Really Simple Balanced Scorecard

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Step-by-step presentation to understand, build and use a really simple balanced scorecard

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Really Simple Balanced Scorecard

  1. Really Simple Balanced Scorecard By Samurai
  2. Textbook examples of Balanced Scorecard are complex
  3.  
  4. Manager’s Toolbox example of Balanced Scorecard is simple
  5. 1 A4 to prepare 1 slide to communicate 1 A4 to execute
  6. Learning perspective Process perspective Customer perspective Financial perspective Acquiring knowledge Summarizing knowledge Customer satisfaction Profitable growth insert ¥€$ :-)
  7. Textbooks say “Ultimately all causal paths lead to financial measures.”
  8. Ultimately all causal paths lead to financial measures Financial perspective Customer perspective Process perspective Learning perspective
  9. That’s an uphill battle! Financial perspective Customer perspective Process perspective Learning perspective
  10. That’s an uphill battle! Financial perspective Customer perspective Process perspective Learning perspective Been there, done that!
  11. They stumbled on learning Financial perspective Customer perspective Process perspective Learning perspective With jeans, sneakers & ¥100 raincoats In really, really, really bad hail storm 1 hour to nearest shelter
  12. The fundamental questions Financial perspective Customer perspective Process perspective Learning perspective “ To achieve our vision, how will we sustain our ability to change and improve?” “ To satisfy our shareholders and customers, what business processes must we excel at?” “ To succeed financially, how should we appear to our shareholders?” “ To achieve our vision, how should we appear to our customers?”
  13. To achieve our vision, how will we sustain our ability to change and improve?
  14. Manager’s Toolbox turns the perspectives upside down
  15. Learning perspective Process perspective Customer perspective Financial perspective How will we sustain our ability to change and improve? What business processes must we excel at? How should we appear to our customers? How should we appear to our shareholders? insert ¥€$ :-)
  16. Ultimately all causal paths start from learning perspective
  17. Learning perspective Process perspective Customer perspective Financial perspective Ultimately all causal paths start from learning perspective
  18. Coming downhill is fun! Learning perspective Process perspective Customer perspective Financial perspective
  19. Customer perspective Actually it is a child's play! My son and my daughter ready to show what they’ve learned. Learning perspective Process perspective Customer perspective Financial perspective
  20. And business is down there “ Let’s take a break down there!” Learning perspective Process perspective Customer perspective Financial perspective
  21. Textbook says Balanced Scorecard is a management system
  22. And that’s true!
  23. Balanced Scorecard is a Management System
  24. Not just a measurement system
  25. You do not just measure your heart beat
  26. You use the heart rate monitor to manage your exercise
  27. In order to Last longer Feel good Improve fitness Control weight …
  28. … and to improve learning Rule #1: Exercise boosts brain power Dr. John Medina Brain Rules
  29. Textbooks say “Strategy map helps to communicate strategy.”
  30. ?
  31. Does this really help to communicate their strategy to you?
  32. The Chip brothers call it Curse of Knowledge
  33. The Chip brothers call it Curse of Knowledge Trying to tell you everything about every possible strategy, with perfect accuracy, in one page.
  34. The Chip brothers call it Curse of Knowledge Trying to tell you everything about every possible strategy, with perfect accuracy, in one page. Is not made to stick
  35. You need to Make it simple, find the core of the idea, strip the idea down to its most critical essence.
  36. You need to Make it simple, find the core of the idea, strip the idea down to its most critical essence. five other sticky elements + =
  37. First we need to go back to the basics
