Your SlideShare is downloading. ×
0
Balanced Scorecard
Balanced Scorecard
Balanced Scorecard
Balanced Scorecard
Balanced Scorecard
Balanced Scorecard
Balanced Scorecard
Balanced Scorecard
Balanced Scorecard
Balanced Scorecard
Balanced Scorecard
Balanced Scorecard
Balanced Scorecard
Balanced Scorecard
Balanced Scorecard
Balanced Scorecard
Balanced Scorecard
Balanced Scorecard
Balanced Scorecard
Balanced Scorecard
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Balanced Scorecard

440

Published on

PowerPoint Presentation of Balanced Scorecard.

PowerPoint Presentation of Balanced Scorecard.

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
440
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
55
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Definition What is the Balanced Scorecard?  The scorecard emerged in response to organizations’ gap between short-term financial activities and long-term strategy.  It is not a replacement for budgeting but merely a complement in the sense allows businesses to set performance benchmarks in non-financial areas.  Performance standards are specifically applied to four perspectives: customer relations, finance, internal processes and learning and growth.  To ensure that both short-term and long-term goals are correlated, the scorecard relies on four processes: translating the vision, communicating and linking, business planning and feedback and learning.  provides stakeholders with a comprehensive measure of how the organization is progressing towards the achievement of its strategic goals.
  • 2. The Goal of Alignment Poor Organizational Alignment Vision & Goals Good Organizational Alignment Vision & Goals
  • 3. Objectives  To achieve strategic objectives.  To provide quality with fewer resources.  To eliminate non-value added efforts.  To align customer priorities and expectations with the customer.  To track progress.  To evaluate process changes.  To continually improve.  To increase accountability.
  • 4. Uses How is the Balanced Scorecard used?  Translating the vision: helping all employees understand how their day-to-day work contributes to long-term goals.  Communicating and linking: disseminating long-term goals both up and down an organizational hierarchy, ensuring that both departmental and individuals objectives are in alignment.  Business planning: taking long-term strategy and using it as the basis for how resources and capital are allocated.  Feedback and learning: the scorecard enables strategic and real-time learning because it measures daily performance and spending in the context of overarching goals, allowing organizations to make necessary changes.
  • 5. Framework  Measurement is the language that gives clarity to vague concepts.  Measurement is used to communicate, not to control.  Building the scorecard develops consensus and teamwork throughout the organization. "If we succeed, how will we look to our shareholders?” The Vision Financial Perspective "To achieve my vision, how must I look to my customers?” Customer Perspective "To satisfy my customer, at which processes must I excel?” Internal Perspective "To achieve my vision, how must my organization learn and improve?” Organization Learning
  • 6. Issues and Solutions The Balanced Scorecard addresses these issues: Problems 1. The Vision Barrier 2. The People Barrier Solutions 1. Translating the Vision o Identify strategic objectives, linkages, measures, targets and initiatives 2. Linking the Organization o Communicate and align with the strategy o Define individual contribution to the strategy o Link to performance management and compensation
  • 7. Issues and Solutions Continuation, Problems 3. The Operational Barrier 4. The Management Barrier Solutions 3. Aligning Resources with the Strategy o Prioritize strategic initiatives o Link planning and budgeting to the strategy 4. Feedback and Learning o Focus management meetings on strategic priorities o Provide measurement feedback o Test strategic hypotheses
  • 8. Strategic Performance Management System Strategic Direction Create Environment For Change Communicate Strategies Define Objectives Implement BSC Balanced Scorecard Measure Performance Improve Processes Evaluate and Adjust Continuous Improvement Redefine InitiativesLinking it all together…
  • 9. The Balance Scorecard LEARNING & GROWTH To achieve our goals, how must we learn, communicate and grow? INTERNAL To satisfy our customers and stakeholders, in which business processes must we excel? FINANCIAL/REGULATORY To satisfy our constituents, what financial & regulatory objectives must we accomplish? CUSTOMER To achieve our vision, what customer needs must we serve?
  • 10. Learning and Growth To achieve our goals and accomplish core activities, how must we learn, communicate and work together? Possible Performance Measures: o Employee Satisfaction o Retention and Turnover o Training Hours and Resources o Technology Investment
  • 11. Internal Perspective To satisfy our customers, in which business processes must we excel? Possible Performance Measures: o Cycle Time o Completion Rate o Workload and Employee Utilization o Transactions per employee o Errors or Rework
  • 12. Customer Perspective To achieve our vision, what customer needs must we serve? Possible Performance Measures: o Customer Satisfaction (Average) o Satisfaction Gap Analysis (Satisfaction vs. Level of Importance) o Satisfaction Distribution (% of each area scored)
  • 13. Financial / Regulatory Perspective To satisfy our constituents, what financial and regulatory objectives must we accomplish? Possible Performance Measures: o Cost / Unit o Unfunded Requirements or Projects o Cost of Service o Budget Projections and Targets
  • 14. Measurement Why Measure?  To determine how effectively and efficiently the process or service satisfies the customer.  To identify improvement opportunities.  To make decisions based on FACT and DATA Measurement Should:  Translate customer expectations into goals.  Evaluate the quality of processes.  Track our improvement.  Focus our efforts on our customers.  Support our strategies.
  • 15. Targets “If you don’t know where you’re going, you’re probably not gonna get there.” -- Forrest Gump  Targets need to be set for all measures  Should have a “solid basis”  Give personnel something for which to aim  If achieved will transform the organization  Careful not to develop measures/targets in a fragmented approach: i.e. Asking people to increase customer satisfaction has to be backed up with the knowledge, tools, and means to achieve that target.
  • 16. Responsibilities The Leadership Team:  Develops the division’s vision, strategy and goals  Develops organizational objectives and targets  Provides leadership, endorsement and vision for the project  Clears barriers to scorecard progress The Core Team:  Drafts the strategy map and scorecard  Works with employees to develop measures supporting strategic objectives  Works with the Leadership Team to plan and implement the Balanced Scorecard in the FAS Division
  • 17. Notes  The Balance Scorecard is a Feedback Tool  It is not a Strategy or Quality program  Think of it as a “Dashboard”  Should be done in addition to the other Quality Improvement Initiatives: o Six-Sigma o Lean o Design for Six-Sigma
  • 18. Strategy is about Choices There are several ways or strategies to cross the river o Build a boat o Build a raft o Build a helicopter o Build a bridge o Dig a tunnel Each can be successful in achieving the goal.
  • 19. Thank You!

×