Really   Simple BalancedScorecard
Textbook examples of Balanced Scorecard     are complex
Manager’s Toolbox example of    Balanced Scorecard          is simple
1 A4to prepare                  1 slide             to communicate                                 1 A4                   ...
insertLearning                Acquiring knowledgeperspectiveProcess                Summarizing knowledgeperspectiveCustome...
Textbooks say“Ultimately all causal pathslead to financial measures.”
Ultimately all causal paths  lead to financial measuresFinancial perspectiveCustomer perspectiveProcess perspectiveLearnin...
That’s an uphill battle!Financial perspectiveCustomer perspectiveProcess perspectiveLearning perspective
That’s an uphill battle!                         Been there,Financial perspective     done that!Customer perspectiveProces...
They stumbled on learning                        With jeans, sneakers & ¥100 raincoats                        In really, r...
The fundamental questionsFinancial perspective   “To succeed financially, how should we                        appear to o...
To achieve our vision,how will we sustain our abilityto change and improve?
Manager’s Toolboxturns the perspectivesupside down
Learning      insert      How will we sustain ourperspective            ability to change and improve?Process             ...
Ultimately all causal paths        start from   learning perspective
Ultimately all causal pathsstart from learning perspective                     Learning perspective                      P...
Coming downhill is fun!             Learning perspective              Process perspective             Customer perspective...
Actually it is a childs play!     My son                            Learning perspectiveand my daughter ready to show  wha...
And business is down there“Let’s take a break  down there!”        Learning perspective                       Process pers...
Textbook says   Balanced Scorecardis a management system
And that’s true!
Balanced Scorecard is a   Management       System
Not just ameasurement system
You do not just measure    your heart beat
You use the   heart rate monitorto manage your exercise
In order to      Last longer       Feel good  Improve fitness  Control weight              …
… and to improve learning                  Rule #1:                  Exercise boosts                  brain power         ...
Textbooks say   “Strategy map helpsto communicate strategy.”
?
Does this reallyhelp to communicatetheir strategy to you?
The Chip brothers call it  Curse of Knowledge
The Chip brothers call it      Curse of KnowledgeTrying to tell you everythingabout every possible strategy,with perfect a...
The Chip brothers call it      Curse of KnowledgeTrying to tell you everythingabout every possible strategy,with perfect a...
You need toMake it simple,find the core of the idea,strip the idea downto its most critical essence.
You need toMake it simple,find the core of the idea,strip the idea downto its most critical essence.                      ...
First we need to go back to the basics
Mission statementtells you what the company is now
“We’re ona mission from God!”
“We’re on              a mission from God!”Driven by their mission“The Catholic orphanagethey grew up inneeds to pay$5,000...
“We’re on              a mission from God!”Driven by their mission       They’ll never get caught“The Catholic orphanage  ...
Vision statementoutlines what a companywants to be
“Imagine all the people  living life in peace!”
Well communicated Vision             If you imagine,            can you hear it?
Strategyis a long term plan of actiondesigned to achieve a particulargoal, most often "winning"
A map is handy to communicate           (=Strategy map)     how you plan to get             (=Strategy)     from where you...
Now, let’s make the     Strategy mapfor 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 VisionImproved management and leadership skills
6) Fill in the StrategyTo 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…
BalancedScorecardis amanagementtool
And should be used inmanagement 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 blogand leave comments
People visit my blogand leave comments                 here
People visit my blogand leave comments             or       view my presentations          and download them
People visit my blogand leave comments             or       view my presentations          and download them              ...
People visit my blogand leave comments             or       view my presentations          and download them              ...
Where were we?
Balanced Scorecard     is used inmanagement 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 ...
1 A4 to prepare
1 slide to communicate
1 A4 to execute
But you need
100%Managementcommitmentto buildand use amanagementsystem
Balanced scorecard
Balanced scorecard
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Balanced scorecard

