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Balanced Score Card in Personal Life
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Balanced Score Card in Personal Life

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Applying the Balanced Score Card to your Personal Life

Applying the Balanced Score Card to your Personal Life


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  • 1. Vancouver Community College ID 3102 Provincial Instructor Diploma Program Instructional Techniques PIDP ID 3102 Balanced Score Card Marko Wolf-Pany, P.Eng. Wolf- Vancouver Community College Provincial Instructor Diploma Program Tuesday, October 28, 2008 Marko Wolf-Pany, P.Eng. Wolf- VCC – PIDP – ID 3102 0 Process Improvement Consultant – Project Management Consultant Tuesday, October 28, 2008 Marko Wolf Pany, P.Eng.  Professional Engineer (P.Eng.), Ontario  B.Eng. Honours, Electrical Engineering, Carleton University  Software Engineering Institute (SEI) Software Capability Evaluation (SCE) Evaluator  CMMI / ITT Senior Manager, TELUS / Accenture / Vancouver  Program / Project / Process Improvement Management Consultant  Director, Software Engineering Management  Program Manager -SEI CMM based Software Process Improvement (SPI) Programs  Member of the company’s Baldrige National Quality Program Steering Council  Director, Systems Engineering -Technical Authority responsible for all Information Technology (IT) Projects in Latin America  Project Manager / Technical Manager, Land (Army) Software Engineering Centre (LSEC), Department of National Defence (DND)  Member of the Software Engineering Process Group (SEPG) Marko Wolf-Pany, P.Eng. Wolf- Process Improvement Consultant – Project Management Consultant 1 Tuesday, September 28, 2008 Marko Wolf-Pany, P.Eng. Process Improvement Consultant Project Management Consultant Tuesday, October 28, 2008 - 1
  • 2. Vancouver Community College ID 3102 Provincial Instructor Diploma Program Instructional Techniques History of the Balanced Scorecard  In 1992, an article by Robert Kaplan and David Norton entitled quot;The Balanced Scorecard - Measures that Drive Performancequot; in the Harvard Business Review caused a lot of attention for their method, and led to their business bestseller, quot;The Balanced Scorecard: Translating Strategy into Actionquot;, published in 1996.  The Balanced Scorecard (BSC) is a performance management tool which began as a concept for measuring whether the smaller-scale operational smaller- activities of a company are aligned with its larger-scale objectives in terms of larger- vision and strategy.  By focusing not only on financial outcomes but also on the operational, marketing and developmental inputs to these, the Balanced Scorecard helps provide a more comprehensive view of a business, which in turn helps organizations act in their best long-term interests. long- Marko Wolf-Pany, P.Eng. Wolf- Process Improvement Consultant – Project Management Consultant 2 Tuesday, September 28, 2008 History of the Balanced Scorecard  The financial performance of an organization is essential for its success.  Even non-profit organizations must deal in a sensible way with funds they non- receive.  However, a pure financial approach for managing organizations suffers from two drawbacks:  It is historical.  Whilst it tells us what has happened to the organization, it may not tell us what is currently happening.  Nor it is a good indicator of future performance.  It is too low.  It is common for the current market value of an organization to exceed the market value of its assets.  Tobin's-q measures the ratio of the value of a company's assets to its market value. Tobin's-  The excess value is resulting from intangible assets.  This kind of value is not measured by normal financial reporting. Marko Wolf-Pany, P.Eng. Wolf- Process Improvement Consultant – Project Management Consultant 3 Tuesday, September 28, 2008 Marko Wolf-Pany, P.Eng. Process Improvement Consultant Project Management Consultant Tuesday, October 28, 2008 - 2
