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Balanced Scorecard
Balanced Scorecard
Balanced Scorecard
Balanced Scorecard
Balanced Scorecard
Balanced Scorecard
Balanced Scorecard
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Balanced Scorecard

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  • Successful use of color to create clarity. Thanks!
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  • This is one of the best readings on balanced scorecards. The illustrations are fantastic. I published recently somewhere else two presentations entitled. 'The Cost of Poor Vision on Companies' and 'Balancing the Balanced Scorecard'. I slightly disagree with this presentation (and most of others as well) that without alignment and a shared goal it would be possible to apply the balanced scorecard. Vision and positive culture are prerequisites to implementing the balanced scorecard. I plan to publish an elaborated presentation on this site (slideshare) on this subject.
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  • very informative posting
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  • 1. FINANCIAL PERSPECTIVE CUSTOMER PERSPECTIVE INTERNAL PERSPECTIVE LEARNING & GROWTH PERSPECTIVE Long-Term Shareholder Value ROCE > 15% Productivity Strategy Revenue Growth Strategy Improve Cost Structure Increase Asset Utilization Expand Revenue Opportunities Enhance Customer Value Operating Cost & Efficiency Capacity Utilization Capability Utilization Brand / Image OFFER PRODUCTS & SERVCIES THAT ARE CONSISTENT, TIMELY and LOW-COST Low-Cost Manufacturing World-Class Quality Standards World-Class Delivery Timing Knowledgeable & Skilled Partner High Customer Satisfaction > 90% Reinforce Brand Image What do Shareholders’ Expect? Who are the Customers? What do they Value? What must We Do Internally to Deliver Value to Customers? What must We Do to Enhance Our People? SATISFIED SHAREHOLDERS DELIGHTED CUSTOMERS EFFICIENT& EFFECTIVE PROCESSES MOTIVATED & PREPARED WORKFORCE Product/Service Attributes Relationship Image OPERATIONAL EXCELLENCE BUSINESS UNITS ALLIANCES INNOVATION PROCESSES SOCIALLY RESPONSIBLE HUMAN CAPITAL INFORMATION CAPITAL ORGANIZATION CAPITAL OVERALL STRATEGY MAP <ul><li>Improve Supply Chain </li></ul><ul><li>Planning & Delivery </li></ul><ul><li>Produce Products & </li></ul><ul><li>Services </li></ul><ul><li>Continuously Improve </li></ul><ul><li>Key Processes </li></ul><ul><li>Manage Risks </li></ul><ul><li>Create Value-Added </li></ul><ul><li>Partnerships </li></ul><ul><li>Improve Order </li></ul><ul><li>Fulfillment </li></ul><ul><li>Customer Satisfaction </li></ul><ul><li>Improve the Brand </li></ul><ul><li>Continuous </li></ul><ul><li>Improvement </li></ul><ul><li>(KAIZEN, ICC) </li></ul><ul><li>Automation/Robotics </li></ul><ul><li>Manage NPI </li></ul><ul><li>Benchmarking / </li></ul><ul><li>Best Practice </li></ul><ul><li>Safety & Health </li></ul><ul><li>Employee </li></ul><ul><li>Satisfaction </li></ul><ul><li>Environment </li></ul><ul><li>Contribute to </li></ul><ul><li>Community </li></ul><ul><li>Develop Employees based upon </li></ul><ul><li>Strategic Competencies (Skills, </li></ul><ul><li>Training, Knowledge & Values): </li></ul><ul><li>TQM,Process Improvement, </li></ul><ul><li>Engineering & Simulation. </li></ul><ul><li>Integrate IT in All Business </li></ul><ul><li>Processes (Systems,Databases </li></ul><ul><li>Network): </li></ul><ul><li> Planning, Monitoring, Reporting </li></ul><ul><li> Operation & Financial </li></ul><ul><li>Facilitate Knowledge Sharing & </li></ul><ul><li>Replicating Best Practices </li></ul><ul><li>(Culture of Change, Leadership, </li></ul><ul><li>Alignment and Teamwork): </li></ul><ul><li> IT & Technology-Enabled </li></ul>
