Crowdsourced Business
Presentation Design Service
Balanced Scorecard
Using the Balance Scorecard as a
Strategic Management...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 4
Contents
– Communicating and Linking
– Busi...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 7
Four management processes tie short-term ac...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 10
BSC measures the organization’s performanc...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 13
Translating the vision involves measuring ...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 16
Feedback and Learning allows the company f...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 19
This 26-month timeframe portrays how a com...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 22
An example of a Personal Scorecard—note ho...
PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 25
BSC Implementation 2-Year Timeline Templat...
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Balanced Scorecard

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This document explains the Balanced Scorecard (BSC) business framework and how to use it as a strategic management system. BSC is a strategy performance management tool--a semi-standard structured report, supported by proven design methods and automation tools, that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions.

This presentation includes instructional slides explaining the methodology, in addition to examples and slide templates. Topics covered include:

* Four Processes (Translating the Vision, Communicating and Linking, Business Planning, Feedback and Learning)
* Four Perspectives (Financial Measures, Customer Relationships, Internal Business Processes, Learning and Growth)
* Personal Scorecard
* Strategic Learning

This document is largely based on the HBR article, "Using the Balanced Scorecard as a Strategic Management System," authored by Kaplan and Norton. This article is on the list of "HBR's Must-Reads on Strategy."