  38. Mission statement <ul><li>tells you what the company is now </li></ul>
  39. “ We’re on a mission from God!”
  40. “ We’re on a mission from God!” Driven by their mission “ The Catholic orphanage they grew up in needs to pay $5,000 taxes in 11 days, or else it will be closed.”
  41. “ We’re on a mission from God!” They’ll never get caught by the police, ex-girlfriend, Country Bob, Good Old Boys, Illinois Nazis, more police, National Guard, SWAT teams. Driven by their mission “ The Catholic orphanage they grew up in needs to pay $5,000 taxes in 11 days, or else it will be closed.”
  42. Vision statement <ul><li>outlines what a company wants to be </li></ul>
  43. “ Imagine all the people living life in peace!”
  44. Well communicated Vision If you imagine, can you hear it?
  45. Strategy <ul><li>is a long term plan of action designed to achieve a particular goal, most often &quot;winning&quot; </li></ul>
  46. A map is handy to communicate (=Strategy map) how you plan to get (=Strategy) from where you are (=Mission) to where you want to be (=Vision)
  47. Now, let’s make the Strategy map for Manager’s Toolbox
  48. 1) Take an A4 paper
  49. 2) Draw a table
  50. 3) Fill in the key words
  51. 4) Fill in the Mission Life-long learning
  52. 5) Fill in the Vision Improved management and leadership skills
  53. 6) Fill in the Strategy To internalize and summarize the knowledge I need during my management career.
  54. 7) Draw the Strategy Map
  55. Does this communicate my strategy to you?
  56. That was just the beginning…
  57. Balanced Scorecard is a management tool
  58. And should be used in management meetings
  59. 8) Measures are checked
  60. Oops, the measures…
  61. Let’s take just one example, but a typically difficult one
  62. Customer satisfaction
  63. I am the only customer to Manager’s Toolbox and I will be satisfied if
  64. People visit my blog and leave comments
  65. People visit my blog and leave comments here
  66. People visit my blog and leave comments view my presentations and download them or
  67. People visit my blog and leave comments view my presentations and download them or here
  68. People visit my blog and leave comments view my presentations and download them or here
  69. Where were we?
  70. Balanced Scorecard is used in management meetings
  71. 8) Measures are checked
  72. 9) Achievement is checked
  73. 10) Trend is followed
  74. And last but not least
  75. 11) Actions are agreed
  76. 8) And again in next meeting
  77. That is Manager’s Toolbox’s Really Simple Balanced Scorecard By Samurai
  78. 1 A4 to prepare
  79. 1 slide to communicate
  80. 1 A4 to execute
  81. But you need
  82. 100% Management commitment to build and use a management system
  83. I have 100% management support and I’ve read these books This is a good textbook!
  84. <ul><li>Good luck on building and using Really Simple Balanced Scorecard! Send me an email and I’ll send you the step-by-step excel template </li></ul>by Samurai http://managerstoolbox.blogspot.com/
  85. Photos <ul><li>Hikers at Mt Fuji & children skiing, my personal photos </li></ul><ul><li>Samurai sword, Pulse, Trekking, You are here –map, Tool, Meeting room & Smiley from Stock.xchng http://www.sxc.hu/ </li></ul><ul><li>Mt Fuji, http://www.sxc.hu/photo/907490 </li></ul><ul><li>Ski resort, http://www.flickr.com/photos/buck82/94755839/ </li></ul><ul><li>Snow boarders, http://www.flickr.com/photos/altus/370571191/ </li></ul><ul><li>Heart rate monitor, http://www.flickr.com/photos/publicenergy/254413431/ </li></ul><ul><li>Brain rules, http:// www.brainrules.net/mediakit </li></ul><ul><li>Lennon’s Imagine http://www.flickr.com/photos/jeffpearce/473580035/ </li></ul><ul><li>Manager, http://www.sxc.hu/photo/708280 </li></ul><ul><li>DVD & book covers, www.amazon.com </li></ul><ul><li>Wikipedia, www.wikipedia.org </li></ul><ul><li>Exercise zones, www.heartratemonitorsusa.com </li></ul><ul><li>Mt Fuji routes & Hakuba ski map, google images (couldn’t find anywhere else) </li></ul><ul><li>Complex strategy map, www.valuebasedmanagement.net </li></ul>

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