  • 2. OPERATIONS MANAGEMENT STRATEGY MAP FINANCIAL PERSPECTIVE CUSTOMER PERSPECTIVE INTERNAL PERSPECTIVE LEARNING & GROWTH PERSPECTIVE Long-Term Shareholder Value ROCE > 15% Productivity Strategy Revenue Growth Strategy Improve Cost Structure Increase Asset Utilization Expand Revenue Opportunities Enhance Customer Value Operating Cost & Efficiency Capacity Utilization Capability Utilization Brand / Image OFFER PRODUCTS & SERVCIES THAT ARE CONSISTENT, TIMELY and LOW-COST Low-Cost Manufacturing World-Class Quality Standards World-Class Delivery Timing Knowledgeable & Skilled Partner High Customer Satisfaction > 90% Reinforce Brand Image SATISFIED SHAREHOLDERS DELIGHTED CUSTOMERS EFFICIENT& EFFECTIVE PROCESSES MOTIVATED & PREPARED WORKFORCE Product/Service Attributes Relationship Image Improve Supply Chain Planning & Delivery Produce Products & Services Continuously Improve Key Processes Manage Risks HUMAN CAPITAL INFORMATION CAPITAL ORGANIZATION CAPITAL <ul><li>JIT with 3PL </li></ul><ul><li>High Quality Supply </li></ul><ul><li>Supplier Partnerships </li></ul><ul><li>Outsource mature & </li></ul><ul><li>non-strategic services </li></ul><ul><li>New ideas from </li></ul><ul><li>suppliers </li></ul><ul><li>Lower Cost of Production </li></ul><ul><li>Process Cycle Time </li></ul><ul><li>Enhance Quality </li></ul><ul><li>Fixed Asset Utilization </li></ul><ul><li>Working Capital </li></ul><ul><li>Efficiency </li></ul><ul><li>Production Planning & </li></ul><ul><li>Control </li></ul><ul><li>Line Balancing </li></ul><ul><li>Quality Assurance </li></ul><ul><li>Maintenance </li></ul><ul><li>Robots / Automation </li></ul><ul><li>Financial Risks </li></ul><ul><li>Operational Risks </li></ul><ul><li>Technological Risks </li></ul>Skills in Quality Management / Process Improvement Technology that Facilitates Quality & Process Improvement Culture for Continuous Improvement OPERATIONAL EXCELLENCE
  • 3. CUSTOMER MANAGEMENT STRATEGY MAP FINANCIAL PERSPECTIVE CUSTOMER PERSPECTIVE INTERNAL PERSPECTIVE LEARNING & GROWTH PERSPECTIVE Long-Term Shareholder Value ROCE > 15% Productivity Strategy Revenue Growth Strategy Improve Cost Structure Increase Asset Utilization Expand Revenue Opportunities Enhance Customer Value Operating Cost & Efficiency Capacity Utilization Capability Utilization Brand / Image OFFER PRODUCTS & SERVCIES THAT ARE CONSISTENT, TIMELY and LOW-COST Low-Cost Manufacturing World-Class Quality Standards World-Class Delivery Timing Knowledgeable & Skilled Partner High Customer Satisfaction > 90% Reinforce Brand Image SATISFIED SHAREHOLDERS DELIGHTED CUSTOMERS EFFICIENT& EFFECTIVE PROCESSES MOTIVATED & PREPARED WORKFORCE Product/Service Attributes Relationship Image Create Value-added Partnerships Improve Order Fulfillment Customer Satisfaction Improve the Brand HUMAN CAPITAL INFORMATION CAPITAL ORGANIZATION CAPITAL <ul><li>‘ Sole-source” </li></ul><ul><li>Partnership </li></ul><ul><li>High Quality – Low Cost </li></ul><ul><li>Optimize ‘common” </li></ul><ul><li>activities / initiatives </li></ul><ul><li>Integrated Management </li></ul><ul><li>System / Information </li></ul><ul><li>Timely and Accurate </li></ul><ul><li>Production