existing customers
 Example of TCP
 The four perspective should be considered template
not a straight jacket

12. Balanced Score Card of TESCO

13. Customer
 Earn lifetime loyalty
 The aisles are clear
 I can get what I want
 The prices are good
 I don’t want to queue
 The staff are great

14. Finance
 Grow sales
 Maximize profits
 Manage our investment

15. Operations
 Shopping is better for customers
 Work is simpler for staff
 The way we operate is cheaper for Tesco
 The way we operate is responsible and safe

16. People/ Learning & Growth
 We trust and respect each other
 My manager supports me to do a good job
 My job is interesting I have the opportunity to