Really Simple Balanced Scorecard

Really Simple Balanced Scorecard By Samurai

Textbook examples of Balanced Scorecard are complex

Manager’s Toolbox example of Balanced Scorecard is simple

1 A4 to prepare 1 slide to communicate 1 A4 to execute

Learning perspective Process perspective Customer perspective Financial perspective Acquiring knowledge Summarizing knowledge Customer satisfaction Profitable growth insert ¥€$ :-)

Textbooks say “Ultimately all causal paths lead to financial measures.”

Ultimately all causal paths lead to financial measures Financial perspective Customer perspective Process perspective Learning perspective

That’s an uphill battle! Financial perspective Customer perspective Process perspective Learning perspective

That’s an uphill battle! Financial perspective Customer perspective Process perspective Learning perspective Been there, done that!

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

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?”

To achieve our vision, how will we sustain our ability to change and improve?

Manager’s Toolbox turns the perspectives upside down

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 ¥€$ :-)

Ultimately all causal paths start from learning perspective

Learning perspective Process perspective Customer perspective Financial perspective Ultimately all causal paths start from learning perspective

Coming downhill is fun! Learning perspective Process perspective Customer perspective Financial perspective

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

And business is down there “ Let’s take a break down there!” Learning perspective Process perspective Customer perspective Financial perspective

Textbook says Balanced Scorecard is a management system

And that’s true!

Balanced Scorecard is a Management System

Not just a measurement system

You do not just measure your heart beat

You use the heart rate monitor to manage your exercise

In order to Last longer Feel good Improve fitness Control weight …

… and to improve learning Rule #1: Exercise boosts brain power Dr. John Medina Brain Rules

Textbooks say “Strategy map helps to communicate strategy.”

?

Does this really help to communicate their strategy to you?

The Chip brothers call it Curse of Knowledge

The Chip brothers call it Curse of Knowledge Trying to tell you everything about every possible strategy, with perfect accuracy, in one page.

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

You need to Make it simple, find the core of the idea, strip the idea down to its most critical essence.

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 + =

First we need to go back to the basics

Mission statement

tells you what the company is now

“ We’re on a mission from God!”

“ 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.”

“ 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.”

Vision statement

outlines what a company wants to be

“ Imagine all the people living life in peace!”

Well communicated Vision If you imagine, can you hear it?

Strategy

is a long term plan of action designed to achieve a particular goal, most often "winning"

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)

Now, let’s make the Strategy map for Manager’s Toolbox

1) Take an A4 paper

2) Draw a table

3) Fill in the key words

4) Fill in the Mission Life-long learning

5) Fill in the Vision Improved management and leadership skills

6) Fill in the Strategy To internalize and summarize the knowledge I need during my management career.

7) Draw the Strategy Map

Does this communicate my strategy to you?

That was just the beginning…

Balanced Scorecard is a management tool

And should be used in management meetings

8) Measures are checked

Oops, the measures…

Let’s take just one example, but a typically difficult one

Customer satisfaction

I am the only customer to Manager’s Toolbox and I will be satisfied if

People visit my blog and leave comments

People visit my blog and leave comments here

People visit my blog and leave comments view my presentations and download them or

People visit my blog and leave comments view my presentations and download them or here

Where were we?

Balanced Scorecard is used in management meetings

8) Measures are checked

9) Achievement is checked

10) Trend is followed

And last but not least

11) Actions are agreed

8) And again in next meeting

That is Manager’s Toolbox’s Really Simple Balanced Scorecard By Samurai

1 A4 to prepare

1 slide to communicate

1 A4 to execute

But you need

100% Management commitment to build and use a management system

I have 100% management support and I’ve read these books This is a good textbook!

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

by Samurai http://managerstoolbox.blogspot.com/

Photos

Hikers at Mt Fuji & children skiing, my personal photos

Samurai sword, Pulse, Trekking, You are here –map, Tool, Meeting room & Smiley from Stock.xchng http://www.sxc.hu/

Mt Fuji, http://www.sxc.hu/photo/907490

Ski resort, http://www.flickr.com/photos/buck82/94755839/

Snow boarders, http://www.flickr.com/photos/altus/370571191/

Heart rate monitor, http://www.flickr.com/photos/publicenergy/254413431/

Brain rules, http:// www.brainrules.net/mediakit

Lennon’s Imagine http://www.flickr.com/photos/jeffpearce/473580035/

Manager, http://www.sxc.hu/photo/708280

DVD & book covers, www.amazon.com

Wikipedia, www.wikipedia.org

Exercise zones, www.heartratemonitorsusa.com

Mt Fuji routes & Hakuba ski map, google images (couldn’t find anywhere else)

Complex strategy map, www.valuebasedmanagement.net

Really Simple Balanced Scorecard

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Notes on slide 1

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