Balanced score card


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Balanced score card

  1. 1. Subject: Quality Management Faculty of Business Administration Group 6-KITT
  2. 2. CONTENT I. Introduction II. Purpose and Benefit III. Philosophy IV. The principle of application V. The way for Applying VI. Applicant for BSC in Vietnam
  3. 3. I. INTRODUCTION  Who? Robert S. Kaplan David Norton  When & Where? Starting from 1990, now is over the world.
  4. 4. I. INTRODUCTION  What? FINANCE Objective Measure Target Initiative LERNING AND GROWTH Objective Measure Target Initiative INTERNAL PROCESSES MISSION STRATEGY Objective Measure Target Initiative CUSTOMER Objective Measure Target Initiative
  5. 5. I. INTRODUCTION  Why? “3 in 1” : • One of the measuring performance system • One of the communication tools (or communication) • One of the managing method of The Effective Strategy within the organization.  How? Individual: interpret and implement The Effective Strategy in order to improving the performance and measuring the working productivity. Organization: improve treatment regimes poisoning, allocate logically human resources.
  6. 6. II. PURPOSE AND BENEFITS  Purpose Building a scorecard system : Perspective, Objective, Indicator, Target, Initiative of each person and each department => carry out, measure and manage the implementation of organizational strategy
  7. 7. II. PURPOSE AND BENEFITS  Benefit • Setting goals, targets appropriate with the general strategy of the organization through the scorecard system • Construction and adjustment actions of the organization by the measurement results by Scorecard • Expressing clearly, briefly strategy to all levels information, promote a spirit of co-ordinates => share • Overcoming the limitations of traditional methods: long cycles, not specified the problem, allocate resources disproportionately, only the short-term results
  8. 8. II. PURPOSE AND BENEFITS  Benefit • Solve four major hurdles in the strategy's implementation: vision barriers, human barriers, resource barriers and management barriers • Accurately assess the results of each level => preferential treatment policies, additional human resources • Creating a scientific basis for the planning and development of intangible: strategy training, development of business knowledge, Optimize Value management elements of internal processes
  9. 9. III. PHILOSOPHY • “Performance should be measured by people who create it”, not just be measured by someone else. • Each person is associated with one another and with the overall strategy of the organization according to the principle of the “cause and effect” theory. This is the basis for interpreting a common objectives for each person. strategy into
  11. 11. IV. THE PRINCIPAL OF APPLICATION The effective relations with staff and with other stakeholders (unions, distributors, major customers). Empower staff appropriately Links Scorecard system with oriented strategy of the organization chart ● Combined Measurement Assessment, Planning and Performance Improvements to management
  14. 14. STEP1: ASSESSMENT • Customer Values • Organization Pain • Organization Values • Vision & Mission
  15. 15. STEP1: ASSESSMENT • Mission? • Vision ? • Core value ? • Goals ? • SWOT analysis, Porter’s Five Forces, Competitive analysis, Interview. • Consultation of the Executive (Executive team)
  16. 16. STEP2: STRATEGY PLANNING Themes Strategic Results Strategies
  17. 17. STEP2: STRATEGY PLANNING Platform strategies to implement mission and vision of the company • 3 to 5 medium-term strategies (2-4 years) • Should be different from competitors. Ex: Effective quality training, customer service, maintain a good relationship with the Supplier,...
