Balance Scorecard By Priyanka Rai
<ul><li>PERFORMANCE MEASUREMENT SYSTEM </li></ul><ul><li>FINANCIAL MEASURES </li></ul><ul><li>Cash flow statement </li></u...
PRESPECTIVES Financial Perspective Internal Service Process Perspective Customer Relations Perspective Learning, Innovatio...
BSC <ul><li>The BSC is a conceptual framework for  </li></ul><ul><li>translating an organization's vision into a  </li></u...
FEATURES OF BSC
1.It is used as a strategic management system: <ul><li>Desired state </li></ul><ul><li>Differentiating activities </li></u...
2.It covers 4 important perspective: <ul><li>Perspectives  </li></ul><ul><li>Financial  </li></ul><ul><li>Customer </li></...
MEASURES <ul><li>A measurement tool, which is used as a  </li></ul><ul><li>guide to monitor, assess and improve the  </li>...
FINANCIAL PRESPECTIVES <ul><li>GOAL </li></ul><ul><li>Survive </li></ul><ul><li>Succeed  </li></ul><ul><li>Prosper  </li><...
CUSTOMER PRESPECTIVE <ul><li>GOAL </li></ul><ul><li>New products </li></ul><ul><li>Responsive supply </li></ul><ul><li>Pre...
INTERNAL BUSINESS PERSPECTIVE <ul><li>GOAL </li></ul><ul><li>Technology capability </li></ul><ul><li>Manufacturing excelle...
INNOVATION AND LEARNING <ul><li>GOAL </li></ul><ul><li>Technological leadership </li></ul><ul><li>Manufacturing learning <...
ROCE Customer Loyalty On time Delivery Process Quality Process Cycle Time Employee Skills Financial Customer Internal/ Bus...
ADVANTAGES <ul><li>Focuses on measures that are critical. </li></ul><ul><li>Presented in simple management report. </li></...
PITFALLS <ul><li>Establishing reliable cause effect relationship is very difficult. </li></ul><ul><li>Managers are accusto...
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Balance scorecard