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Balanced Scorecard

  1. 1. Crowdsourced Business Presentation Design Service Balanced Scorecard Using the Balance Scorecard as a Strategic Management System February 25, 2014 This document explains the Balanced Scorecard business framework and how to use it as a strategic management system. It includes instructional slides explaining the methodology, in addition to examples and slide templates. Topics include the Four Processes, Four Perspectives, Personal Scorecard, and Strategic Learning. ORIGINAL PROJECT DETAILS http://pptlab.com/ppt/HBR-Using-the-Balanced-Scorecard-as-a-Strategic-Management-System-19
  2. 2. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 4 Contents – Communicating and Linking – Business Planning – Translating the Vision – Feedback and Learning Examples and Templates Four Processes Overview This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/balanced-scorecard-134
  3. 3. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 7 Four management processes tie short-term activities to long-term objectives Overview – Four Processes Source: Using the Balanced Scorecard as a Strategic Management System, Kaplan and Norton (2005) The Balanced Scorecard relies on 4 key management processes to tie short-term activities with long-term objectives: Translating the Vision 1 Communicating and Linking 2 Business Planning 3 Feedback and Learning 4 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/balanced-scorecard-134
  4. 4. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 10 BSC measures the organization’s performance against 4 perspectives Overview – Four Perspectives The BSC approach evaluates and measures an organization’s performance across 4 perspectives—1 financial and 3 non-financial Financial Measures 1 Customer Relationships 2 Internal Business Processes 3 Learning and Growth 4 To success financially, how should we appear to our shareholders? To achieve our vision, how will we sustain our ability to change and improve? To achieve our vision, how should we appear to our customers? To satisfy our shareholders and customers, what processes must we excel at? This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/balanced-scorecard-134
  5. 5. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 13 Translating the vision involves measuring against 4 perspectives Translating the Vision – Four Perspectives Translating the Vision 1 Communication and Linking 2 Business Planning 3 Feedback and Learning 4 Translating the Vision InitiativesTargetsMeasuresObjectives FINANCIAL MEASURES “To success financially, how should we appear to our shareholders?” InitiativesTargetsMeasuresObjectives LEARNING AND GROWTH “To achieve our vision, how will we sustain our ability to change and improve?” InitiativesTargetsMeasuresObjectives INTERNAL BUSINESS PROCESSES “To satisfy our shareholders and customers, what business processes must we excel at?” InitiativesTargetsMeasuresObjectives CUSTOMER RELATIONSHIPS “To achieve our vision, how should we appear to our customers?” This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/balanced-scorecard-134
  6. 6. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 16 Feedback and Learning allows the company for strategic learning and double-loop learning Feedback and Learning Source: Using the Balanced Scorecard as a Strategic Management System, Kaplan and Norton (2005) Translating the Vision 1 Communication and Linking 2 Business Planning 3 Feedback and Learning 4 The fourth process gives organizations the capacity for strategic learning In addition to purely budgeted financial goals, a Balanced Scorecard at the center of a company’s management systems allows management to monitor short-term results from the three additional perspectives—1) customers, 2) internal business processes, and 3) learning and growth—and evaluate strategy under the light of recent performance In other words, the scorecard enables companies to modify their strategies to reflect real-time learning OVERVIEW EXAMPLES BSC allows a company for “double-loop learning” (learning that produces a change in people’s assumptions about cause-and-effect relationships). • A CEO of an engineering company said: “With the Balanced Scorecard, I can continually test my strategy. It’s like performing real-time research.” • Most companies today operate in a turbulent competitive environment with complex strategies that, though valid when launched, may lose their validity as market conditions change—the BSC framework gives management the ability to know at any point in its implementation whether the strategy they have formulated is, in fact, working and if not, why not • Budget reviews and financially based management tools do not allow this, as they address performance from only the financial perspective; also, they do not involve strategic learning This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/balanced-scorecard-134
  7. 7. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 19 This 26-month timeframe portrays how a company can adopt BSC as its strategic management system … Example – BSC Strategic Management Process (1 of 3) Source: Using the Balanced Scorecard as a Strategic Management System, Kaplan and Norton (2005) 121110987654321 MONTHS Clarify the vision. Ten members of a newly formed exec team work together for 3 months. A Balanced Scorecard is developed to translate a generic vision into a strategy that is understood and can be communicated. The process helps build consensus and commitment to the strategy. Communication to middle management. The top three layers of management (100 people) are brought together to learn about and discuss the new strategy. The Balanced Scorecard is the communication vehicle. Develop business unit scorecards. Using the corporate scorecard as a template, each business unit translates its strategy into its own scorecard. Eliminate non-strategic investments. The corporate scorecard, by clarifying strategic priorities, identifies many programs that are not contributing to the overarching strategy. Launch corporate change programs. The corporate scorecard identifies the need for cross-business change programs. They are launched while the business units prepare their scorecards. Review business unit scorecards. The CEO and the exec team review the individual business units’ scorecards. The review permits the CEO to participate knowledgeably in shaping business unit strategy. Refine the vision. The review of business unit scorecards identifies several cross-business issues not initially included in the corporate strategy. The corporate scorecard is updated. This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/balanced-scorecard-134
  8. 8. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 22 An example of a Personal Scorecard—note how it contains both financial and non-financial objectives Example – Personal Scorecard Achieve an internal rate of return 2% above the cost of capital Increase our earnings by an average or 20% per year Double our corporate value in 5 years CORPORATE OBJECTIVES 3. 4. 5. 2. 1. 5.TargetsTeam/Individual Measures Development costs per barrel85909395100 4.Production costs per barrel7073757810 Operating 3.Overhead and operating expenses72758085100 Net cash flow235230220420100 2.Earnings in ($ USD MM)220180160120100 Financial 1.2016201520142013201220162015201420132012 Team/Individual Objectives and Initiatives Business Unit TargetsScorecard MeasuresCorporate Targets Name: Location: This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/balanced-scorecard-134
  9. 9. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 25 BSC Implementation 2-Year Timeline Template 242322212019181716151413 Establish individual performance objectives. Update long-range plan and budget. Conduct monthly and quarterly reviews. Communicate the BSC to the company. This step is performed on a regular schedule. The BSC is now a routine part of the management process. Template – BSC Implementation Timeline (2 of 2) This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/balanced-scorecard-134
  10. 10. 1 Flevy (www.flevy.com) is the marketplace for premium documents. These documents can range from Business Frameworks to Financial Models to PowerPoint Templates. Flevy was founded under the principle that companies waste a lot of time and money recreating the same foundational business documents. Our vision is for Flevy to become a comprehensive knowledge base of business documents. All organizations, from startups to large enterprises, can use Flevy— whether it's to jumpstart projects, to find reference or comparison materials, or just to learn. Contact Us Please contact us with any questions you may have about our company. • General Inquiries support@flevy.com • Media/PR press@flevy.com • Billing billing@flevy.com

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