  18. 18. STEP3: OBJECTIVE • Strategy Elements
  19. 19. STEP3: OBJECTIVE The objectives of the company to implement the proposed strategies Each objective is reviewed base on 4 perspectives: • Finance • Customer • Internal process • Learn & Growth
  20. 20. STEP3: OBJECTIVE
  21. 21. STEP4: STARTEGY MAP Performance Drivers • Enablers • Causal Links •
  22. 22. STEP4: STARTEGY MAP Strategic mapping of the principle levels from top to bottom starting from the strategy of the organization Objectives will be reviewed to find the relationship between them. Causal relationship: cause and effect link
  23. 23. STEP5: PERFORMANCE MEASURES Performance Measures • Targets • Baselines •
  24. 24. STEP5: PERFORMANCE MEASURES Measures to evaluate the performance of the objective + Lagging Indicator: outcome- to be achieved + Leading Indicator. driverto achieve that outcome With numerical targets Ex: Objective: "Customer satisfaction“ → Measure1: Number of customer complaints(lagging)- 30 → Measure 2: counselor working hours with clients(Leading)-120
  25. 25. STEP6: INITIATIVES • New Projects
  26. 26. STEP6: INITIATIVES - Defining initiatives to complete each objective and measure
  27. 27. STEP7: AUTOMATION Software • Performance Reporting • Knowledge Sharing •
  28. 28. STEP7: AUTOMATION Everything (or most things) should be implemented in a software-based automation specialist for BSC: +Data collection, to test reports, chart review … Software, Performance Reporting, Knowledge sharing
  29. 29. CASCADE Alignment • Business & Support Unit Scorecards •
  30. 30. CASCADE Transferring content in the BSC Organization down to every employee in the enterprise to construct: + BSC Department level--> BSC Unit Level--> BSC Personal Level Building a BSC at each level which suit, consistent with the strategy map of that level
  31. 31. EVALUATION Performance Results • Revised Strategies •
  32. 32. EVALUATION Assessing the new BSC’s omission which need to amend or even remove in order to build a BSC product most suitable for company
  33. 33. • Customer Values • Organization Pain • Organization Values • Vision & Mission • Performance Results • Revised Strategies • Alignment • Business & Support Unit Scorecards • Themes • Strategic Results • Strategies • Strategy Elements • Software • Performance Reporting • Knowledge Sharing • Performance Drivers • Enablers • Causal Links • Performance Measures • Targets • Baselines • New Projects
  35. 35. V. APPLICATION OF BSC IN VIETNAM INTRODUCTION Vision “For a more beautiful and healthier life” Mission “DHG Pharma always provides high quality products and services to satisfy the aspiration for a more beautiful and healthier life.”
  36. 36. V. APPLICATION OF BSC IN VIETNAM INTRODUCTION Importance milestones: -1996: The first year that DHG Pharma’s products was elected as “Vietnam High Quality Goods”, the factories complied with the GMP standard, being the leader of Vietnam pharmaceutical industry until now. - 2004: Equitization - 2006: “DHG” being listed on HOSE
  38. 38. THE APPLICATION OF BSC Economic situation: The financial crisis in 2008 • Input materials for pharmaceutical production, largely due to imports • Exchange rate fluctuation
  39. 39. THE APPLICATION OF BSC The need to have a model of strategic planning and control?
  40. 40. THE APPLICATION OF BSC Sales and marketing How can we develop an effective marketing plan? Personnel How can we manage what we have now more effectively? ------------------- ------------------- Production and products Which plans to improve the internal process? ------------------- Finance and investment What else we can do with the current production facility? -------------------
  41. 41. THE APPLICATION OF BSC Sales and marketing (Customer) + Minimizing the maximum competitive advantage, + Focusing on the development of key product groups, + Focus on traditional customer groups. + Construction while enhancing the brand image in the minds of consumers through media activities, social activities with criteria to mini + The settlement of debts, minimize costs and optimize efficiency.
  42. 42. THE APPLICATION OF BSC Finance and investment (Finance) + Reasonable timing for storage of raw materials, + The balance between exchange rates and raw material prices, + Review and standardize the investment projects to refer to carrying out the project really necessary and effective.
  43. 43. THE APPLICATION OF BSC Production and products (Internal Processes) + construct standard processes to reduce wastage, reduce costs; + organize activities to stimulate creativity in order to increase productivity and improve product’s quality. Personnel (Learning and Growth) + strengthen, mobilize additional personnel for sales line, + enhance training key staff and organize a series of training programs for employees.
  44. 44. THE APPLICATION OF BSC Results
  45. 45. MISSION ROSTER STT MSSV Tên Nhiệm Vụ 1 71006087 Nguyễn Ánh Chiêu Dương Conclusion and content of part II- presenting 2 71006140 Đoàn Doãn Ngọc Trinh PowerPoint- Presenting 3 71006055 Trần Thị Quỳnh Như 4 71006148 Nguyễn Thị Hải Yến The Way of application (Steps) Introduction and conlusion 5 71006080 Nguyễn Diệp Ngọc Yến Content of part II 6 71006136 Nguyễn Thị Thuỳ Trang Purpose and Benefits 7 71006147 Huỳnh Hải Yến Principal and examples 8 Dương Kim Mai Requirements of method and examples