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The balanced scorecard and value chain
 

The balanced scorecard and value chain

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This presentation takes you through the theory and setting up a Balanced Scorecard for your organisation. This presentation also discusses the linkages between the Balanced Scorecard and the value ...

This presentation takes you through the theory and setting up a Balanced Scorecard for your organisation. This presentation also discusses the linkages between the Balanced Scorecard and the value chain (Optimise-GB, creating operational efficiencies)

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  • Full Name Full Name Comment goes here.
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  • good presentation. could you pl send me a copy to premchand55@gmail.com
    regards
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  • Simon,

    Would it be possible to send me a copy of this presentation which will be used as a class lecture in Operations Management. Thank you

    Gary Steinberg
    gary.steinberg@gmail.com
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  • Very good presentation. Can I download a copy of it ? I'd like to discuss it internally to my company.
    Thanks
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  • Congratulations !!!!!! Thank you for all presentations very interesting presentations that I reference in some of our groups
    - HUMAN RESOURCES, WELL BEING, PERSONAL DEVELOPMENT - http://www.slideshare.net/group/human-resources-well-being-personal-development
    - BANK OF KNOWLEDGE - http://www.slideshare.net/group/bank-of-knowledge
    - BUSINESS AND MANAGEMENT : http://www.slideshare.net/group/business-and-management
    NB: I am writing an identical message to each document
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    The balanced scorecard and value chain The balanced scorecard and value chain Presentation Transcript

    • The Balanced Scorecard and the Value Chain “ All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved.” – Sun Tzu Optimise- GB
    • The Balanced scorecard is a set of measures that gives managers a comprehensive view of the business. The balanced scorecard has advantages of pure financial measures such as ROI, EPS, PE etc as they are often misleading as they do not give a full picture of a given situation nor do they link one measure to another Optimise -GB
      • What is the business mission statement?
      • Who are your customers? What is your products / Services?
      • What is the state of your business right now in terms of sales, cost, quality, customer satisfaction, market share?
      • What are your strengths, weaknesses, opportunities and threats?
      • Where do you want the business to be in the future?
      Before we continue ask yourself the following questions: Optimise -GB
    • Implementation of the Balanced Scorecard
      • Communicate the purpose and objective of the Balanced Scorecard from the Exec level to the shop floor
      • Translate the strategic KPI’s to management and shop floor KPI’s (build into appraisals)
      • Build a programme of projects that aim to meet the set targets, identify prioritisation
      Optimise- GB
    • Implementation of the Balanced Scorecard Executive Team Managers Staff Communicate from the top down Engage staff at all levels to gain acceptance and ownership Link targets together to Communicate benefits, create incentives for its use Set meaningful, customer focused targets Optimise- GB
    • The four perspectives of the Balanced Scorecard What are your goals, measurements for each of the four quadrants… Optimise- GB
    • The four perspectives of the Balanced Scorecard (Examples) Optimise- GB
    • The four perspectives of the Balanced Scorecard (Examples) Optimise- GB
    • The four perspectives of the Balanced Scorecard
      • How do your customers see you? How do you know?
      • Time factors : What is the lead time of receiving an order to delivering the goods to your customers?
      • Quality factors: What is the % of errors, returns policy, what are the quality requirements from a customer perspective
      • Cost Factors: What is the cost of serving your customers and how much profit is made on each one? What are the opportunity costs of missing a customer order?
      • Market factors : What is the Share of the market, customer make up and profitability, repeat purchases, number of new customers?
      Optimise- GB Customer Perspective
    • The four perspectives of the Balanced Scorecard Optimise- GB Tool kits to understand the Customer Perspective Brain storming Process maps Focus Groups KANO Analysis Market research
    • The four perspectives of the Balanced Scorecard
      • How do your appear to your shareholders? How do you know?
      • Liquidity : Debtor days, Stock Turn, Creditor Days, Gearing ratios, Debt to equity, Interest cover
      • Profitability : Gross Margin %, Operating Profit %, Net Profit %, Return on Trading Assets (ROTA)
      • Investment : Return on investment (ROI), Earnings per share (EPS)
      • Sales : Market share, Sales increase %, revenue per customer
      Optimise- GB Financial perspective
    • The four perspectives of the Balanced Scorecard Optimise- GB Financial perspective
    • The four perspectives of the Balanced Scorecard
      • How good are your business processes? How do you know?
      • How are the business processes documented, measured and improved?
      • What is the volume of scrap, waste, defects, rework?
      • What are the competency / capability levels of your staff, technology, procurement strategies, Risk mitigation and quality assurance?
      • What is the quality of your products and services?
      Optimise- GB Internal business perspective
    • The four perspectives of the Balanced Scorecard How effective is your value chain? How good are your supporting activities? Optimise- GB Internal business perspective
    • The four perspectives of the Balanced Scorecard
      • Have the business processes been documented with the following in mind:
        • Time of each process
        • Waiting time between processes
        • Quality, rework and defects of each process
        • Cost of each process
      Optimise- GB Internal business perspective
    • The four perspectives of the Balanced Scorecard
      • Does you report on your procurement function:
      • Review supplier performance against requirements?
      • Issue tenders to suppliers to reduce costs?
      • Rationalise the supplier base to improve working relationships?
      • Identify ways of creating economies of scale to reduce transaction costs
      • Look to improve quality of service through outsourcing?
      Optimise- GB Internal business perspective
    • The four perspectives of the Balanced Scorecard Empowerment, involvement, accountability, training, encouragement, rewarding Human resource management Optimise- GB Internal business perspective
    • The four perspectives of the Balanced Scorecard
      • Is technology being used to:
      • Ease administration burdens
      • Speed up business processes
      • Improve quality of output
      • Automate labour intensive work
      • Integrating core systems to improve data flow
      • Linking with customer / suppliers systems to improve communication
      Optimise- GB Internal business perspective
    • The four perspectives of the Balanced Scorecard
      • How is your business improving through innovation? How do you know?
      • Do employees understand the vision of the company?
      • What is the morale of staff? No.’s for staff turnover and sickness?
      • How many ideas have been generated and acted upon as a group? Are employees involved in the process?
      • Have business risks been mitigated?
      • Is information to make decisions shared freely?
      Optimise- GB Innovation and learning
    • The four perspectives of the Balanced Scorecard Optimise- GB Management reviews Employee research Employee survey Tool kits to identify measurements for Innovation and learning Employee focus Groups Supplier / Customer engagement Utilise universities in solutions
    • Linking the four perspectives of the Balanced Scorecard (Example) Financial Customer Internal Business Processes Learning and growth Optimise- GB Employee Morale Employee suggestions Quality of work Customer satisfaction Accounts receivable Costs
    • Implementation of the Balanced Scorecard
      • Review actual results to those expected and understand the variances
      • Establish milestones review the Balanced Scorecard targets from Exec level to the Shop Floor
      Optimise- GB
    • Implementation of the Balanced Scorecard
      • Where are the reports displayed?
      • How often are they reviewed?
      • Are actions generated from the reviews?
      • Are reports focused and is someone accountable?
      • Have they been reviewed against the mission statement for goal congruence?
      Optimise- GB
        • For other solutions
        • Contact
        • Simon Misiewicz through
        • Web: www.optimise-gb.com
        • Email: [email_address] or
      Optimise- GB