Application Of Bsc
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Implementation of business Strategy through Balace Scorecard

Implementation of business Strategy through Balace Scorecard

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  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change

Application Of Bsc Presentation Transcript

  • 1. Application of Balanced Scorecard In Process Industry: A Case Study of Agro Base Company in Developing Country
    Presented By:
    Umar Farooq
  • 2. Why Balanced Scorecard
    • 95% of typical workforcedoesnotunderstanditsorganizations’ strategy
    • 3. 90% of organizations fail to execute their strategies successfully
    • 4. 70% of organizations do not link middle management incentives to strategy
    • 5. 85% of Mgt teams Spends less than 1 hr per month On strategy issues
    • 6. 60% Of Org Don’t link Strategy & budgets
    • 7. 92% of orgs Do not report On lead indicators
  • Balanced Scorecard
    A balance scorecard translates an organization’s
    mission and strategy into set of performance
    measures that provide the framework for
    implementing its strategy
  • 8. Monsanto Introduction:
    • Monsanto is US (St. Louise Missouri) base multinational agriculture organization.
    • 9. Established in 1901 Start with Agro chemical business.
    • 10. Monsanto came to Pakistan on October 01, 1998
    • 11. Strong core business in Pakistan based on DEKALB and Asgrow Corn seed brands
    • 12. First agriculture company in Pakistan to invest in all essential components of seed business
    • 13. Certified OHSAS 18001, ISO 14001, ISO 9001
  • Mission Statement of Monsanto:
    “ We apply innovation and technology to help farmers around the world produce more while conserving more. We help farmers grow yield sustainably so they can be successful, produce healthier foods, better animal feeds and more fiber, while also reducing agriculture's impact on our environment “
  • 14. Monsanto Stewardship:
    • Financial stewardship to ensure that financial standards are met;
    • 15. Environmental, safety and health stewardship to protect the safety of our people, communities and the environment;
    • 16. And societal engagement to consider whether we are doing the right things and doing them right
  • New Vision for Agriculture
    A new vision for agriculture built upon three pillars. These pillars are advanced breeding, biotechnology, and improved agronomic practices.  When all three components are fully integrated we can provide the best tools and technology to farmers so that they can meet the goals of feeding, clothing, and fueling the world
  • 17. Product of Monsanto:
    Hybrid Corn Seed
    Spring & Autumn Variety:
    Corn 919, Corn 5219, Corn Opener
    Corn 6142, Corn 6525
    BT Cotton:
    Chemistry:
    Roundup: Herbicides
    Vegetable Seeds:
    Tomato, Cucumber, Green Chili, Cabbage,
    Watermelon and many other
  • 18. Process Detail of Corn Seed:
    Ear Corn
    Cleaning
    Chemical
    treatment
    Intake
    Packing
    Drying
    Gravity
    Separating
    Sorting
    Temporary
    Warehouse
    Shelling
    Drying/Shelling Process
    Conditioning Process
    Packing Process
  • 19. Application of Balanced Scorecard
  • 20. 4 Perspectives in Balanced Scorecard
    The Strategy
    Financial Perspective
    If we succeed, how will we look to our shareholders?
    Customer Perspective
    To achieve our vision, how must we look to our customers?
    Internal Perspective
    To satisfy our customers, which processes must we excel at?
    Learning & Growth Perspective
    To achieve our vision, how must our organization learn and improve?
  • 21. BSC Implementation Steps:
  • 22. Strategy Map of Monsanto
    Enhance Long-term Shareholder Value
    Improve
    Cost Efficiency
    Increase Revenue Growth
    Financial
    Customer Satisfaction & Retention
    Enhance
    Brand Image
    Build High Performance Products
    Customer
    Drive Demand through Customer Relation Management
    Achieve Operational Excellence
    Implement Good
    Environmental Policy
    Manage Dramatic Growth through Innovation
    Internal Process
    Learning & Growth
    Power Delegation
    Build Learning
    Culture/Employee Satisfaction
    Expand Capabilities with Technology
  • 23. Execution
    Development Projects, Activities, etc.
    Quality Projects, Activities, etc.
    – 1 –
    Identify Initiatives
    Corporate Projects, Activities, etc.