  • 3. Vancouver Community College ID 3102 Provincial Instructor Diploma Program Instructional Techniques The 4 perspectives of the Balanced Scorecard  The Balanced Scorecard method of Kaplan and Norton is a strategic approach, and performance management system, that enables organizations to translate a company's vision and strategy into implementation, working from 4 perspectives:  Financial perspective.  Customer perspective.  Business process perspective.  Learning and growth perspective.  This allows the monitoring of present performance, but the method also tries to capture information about how well the organization is positioned to perform in the future. Marko Wolf-Pany, P.Eng. Wolf- Process Improvement Consultant – Project Management Consultant 4 Tuesday, September 28, 2008 Benefits of the Balanced Scorecard  Kaplan and Norton cite the following benefits of the usage of the Balanced Scorecard:  Focusing the whole organization on the few key things needed to create breakthrough performance.  Helps to integrate various corporate programs. Such as: quality, re-engineering, and re- customer service initiatives.  Breaking down strategic measures towards lower levels, so that unit managers, operators, and employees can see what's required at their level to achieve excellent overall performance. Marko Wolf-Pany, P.Eng. Wolf- Process Improvement Consultant – Project Management Consultant 5 Tuesday, September 28, 2008 Marko Wolf-Pany, P.Eng. Process Improvement Consultant Project Management Consultant Tuesday, October 28, 2008 - 3
  • 4. Vancouver Community College ID 3102 Provincial Instructor Diploma Program Instructional Techniques Kaplan and Norton's Balanced Scorecard Marko Wolf-Pany, P.Eng. Wolf- 6 Process Improvement Consultant – Project Management Consultant Tuesday, October 28, 2008 1. The Financial Perspective  The financial perspective examines if the company’s implementation and execution of its strategy are contributing to the bottom-line improvement of the bottom- company.  Key Financial Performance Indicators  Cash flow  ROI  Financial Result  Return on capital employed  Return on equity Marko Wolf-Pany, P.Eng. Wolf- Process Improvement Consultant – Project Management Consultant 7 Tuesday, September 28, 2008 Marko Wolf-Pany, P.Eng. Process Improvement Consultant Project Management Consultant Tuesday, October 28, 2008 - 4
  • 5. Vancouver Community College ID 3102 Provincial Instructor Diploma Program Instructional Techniques 2. The customer perspective  The customer perspective defines the value proposition that the organization will apply in order to satisfy customers and thus generate more sales to the most desired (i.e. the most profitable) customer groups.  Key Customer Performance Indicators  Delivery Performance to Customer - by Date  Quality Performance to Customer - by Quality  Customer satisfaction rate  Customer Loyalty  Customer retention Marko Wolf-Pany, P.Eng. Wolf- Process Improvement Consultant – Project Management Consultant 8 Tuesday, September 28, 2008 3. The Business Process perspective  The internal process perspective is concerned with the processes that create and deliver the customer value proposition.  Key Internal Business Processes Performance Indicators  Number of Activities  Opportunity Success Rate  Accident Ratios  Overall Equipment Effectiveness Marko Wolf-Pany, P.Eng. Wolf- Process Improvement Consultant – Project Management Consultant 9 Tuesday, September 28, 2008 Marko Wolf-Pany, P.Eng. Process Improvement Consultant Project Management Consultant Tuesday, October 28, 2008 - 5
  • 6. Vancouver Community College ID 3102 Provincial Instructor Diploma Program Instructional Techniques 4. Learning and Growth perspective  The Innovation & Learning Perspective is concerned with the jobs (human capital), the systems (information capital), and the climate (organization capital) of the enterprise.  Key Learning & Growth Performance Indicators  Investment Rate  Illness rate  Internal Promotions %  Employee Turnover  Gender Ratios Marko Wolf-Pany, P.Eng. Wolf- Process Improvement Consultant – Project Management Consultant 10 Tuesday, September 28, 2008 Balanced Score Card $ QUALITY (Profits, (Products & RoI, etc.) Services) CUSTOMER EMPLOYEE SATISFACTION SATISFACTION Marko Wolf-Pany, P.Eng. Wolf- Process Improvement Consultant – Project Management Consultant 11 Tuesday, October 28, 2008 Marko Wolf-Pany, P.Eng. Process Improvement Consultant Project Management Consultant Tuesday, October 28, 2008 - 6
  • 7. Vancouver Community College ID 3102 Provincial Instructor Diploma Program Instructional Techniques Personal Balanced Score Card $ FINANCIAL QUALITY BALANCE OF LIFE FAMILY & PERSONAL FRIENDS SATISFACTION SATISFACTION Marko Wolf-Pany, P.Eng. Wolf- Process Improvement Consultant – Project Management Consultant 12 Tuesday, October 28, 2008 Is Your Life Balanced ? Marko Wolf-Pany, P.Eng. Wolf- 13 Process Improvement Consultant – Project Management Consultant Tuesday, October 28, 2008 Marko Wolf-Pany, P.Eng. Process Improvement Consultant Project Management Consultant Tuesday, October 28, 2008 - 7