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Balance scorecard

  1. 1. Balance Scorecard By Priyanka Rai
  2. 2. <ul><li>PERFORMANCE MEASUREMENT SYSTEM </li></ul><ul><li>FINANCIAL MEASURES </li></ul><ul><li>Cash flow statement </li></ul><ul><li>ROE </li></ul><ul><li>Quarterly Sales Report </li></ul><ul><li>Financial Statement </li></ul><ul><li>NON-FINANCIAL MEASURES </li></ul><ul><li>Absenteeism </li></ul><ul><li>Turn Over Rate </li></ul><ul><li>Staff Education </li></ul><ul><li>Customer satisfaction </li></ul><ul><li>On time delivery </li></ul><ul><li>Cycle Time </li></ul>
  3. 3. PRESPECTIVES Financial Perspective Internal Service Process Perspective Customer Relations Perspective Learning, Innovation, and Growth <ul><li>Monthly budget variance </li></ul><ul><li>Replacement cost (loss rate) </li></ul><ul><li>Repair & Maintenance costs </li></ul><ul><li>Turn Around time </li></ul><ul><li>Laboratory Occurrences- specimen </li></ul><ul><li>processing, safety </li></ul><ul><li>Repeat tests </li></ul><ul><li>Workload units </li></ul><ul><li>System/Equipment downtime </li></ul><ul><li>Customer satisfaction </li></ul><ul><li>Customer wait times </li></ul><ul><li>Laboratory Occurrences- </li></ul><ul><li>corrected reports </li></ul><ul><li>Turnover rate (% of staff in 6 months) </li></ul><ul><li>Absenteeism rate (% of staff in 3 months) </li></ul><ul><li>Attendance at in-services (% attending) </li></ul><ul><li>Staff education (% of budget devoted) </li></ul>
  4. 4. BSC <ul><li>The BSC is a conceptual framework for </li></ul><ul><li>translating an organization's vision into a </li></ul><ul><li>set of performance indicators/measures </li></ul><ul><li>distributed among four perspectives: </li></ul><ul><li>Financial, Customer, Internal Business </li></ul><ul><li>Processes, and Learning and Growth. </li></ul>
  5. 5. FEATURES OF BSC
  6. 6. 1.It is used as a strategic management system: <ul><li>Desired state </li></ul><ul><li>Differentiating activities </li></ul><ul><li>What must be done </li></ul><ul><li>well to implement </li></ul><ul><li>strategies </li></ul><ul><li>How strategic </li></ul><ul><li>success is </li></ul><ul><li>measured </li></ul>Mission Vision Strategy/Goals Objectives In each perspective Measures In each perspective
  7. 7. 2.It covers 4 important perspective: <ul><li>Perspectives </li></ul><ul><li>Financial </li></ul><ul><li>Customer </li></ul><ul><li>Internal Business </li></ul><ul><li>Innovation and </li></ul><ul><li>Learning </li></ul><ul><li>Key Issues </li></ul><ul><li>Is the company attractive </li></ul><ul><li>to shareholders? </li></ul><ul><li>Does the co. provide value </li></ul><ul><li>to customer? </li></ul><ul><li>What must co. excel at? </li></ul><ul><li>Is the co. improving and </li></ul><ul><li>innovating continually. </li></ul>
  8. 8. MEASURES <ul><li>A measurement tool, which is used as a </li></ul><ul><li>guide to monitor, assess and improve the </li></ul><ul><li>quality of 4 perspectives. </li></ul>
  9. 9. FINANCIAL PRESPECTIVES <ul><li>GOAL </li></ul><ul><li>Survive </li></ul><ul><li>Succeed </li></ul><ul><li>Prosper </li></ul><ul><li>MEASURES </li></ul><ul><li>Cash flow </li></ul><ul><li>Quarterly sales growth and operating income by division. </li></ul><ul><li>Increased market share and ROE </li></ul>
  10. 10. CUSTOMER PRESPECTIVE <ul><li>GOAL </li></ul><ul><li>New products </li></ul><ul><li>Responsive supply </li></ul><ul><li>Preferred suppliers </li></ul><ul><li>Customer satisfaction </li></ul><ul><li>MEASURES </li></ul><ul><li>% of sales from new products </li></ul><ul><li>%of sales from proprietary products </li></ul><ul><li>On time delivery </li></ul><ul><li>Share of key accounts purchases </li></ul><ul><li>Ranking by key accounts </li></ul><ul><li>New product development </li></ul><ul><li>After sales services </li></ul>
  11. 11. INTERNAL BUSINESS PERSPECTIVE <ul><li>GOAL </li></ul><ul><li>Technology capability </li></ul><ul><li>Manufacturing excellence </li></ul><ul><li>Design productivity </li></ul><ul><li>New product introduction. </li></ul><ul><li>MEASURES </li></ul><ul><li>Manufacturing geometry vs. competition. </li></ul><ul><li>Cycle time/unit cost yield. </li></ul><ul><li>Engineering efficiency </li></ul><ul><li>Actual introduction schedule vs. plan </li></ul>
  12. 12. INNOVATION AND LEARNING <ul><li>GOAL </li></ul><ul><li>Technological leadership </li></ul><ul><li>Manufacturing learning </li></ul><ul><li>Product focus </li></ul><ul><li>Time to market </li></ul><ul><li>MEASURES </li></ul><ul><li>Time to develop next generation. </li></ul><ul><li>Process time to maturity. </li></ul><ul><li>% of products that equals 80% sales. </li></ul><ul><li>New product introduction. </li></ul>
  13. 13. ROCE Customer Loyalty On time Delivery Process Quality Process Cycle Time Employee Skills Financial Customer Internal/ Business Process Learning and Growth 3.It represent linked series of objectives and measures:
  14. 14. ADVANTAGES <ul><li>Focuses on measures that are critical. </li></ul><ul><li>Presented in simple management report. </li></ul><ul><li>Guards company against sub-optimization. </li></ul>
  15. 15. PITFALLS <ul><li>Establishing reliable cause effect relationship is very difficult. </li></ul><ul><li>Managers are accustomed with the financial result. </li></ul><ul><li>Measurement overload for managers. </li></ul><ul><li>It is difficult to establish weight to every measure. </li></ul>

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