57223451 balanced-scorecard-ppts-1


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57223451 balanced-scorecard-ppts-1

  1. 1. Balanced Scorecard
  2. 2. A new approach to strategic management wasdeveloped in the early 1990s by Drs. RobertKaplan (Harvard Business School) and DavidNorton. The balanced scorecard approach providesa clear prescription as to what companies shouldmeasure in order to balance the financialperspective.Balanced Scorecard is the Management Systemthat enables organisation to clarify their vision andstrategy and translate them into action.It providesfeedback on both internal process abd externaloutcomes in order to continously improve strategicperformance and results.
  3. 3. Kaplan and Norton describe Balanced Scorecard as:“ Balanced scorecard retains traditional financialmeasures. But financial measures tell the story of pastevents, an adequate story for industrial age companies forwhich investments in long-term capabilities and customerrelationships were not critical for success. These financialmeasures are inadequate, however, for guiding andevaluating the journey that information age companiesmust make to create future value through investment incustomers, suppliers, employees, processes, technology,and innovation.”
  4. 4. Financial Perspectives Customer Business ProcessPerspectives Vision and Perspectives Strategy Learning and Growth perspectives
  5. 5. Explanation of the 4 perspectivesFinancial Perspectives: •Revenue Growth, Profit • Cost Reduction • Productivity Improvement • Asset Utilization • Investments
  6. 6. Learning and Growth perspective• Learning and growth constitute the essential foundation for success of any knowledge-worker organization.• Employee training and corporate cultural attitude related to both individual and corporate self- improvement.• It includes things like mentor and tutors, within the organization as well as ease of communication among workers that allows them to readily get help on a problem when it is needed.• It includes technological tools “high performance work system”
  7. 7. Learning and growth PerspectiveImproving Capabilities for Delivering Values to Customer• People• System• Organization Procedure
  8. 8. Learning and growth PerspectiveCore Measurement Results Employee Employee Retention Productivity Employee SatisfactionEnablers Staff Technology Climate of Competencies Infrastructure Action
  9. 9. Business Process Perspective• There are 3 business process that can be identified: Strategic management process Mission-oriented process (special function of government offices and unique problems are encountered) Support-process (repetitive in nature and easier to measure and benchmark)
  10. 10. Business Process Perspective Critical internal process in which organization must deal. These processes enable to deliver the value propositions to customers and satisfy stake holders expectations.Innovation Process - Product Design - Product Development - Process Implementation• Operating Process - Manufacturing - Marketing
  11. 11. Customer Perspective• Due to increasing realization of customer focused and customer satisfaction in any organization therefore developing the metrics for satisfaction customers should be analyzed in terms of kind of customers and kind of processes for which we are providing a product or service to those customers groups. In today’s business scenario “Customer is the king”
  12. 12. Customer perspective• Customer Satisfaction• Customer Retention• New Customer Acquisition• Customer Profitability• Market Share• Measures of value Proposition to customer - Short Lead Time - On Time Delivery - Innovative Products - Anticipating Needs
  13. 13. Customer Perspective – Core Measure Market Share Customer Customer Customer Acquisition Profitability Retention Customer Satisfaction
  14. 14. Summary Financial RevenuePerspective CustomerCustomer LoyaltyPerspective On Time Delivery Internal Process Process Cycle Process Quality TimeLearning and Growth Employee Competitiveness