    Marketing Projects, Activities, etc.
    FinancialPerspective
    CustomerPerspective
    – 2 –
    Screen Initiatives
    InternalPerspective
    OrganizationLearning
    Output: Short List of Strategically Aligned Initiatives
  • 24. Prospects :
    Vision &
    Strategy
  • 25. Customer Prospect:
    Customer Perspective identifies Targeted
    Customer and market Segments and Measures
    the Organization’s success in these Segments
    In today’s business scenario “Customer is the king”
  • 26. Customer Prospect:
    Customer Retention
    Customer Profitability
    Customer Satisfaction
    Market Share
    Customer Acquisition
    Price
    Availability
    Brand
    Service
    Quality
  • 27. Customer Perspective:
  • 28. Customer Perspective:
  • 29. Customer Perspective:
  • 30. Customer Perspective:
  • 31. Customer Perspective:
  • 32. Customer Perspective:
  • 33. Internal Business Process Prospective:
    This perspective focuses on internal operations
    That create value for customers that ,in turn,
    furthers the financial perspective by increasing
    the shareholder value
    There are four main themes in this perspective, namely:
    • Operations Management Process
    • 34. Customer Management Process
    • 35. Innovation Process
    • 36. Regulatory and Social Process
  • Strategic Objectives in Internal Process
    Operations
    Management
    Processes
    Customer
    Management
    Processes
    Regulatory
    and Social
    Processes
    Innovation
    Processes
    Processes that produce and deliver products and services
    Processes that enhance customer value
    Processes that create new products and services
    Processes that improve communities and the environment
    • Supply
    • 37. Production
    • 38. Distribution
    • 39. Selection
    • 40. Acquisition
    • 41. Retention
    • 42. Growth
    • 43. New Ideas
    • 44. R&D Portfolio
    • 45. Design/ Develop
    • 46. Launch
    • 47. Environment
    • 48. Safety & Health
    • 49. Employment
    • 50. Community
  • Internal Business Process Prospective:
  • 51. Internal Business Process Prospective:
  • 52. Internal Business Process Prospective:
  • 53. Internal Business Process Prospective:
  • 54. Learning & Growth Perspective
    This perspective reflects the capability that a company should have, namely:
    • Human Capital
    • 55. Organization Capital
    • 56. Information Capital
    • 57. This perspective shows us that good human resource development system, organizational system and information system forms a solid foundation for improving company performance.
  • Learning & Growth Prospect:
    Organization Capital
    Information Capital
    Human Capital
    • Skills
    • 58. Knowledge
    • 59. Attitude
    • 60. Systems
    • 61. Database
    • 62. Networks
    • 63. Culture
    • 64. Leadership
    • 65. Organization Development
  • Learning & Growth Prospective:
  • 66. Learning & Growth Prospective:
  • 67. Learning & Growth Prospective:
  • 68. Learning & Growth Prospective:
  • 69. Financial Prospective:
    In the financial perspective, the strategic goal
    is the long-term shareholder value. This goal is
    driven by two factors, namely :
    revenue growth and cost efficiency.
  • 70. Financial Prospective:
    Long-term Shareholder Value
    Revenue Growth
    Cost Efficiency
    Expand Revenue Opportunities
    Improve Cost Structure
    Increase Asset Utilization
    Enhance Customer Value
  • 71. Financial Prospective:
  • 72. Benefits:
    • Gives the complete picture of the employee as well as the organizational performance.
    • 73. It guides users in determining the critical success factors and performance indicators.
    • 74. Strategic review or analysis of the organizational capabilities and performance.
    • 75. Focusing the whole organization on the few key things needed to create breakthrough performance.
    • 76. Integrating and directing the performance and efforts from the lowest levels in the organization to achieve excellent overall performance.
  • Conclusion:
    • BSC implemented the strategic framework in process industry
    • 77. BSC helped to measure performance of the organization and highlighted the need for business redesign of organization.
    • 78. It also provided a flexible framework that makes company objectives actionable at all level of organization.
    • 79. BSC aligned the organization (Monsanto) with strategy