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Balanced scorecard

  1. 1. Really Simple BalancedScorecard
  2. 2. Textbook examples of Balanced Scorecard are complex
  3. 3. Manager’s Toolbox example of Balanced Scorecard is simple
  4. 4. 1 A4to prepare 1 slide to communicate 1 A4 to execute
  5. 5. insertLearning Acquiring knowledgeperspectiveProcess Summarizing knowledgeperspectiveCustomer :-) Customer satisfactionperspectiveFinancial ¥€$ Profitable growthperspective
  6. 6. Textbooks say“Ultimately all causal pathslead to financial measures.”
  7. 7. Ultimately all causal paths lead to financial measuresFinancial perspectiveCustomer perspectiveProcess perspectiveLearning perspective
  8. 8. That’s an uphill battle!Financial perspectiveCustomer perspectiveProcess perspectiveLearning perspective
  9. 9. That’s an uphill battle! Been there,Financial perspective done that!Customer perspectiveProcess perspectiveLearning perspective
  10. 10. They stumbled on learning With jeans, sneakers & ¥100 raincoats In really, really, really bad hail storm 1 hour to nearest shelterFinancial perspectiveCustomer perspectiveProcess perspectiveLearning perspective
  11. 11. The fundamental questionsFinancial perspective “To succeed financially, how should we appear to our shareholders?”Customer perspective “To achieve our vision, how should we appear to our customers?”Process perspective “To satisfy our shareholders and customers, what business processes must we excel at?”Learning perspective “To achieve our vision, how will we sustain our ability to change and improve?”
  12. 12. To achieve our vision,how will we sustain our abilityto change and improve?
  13. 13. Manager’s Toolboxturns the perspectivesupside down
  14. 14. Learning insert How will we sustain ourperspective ability to change and improve?Process What business processesperspective must we excel at?Customer :-) How should weperspective appear to our customers?Financial ¥€$ How should weperspective appear to our shareholders?
  15. 15. Ultimately all causal paths start from learning perspective
  16. 16. Ultimately all causal pathsstart from learning perspective Learning perspective Process perspective Customer perspective Financial perspective
  17. 17. Coming downhill is fun! Learning perspective Process perspective Customer perspective Financial perspective
  18. 18. Actually it is a childs play! My son Learning perspectiveand my daughter ready to show what they’ve learned. Process perspective Customer perspective Financial perspective
  19. 19. And business is down there“Let’s take a break down there!” Learning perspective Process perspective Customer perspective Financial perspective
  20. 20. Textbook says Balanced Scorecardis a management system
  21. 21. And that’s true!
  22. 22. Balanced Scorecard is a Management System
  23. 23. Not just ameasurement system
  24. 24. You do not just measure your heart beat
  25. 25. You use the heart rate monitorto manage your exercise
  26. 26. In order to Last longer Feel good Improve fitness Control weight …
  27. 27. … and to improve learning Rule #1: Exercise boosts brain power Dr. John Medina Brain Rules
  28. 28. Textbooks say “Strategy map helpsto communicate strategy.”
  29. 29. ?
  30. 30. Does this reallyhelp to communicatetheir strategy to you?
  31. 31. The Chip brothers call it Curse of Knowledge
  32. 32. The Chip brothers call it Curse of KnowledgeTrying to tell you everythingabout every possible strategy,with perfect accuracy,in one page.
  33. 33. The Chip brothers call it Curse of KnowledgeTrying to tell you everythingabout every possible strategy,with perfect accuracy,in one page. t Is no tick to s made
  34. 34. You need toMake it simple,find the core of the idea,strip the idea downto its most critical essence.
  35. 35. You need toMake it simple,find the core of the idea,strip the idea downto its most critical essence. five other + = sticky elements
  36. 36. First we need to go back to the basics
  37. 37. Mission statementtells you what the company is now
  38. 38. “We’re ona mission from God!”
  39. 39. “We’re on a mission from God!”Driven by their mission“The Catholic orphanagethey grew up inneeds to pay$5,000 taxesin 11 days,or elseit will be closed.”
  40. 40. “We’re on a mission from God!”Driven by their mission They’ll never get caught“The Catholic orphanage bythey grew up in the police,needs to pay ex-girlfriend,$5,000 taxes Country Bob,in 11 days, Good Old Boys,or else Illinois Nazis,it will be closed.” more police, National Guard, SWAT teams.
  41. 41. Vision statementoutlines what a companywants to be
  42. 42. “Imagine all the people living life in peace!”
  43. 43. Well communicated Vision If you imagine, can you hear it?
  44. 44. Strategyis a long term plan of actiondesigned to achieve a particulargoal, most often "winning"
  45. 45. 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)
  46. 46. Now, let’s make the Strategy mapfor Manager’s Toolbox
  47. 47. 1) Take an A4 paper
  48. 48. 2) Draw a table
  49. 49. 3) Fill in the key words
  50. 50. 4) Fill in the Mission Life-long learning
  51. 51. 5) Fill in the VisionImproved management and leadership skills
  52. 52. 6) Fill in the StrategyTo internalize and summarize the knowledge I need during my management career.
  53. 53. 7) Draw the Strategy Map
  54. 54. Does this communicate my strategy to you?
  55. 55. That was just the beginning…
  56. 56. BalancedScorecardis amanagementtool
  57. 57. And should be used inmanagement meetings
  58. 58. 8) Measures are checked
  59. 59. Oops, the measures…
  60. 60. Let’s take just one example, but a typically difficult one
  61. 61. Customer satisfaction
  62. 62. I am the only customer to Manager’s Toolbox and I will be satisfied if
  63. 63. People visit my blogand leave comments
  64. 64. People visit my blogand leave comments here
  65. 65. People visit my blogand leave comments or view my presentations and download them
  66. 66. People visit my blogand leave comments or view my presentations and download them here
  67. 67. People visit my blogand leave comments or view my presentations and download them here
  68. 68. Where were we?
  69. 69. Balanced Scorecard is used inmanagement meetings
  70. 70. 8) Measures are checked
  71. 71. 9) Achievement is checked
  72. 72. 10)Trend is followed
  73. 73. And last but not least
  74. 74. 11)Actions are agreed
  75. 75. 8) And again in next meeting
  76. 76. That is Manager’s Toolbox’s Really Simple Balanced Scorecard By Samurai
  77. 77. 1 A4 to prepare
  78. 78. 1 slide to communicate
  79. 79. 1 A4 to execute
  80. 80. But you need
  81. 81. 100%Managementcommitmentto buildand use amanagementsystem

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