2. Key Q’s
1. What is a balance scorecard and why it is?
2. Why business need it?
3. What are the challenges to balance scorecard while implementing it?
4. Is Nestle successfully used it, for their success?
5. How it helps in performance analysis?
3.
4. Why Business Need it?
While financial measures tell part of the story, the Balanced Scorecard offers an
overarching view a business’s strategic plan from the executive perspective. This, in turn,
provides a framework for the entire organization in terms of guiding performance. Specific
reasons that a company would use a Balanced Scorecard might include:
Communicate the business vision and strategy.
Share objectives that support the business’s vision and strategy
Show how these strategic objectives impact long-term goals and budgets.
Compare performance among diverse business units.
The Balanced Scorecard cascades your strategy.
5. Nestles BSC
1. Learning & Growth Perspective
Self-assessment for continuous improvement
Self-assessment for strategic & tactical planning
2. Business Process Perspective
Zero % defective
Continuous Production
Work Specialization
Dotherightthingsrighteverytime
MaximumUtilizationof Resources
3. Financial Perspective
Maximum Profit
Efficient use of capital
4. Customer Perspective
Quality product
Availability
Lifetime loyalty
Competitive intelligence
6. How it helps in Performance analysis?
Firstly, the financial perspective can help the company understand its
shareholders’ perception.
Secondly, an internal analysis makes it possible to identify the level of
operational procedures of Nestlé.
Nestlé seems to have a strong focus on Learning & Innovation perspective.
Finally, the consumer perspective is related to how customers perceive Nestlé.
7. Challenges
Absence of a Common Vocabulary
Complicating the initial implementation
Cascading to individual level is a challenge
Getting lost in the mechanics of tracking