Plan and </li></ul><ul><li>Execution </li></ul><ul><li>Transparent Process </li></ul><ul><li>Information </li></ul><ul><li>Problem Resolution </li></ul><ul><li>Service Excellence </li></ul><ul><li>Timely Delivery </li></ul><ul><li>Problem Tracking </li></ul><ul><li>Low Warranty Issues </li></ul><ul><li>“ Living” the “Daring to </li></ul><ul><li>Dare” Motto </li></ul><ul><li>Consistent High Build </li></ul><ul><li>Quality </li></ul><ul><li>Market / Customer </li></ul><ul><li>Focused Culture </li></ul>Customer Management Skills Enabling Systems and Tools Driven by Core Values and Operating Beliefs BUSINESS UNITS ALLIANCES
  • 4. INNOVATION MANAGEMENT STRATEGY MAP FINANCIAL PERSPECTIVE CUSTOMER PERSPECTIVE INTERNAL PERSPECTIVE LEARNING & GROWTH PERSPECTIVE Long-Term Shareholder Value ROCE > 15% Productivity Strategy Revenue Growth Strategy Improve Cost Structure Increase Asset Utilization Expand Revenue Opportunities Enhance Customer Value Operating Cost & Efficiency Capacity Utilization Capability Utilization Brand / Image OFFER PRODUCTS & SERVCIES THAT ARE CONSISTENT, TIMELY and LOW-COST Low-Cost Manufacturing World-Class Quality Standards World-Class Delivery Timing Knowledgeable & Skilled Partner High Customer Satisfaction > 90% Reinforce Brand Image SATISFIED SHAREHOLDERS DELIGHTED CUSTOMERS EFFICIENT& EFFECTIVE PROCESSES MOTIVATED & PREPARED WORKFORCE Product/Service Attributes Relationship Image Continuous Improvement Automation / Robotics Manage NPI Benchmarking / Best Practice HUMAN CAPITAL INFORMATION CAPITAL ORGANIZATION CAPITAL <ul><li>Execute / Implement </li></ul><ul><li>ICC, “Kaizen’ </li></ul><ul><li>Anticipate Customer </li></ul><ul><li>Needs </li></ul><ul><li>Discover New </li></ul><ul><li>Opportunities </li></ul><ul><li>Timely and Accurate </li></ul><ul><li>Production Plan and </li></ul><ul><li>Execution </li></ul><ul><li>Transparent Process </li></ul><ul><li>Information </li></ul><ul><li>Problem Resolution </li></ul><ul><li>Service Excellence </li></ul><ul><li>Timely Delivery </li></ul><ul><li>Problem Tracking </li></ul><ul><li>Low Warranty Issues </li></ul><ul><li>“ Living” the “Daring to </li></ul><ul><li>Dare” Motto </li></ul><ul><li>Consistent High Build </li></ul><ul><li>Quality </li></ul><ul><li>Market / Customer </li></ul><ul><li>Focused Culture </li></ul>Multi Disciplinary Skills Technology to Explore, Integrate, and Speed to Market A Culture of Creativity And Innovation INNOVATION PROCESSES
  • 5. SOCIAL RESPONSIBILITY MANAGEMENT STRATEGY MAP FINANCIAL PERSPECTIVE CUSTOMER PERSPECTIVE INTERNAL PERSPECTIVE LEARNING & GROWTH PERSPECTIVE Long-Term Shareholder Value ROCE > 15% Productivity Strategy Revenue Growth Strategy Improve Cost Structure Increase Asset Utilization Expand Revenue Opportunities Enhance Customer Value Operating Cost & Efficiency Capacity Utilization Capability Utilization Brand / Image OFFER PRODUCTS & SERVCIES THAT ARE CONSISTENT, TIMELY and LOW-COST Low-Cost Manufacturing World-Class Quality Standards World-Class Delivery Timing Knowledgeable & Skilled Partner High Customer Satisfaction > 90% Reinforce Brand Image SATISFIED SHAREHOLDERS DELIGHTED CUSTOMERS EFFICIENT& EFFECTIVE PROCESSES MOTIVATED & PREPARED WORKFORCE Product/Service Attributes Relationship Image Safety & Health Employee Satisfaction Environment HUMAN CAPITAL INFORMATION CAPITAL ORGANIZATION CAPITAL <ul><li>Workplace Safety </li></ul><ul><li>Commuting Safety </li></ul><ul><li>Legal & Regulations </li></ul><ul><li>Compliance </li></ul><ul><li>Diversity – Multi-Skilling </li></ul><ul><li>Job Enrichment </li></ul><ul><li>Empowerment </li></ul><ul><li>Energy & Resource </li></ul><ul><li>Consumption </li></ul><ul><li>Emissions </li></ul><ul><li>Waste Treatment </li></ul><ul><li>& Disposal </li></ul><ul><li>Product & Process </li></ul><ul><li>Environmental Impact </li></ul>Invest in Human Capital Growth Clean Technologies A Culture of Social Awareness And Responsibility SOCIAL RESPONSIBILITY Contribute to Community <ul><li>Community Programs </li></ul><ul><li>Alliances with Non- </li></ul><ul><li>Profit Organizations </li></ul>
  • 6. ALIGNING INTANGIBLE ASSETS to ENTERPRISE STRATEGY Long-Term Shareholder Value ROCE > 15% SATISFIED SHAREHOLDERS DELIGHTED CUSTOMERS EFFICIENT& EFFECTIVE PROCESSES MOTIVATED & PREPARED WORKFORCE STRATEGIC PROCESSES OPERATIONAL EXCELLENCE <ul><li>Provide Flexible </li></ul><ul><li>Planning </li></ul><ul><li>Effective/Efficient </li></ul><ul><li>Processes </li></ul><ul><li>Minimize Downtime </li></ul>Ensure High Quality BUSINESS UNITS ALLIANCES PROCESES INNOVATION SOCIALLY RESPONSIBLE STRATEGIC JOB FAMILIES Industrial/ Manufacturing Engineer. Quality Engineer Process/ Manufacturing Engineer Quality Engineer COMPETENCY PROFILE <ul><li>TQM </li></ul><ul><li>SE/CE </li></ul><ul><li>LOGISTIC/ALC </li></ul><ul><li>D&E </li></ul><ul><li>Simulation/Test </li></ul><ul><li>Trouble Shooting </li></ul><ul><li>Problem Solving </li></ul><ul><li>6  </li></ul><ul><li>TQM </li></ul><ul><li>D&E </li></ul><ul><li>Problem </li></ul><ul><li>Solving </li></ul><ul><li>TQM </li></ul><ul><li>SE/CE </li></ul><ul><li>LOGISTIC/ALC </li></ul><ul><li>D&E </li></ul><ul><li>Simulation/Test </li></ul><ul><li>Trouble Shooting </li></ul><ul><li>Problem Solving </li></ul><ul><li>6  </li></ul><ul><li>TQM </li></ul><ul><li>D&E </li></ul><ul><li>Problem </li></ul><ul><li>Solving </li></ul><ul><li>Provide Value- </li></ul><ul><li>Add </li></ul><ul><li>Ensure Timely </li></ul><ul><li>Delivery </li></ul><ul><li>Customer </li></ul><ul><li>Satisfaction </li></ul><ul><li>Ensure Brand </li></ul><ul><li>Value </li></ul><ul><li>Continuous </li></ul><ul><li>Improvement </li></ul><ul><li>Automation / </li></ul><ul><li>Robotics </li></ul><ul><li>NPI </li></ul><ul><li>Bench- </li></ul><ul><li>marking </li></ul><ul><li>Costing </li></ul>Industrial/Process/ Manufacturing Engineer. Process Engineer / Financial Planner Industrial/Process/ Manufacturing Engineer. HR Engineer <ul><li>TQM </li></ul><ul><li>SE/CE </li></ul><ul><li>LOGISTIC/ALC </li></ul><ul><li>D&E </li></ul><ul><li>Simulation/Test </li></ul><ul><li>Trouble Shooting </li></ul><ul><li>Problem Solving </li></ul><ul><li>TQM </li></ul><ul><li>Finance </li></ul><ul><li>TQM </li></ul><ul><li>SE/CE </li></ul><ul><li>LOGISTIC/ALC </li></ul><ul><li>D&E </li></ul><ul><li>Simulation/Test </li></ul><ul><li>Trouble Shooting </li></ul><ul><li>Problem Solving </li></ul><ul><li>6  </li></ul><ul><li>TQM </li></ul><ul><li>D&E </li></ul><ul><li>Communi- </li></ul><ul><li>cation </li></ul><ul><li>Safety & Health </li></ul><ul><li>Environment </li></ul><ul><li>Employee </li></ul><ul><li>Satisfaction </li></ul><ul><li>Contribute to </li></ul><ul><li>Community </li></ul>STRATEGIC JOB READINESS HUMAN CAPITAL INFORMATION CAPITAL ORGANIZATION CAPITAL <ul><li>Strategic Job Readiness </li></ul><ul><li>Information Portfolio Readiness </li></ul><ul><li>Leadership Gap </li></ul><ul><li>Core Values Achievement </li></ul><ul><li>Best Practice Sharing </li></ul>
