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By
Naveed M. Khan
INTRODUCTION
 In 1992, Robert S. Kaplan and David Norton
 introduced the balanced scorecard, a concept for
 measuring a company's activities in terms of its vision
 and strategies, to give managers a comprehensive
 view of the performance of a business
Key Element
 The key new element is focusing not only on financial
 outcomes but also on the human issues that drive
 those outcomes, so that organizations focus on the
 future and act in their long-term best interest
BALANCE SCORE CARD
Financials
 According to each perspective of the balanced
  scorecard there are a number of KPIs.
 * Financial
      o Cash flow
      o ROI
      o Financial Result
      o Return on capital employed
      o Return on equity

Customer
 * Customer
       Delivery Performance to Customer - by Date
     Delivery Performance to Customer - by
  Quantity
      Customer satisfaction rate
      Customer retention
Internal Business Processes
   Number of Activities
   Supply Chain Management
   Operational Efficiency
Learning & Growth
   Investment on Employee’s Training
   Growth within the company
   Research and Innovation
Cause and Effect Relationship
Cause and Effect Relationship
Performance Drivers
 A good balance score card also have a mix of
  outcome measures and performance drivers
 Companies with greatly improved performances must
  identify how to increase sales to existing customers
 Example of TCP
 The four perspective should be considered template
  not a straight jacket
Balanced Score Card of TESCO
Customer
 Earn lifetime loyalty
 The aisles are clear
 I can get what I want
 The prices are good
 I don’t want to queue
 The staff are great
Finance
 Grow sales


 Maximize profits


 Manage our investment
Operations
 Shopping is better for customers
 Work is simpler for staff
 The way we operate is cheaper for Tesco
 The way we operate is responsible and safe
People/ Learning & Growth
 We trust and respect each other


 My manager supports me to do a good job


 My job is interesting I have the opportunity to

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Balanced score card 2 www.mobilemoviesite.com

  • 2. INTRODUCTION  In 1992, Robert S. Kaplan and David Norton introduced the balanced scorecard, a concept for measuring a company's activities in terms of its vision and strategies, to give managers a comprehensive view of the performance of a business
  • 3. Key Element  The key new element is focusing not only on financial outcomes but also on the human issues that drive those outcomes, so that organizations focus on the future and act in their long-term best interest
  • 5. Financials  According to each perspective of the balanced scorecard there are a number of KPIs.  * Financial  o Cash flow  o ROI  o Financial Result  o Return on capital employed  o Return on equity 
  • 6. Customer  * Customer  Delivery Performance to Customer - by Date  Delivery Performance to Customer - by Quantity  Customer satisfaction rate  Customer retention
  • 7. Internal Business Processes  Number of Activities  Supply Chain Management  Operational Efficiency
  • 8. Learning & Growth  Investment on Employee’s Training  Growth within the company  Research and Innovation
  • 9. Cause and Effect Relationship
  • 10. Cause and Effect Relationship
  • 11. Performance Drivers  A good balance score card also have a mix of outcome measures and performance drivers  Companies with greatly improved performances must identify how to increase sales to existing customers  Example of TCP  The four perspective should be considered template not a straight jacket
  • 13. Customer  Earn lifetime loyalty  The aisles are clear  I can get what I want  The prices are good  I don’t want to queue  The staff are great
  • 14. Finance  Grow sales  Maximize profits  Manage our investment
  • 15. Operations  Shopping is better for customers  Work is simpler for staff  The way we operate is cheaper for Tesco  The way we operate is responsible and safe
  • 16. People/ Learning & Growth  We trust and respect each other  My manager supports me to do a good job  My job is interesting I have the opportunity to