  • 7. NAM – BALANCED SCORECARD STRATEGY MAP BALANCED SCORECARD MEASUREMENT PROCESS: MANUFACTURING EXCELLENCE THEME: ROCE > xx%, VOLUME = xx,xxx units OBJECTIVES TARGET ACTION PLAN INITIATIVE BUDGET FINANCIAL PERSPECTIVE Improve Productivity OFFER PRODUCTS & SERVCIES THAT ARE CONSISTENT, TIMELY and LOW-COST Long-Term Shareholder Value ROCE > xx% Grow Revenue CUSTOMER PERSPECTIVE <ul><li>Operating Cost & Efficiency </li></ul><ul><li>Capacity Utilization </li></ul><ul><li>Capability Utilization </li></ul><ul><li>Brand / Image </li></ul><ul><li>Cost/Unit, Efficiency </li></ul><ul><li>% Utilization </li></ul><ul><li>Monthly Monitoring </li></ul><ul><li>Weekly/Monthly </li></ul><ul><li>Monitoring </li></ul><ul><li>Monthly Monitoring </li></ul><ul><li>Weekly/Monthly </li></ul><ul><li>Monitoring </li></ul><ul><li>Low Cost Manufacturing </li></ul><ul><li>World-Class Quality </li></ul><ul><li>Standards </li></ul><ul><li>World-Class Delivery Timing </li></ul><ul><li>Knowledgeable & Skilled </li></ul><ul><li>Partner </li></ul><ul><li>High Customer Satisfaction </li></ul><ul><li>Reinforce Brand Image </li></ul><ul><li>Man-hour per Unit </li></ul><ul><li>Defect per Unit </li></ul><ul><li>Sales Delivery </li></ul><ul><li>Direct Pass Rate </li></ul><ul><li>Market Feedback </li></ul><ul><li>Sales Volume </li></ul><ul><li>Weekly Monitoring </li></ul><ul><li>Daily Monitoring </li></ul><ul><li>Daily Monitoring </li></ul><ul><li>Daily Monitoring </li></ul><ul><li>Weekly Monitoring </li></ul><ul><li>Monthly Monitoring </li></ul><ul><li>Prod. & Sales Mtg. </li></ul>Low Cost World Class ENSURE OPERATIONAL EXCELLENCE WITH INNOVATION AS WELL BEING SOCIALLY RESPONSIBLE INTERNAL PERSPECTIVE Customer Satisfaction Enhance Brand Operational Excellence Process Innovation Alliances with SBUs Socially Responsible <ul><li>Productivity </li></ul><ul><li>Delivery </li></ul><ul><li>Continuous Improvement </li></ul><ul><li>NPI </li></ul><ul><li>Safety & Health </li></ul><ul><li>Environment </li></ul><ul><li>Cycle Time </li></ul><ul><li>Meet Daily Plan </li></ul><ul><li>WIP </li></ul><ul><li>KAIZEN </li></ul><ul><li>ICC </li></ul><ul><li>Timely Introduction </li></ul><ul><li>Industrial Accident </li></ul><ul><li>Commuting Accident </li></ul><ul><li>Toxic Waste Disposal </li></ul><ul><li>ISO 9002 </li></ul><ul><li>Hourly Monitoring </li></ul><ul><li>Daily Monitoring </li></ul><ul><li>Daily Monitoring </li></ul><ul><li>Monthly follow-up </li></ul><ul><li>Specific Programme </li></ul><ul><li>Weekly Follow-up </li></ul><ul><li>Cross Audits </li></ul><ul><li>Defensive Driving </li></ul><ul><li>Facility Readiness </li></ul><ul><li>Certification </li></ul>STRATEGIC JOB & SYSTEMS LEARNING & GROWTH PERSPECTIVE Skills Info. System <ul><li>Develop the Necessary Skills </li></ul><ul><li>Information Systems </li></ul><ul><li>Availability </li></ul><ul><li>Strategic Awareness </li></ul><ul><li>R&D & Development </li></ul><ul><li>ALC, Procurement, </li></ul><ul><li>Financial </li></ul><ul><li>Alignment </li></ul><ul><li>Training and Skill </li></ul><ul><li>Build-up </li></ul><ul><li>Set-up, Test and </li></ul><ul><li>Validation </li></ul><ul><li>Communication </li></ul><ul><li>Programme </li></ul><ul><li>Trial Prod. </li></ul><ul><li>Spare Parts Prod </li></ul><ul><li>Warranty Cost </li></ul>t OPEX RM XX M CAPEX RM xx M

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