2. What are Management Tools?
These tools reflect how their outcomes contribute to the needs, considering the
downfall and companies' market situation. The top ten includes:
Strategic planning
Customer relationship management
Employee engagement surveys
Benchmarking
Balanced scorecard
Core competency
Outsourcing
Change management programs
Supply chain management
Mission statement and vision statement
Market segmentation
Total quality management
9/13/2020
Dr. B.S. Powdwal
www.brilliantsolutionss.com
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3. What is a Balanced Score Card?
• The Balanced Scorecard is a management
system.
• It’s a way of looking at your organization that
focuses on your big-picture strategic goals.
• It also helps you choose the right things to
measure so that you can reach those goals.
• The Balanced Scorecard—Measures that
Drive Performance
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Dr. B.S. Powdwal
www.brilliantsolutionss.com
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5. Overview
• The Balanced Scorecard is a management
system.
• It’s a way of looking at your organization that
focuses on your big-picture strategic goals.
• It also helps you choose the right things to
measure so that you can reach those goals.
9/13/2020
Dr. B.S. Powdwal
www.brilliantsolutionss.com
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6. Perspectives
• LEARNING AND GROWTH
• INTERNAL BUSINESS PROCESSES
• CUSTOMER
• FINANCIAL
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Dr. B.S. Powdwal
www.brilliantsolutionss.com
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7. The Balanced Scorecard Links Performance
Measures
• How do customers see us? (customer
perspective)
• What must we excel at? (internal perspective)
• Can we continue to improve and create value?
(innovation and learning perspective)
• How do we look to shareholders? (financial
perspective)
The balanced scorecard forces managers to focus
on the handful of measures that are most critical.
9/13/2020
Dr. B.S. Powdwal
www.brilliantsolutionss.com
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8. Stacking the Perspectives
• Should the 4 perspectives be linked to each
other?
• OR
• Should the 4 perspectives be independent of
each other?
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Dr. B.S. Powdwal
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9. .
• Traditionally, companies have judged their health by how
much money they make.
• Financial measures are definitely important, but they only
give you part of the picture. They focus on the short-term,
and you’re trying to build an organization to stand the test
of time.
• The name “balanced scorecard” comes from the idea of
looking at strategic measures in addition to traditional
financial measures to get a more “balanced” view of
performance.
• It’s this focus on both high-level strategy and low-level
measures that sets the balanced scorecard apart from
other performance management methodologies. It takes
your big, fuzzy strategic vision and breaks it down into
specific, actionable steps to take on a day-to-day basis.
9/13/2020
Dr. B.S. Powdwal
www.brilliantsolutionss.com
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10. Stacking the Perspectives
In the early years of the balanced scorecard, each of the four perspectives
were shown as being independent of the others. Over time, however, people
began to discover that these perspectives affect each other in surprising
ways. It turns out that the way we order them matters.
Modern balanced scorecards show how each perspective builds on the
previous one.
• If you train your employees and build a culture of information
sharing (Learning and Growth),
• they’ll make your company run more smoothly (Internal Business
Processes).
• A better running business takes better care of its customers
(Customer), and
• happy customers buy more of what you’re selling (Financial).
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Dr. B.S. Powdwal
www.brilliantsolutionss.com
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11. Perspective 1: Learning and Growth
• The learning and growth perspective looks at the
overall corporate culture.
– Are people aware of the latest industry trends?
– Is it easy for employees to collaborate and share
knowledge, or is your company a mess of tangled
bureaucracy?
– Does everyone have access to training and continuing
education opportunities?
• Technology plays a major role in learning and growth.
– Are people able to use the latest devices and software, or
are your archaic systems stuck running yesterday’s tech?
– What are you doing to make sure your organization is
staying ahead of your competition?
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Dr. B.S. Powdwal
www.brilliantsolutionss.com
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12. LEARNING AND GROWTH
• Give Three Examples of Learning & Growth
related to Super Speciality Hospitals
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13. LEARNING AND GROWTH
• 1. Use of Electronic Medical Records
• 2. Use of ICD Codes
• 3. Use of Tabs by Doctors and Nurses for
entering patient data namely –
– Daily progress notes during patient rounds
– Treatment details Prescribed by Doctors and given
by nurses, including Operation Notes
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Dr. B.S. Powdwal
www.brilliantsolutionss.com
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14. Strategic Objectives
• The next step in creating a balanced scorecard is choosing several
strategic objectives for each perspective. Up until now we’ve dealt
with large, vague concepts. This is where things get concrete. Some
example strategic objectives might be:
• Reduce Injuries
• Improve Call Times
• Increase Profits
• Choosing your strategic objectives is definitely more art than
science. It’s also one of those things that you can’t just outsource to
a consultant to figure out on their own. The people who know the
intimate details of your organization are very important here, so get
them involved early.
• Fortunately, we have some helpful guidelines. Every organization
will have different strategic objectives, but all good strategic
objectives are alike in several ways.
9/13/2020
Dr. B.S. Powdwal
www.brilliantsolutionss.com
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15. • Starts with a Verb
• All of your strategic objectives should begin with an action word. Improve, Reduce,
Increase, Optimize, Maximize, Minimize. These are all great words that involve
doing something.
• Endless
• We’re looking for strategic objectives that you’re going to care about for quite a
while. This isn’t about one-time events or deadlines. It’s about consistent
improvement. It’s “Improve Win Percentage” not “Win the 2020 Super Bowl.”
• Actionable
• There’s no use focusing on something that you can’t affect. For example, a lower
federal interest rate may help your business, but it’s not something you can
control. If it’s not actionable, keep it off your balanced scorecard.
• Measureable
• Some things are just too difficult to quantify. These things are bad candidates for
strategic objectives. If you can’t do a brand recognition survey, don’t choose
“Improve Brand Recognition” as a strategic objective.
9/13/2020
Dr. B.S. Powdwal
www.brilliantsolutionss.com
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16. • Putting it together
• After you’ve chosen several strategic
objectives for each perspective, you can layer
them on top of the perspectives like this.
• For the first time, we can begin to see how an
organization’s overall strategy is laid out.
9/13/2020
Dr. B.S. Powdwal
www.brilliantsolutionss.com
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19. Measures
• The final building blocks of a balanced scorecard are measures. Every strategic
objective should have one or two parameters that can be measured to determine
how it’s performing. These measures need goals and should be measured on a
regular schedule.
For example:
if a strategic objective were “Increase Acquisitions,” a good measure might be
“Number of New Acquisitions.”
If the strategic objective were “Increase Employee Expertise,” a good measure
might be “Total Departmental Training Hours.”
• It’s important to choose a very small number of measures to track. By limiting each
strategic objective to one or two measures, the manager can focus on the things
that matter most. Tracking too many measures creates chaos and often means that
nothing improves.
• MEASURES should be selected at the end, after arriving at the OVERALL
STRATEGY.
• If measures are chosen earlier in the process, before defining the OVERALL
STRATEGY one may end up measuring the wrong parameters.
9/13/2020
Dr. B.S. Powdwal
www.brilliantsolutionss.com
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22. Advantages of Balanced Score Card
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23. Advantages of Balanced Score Card - I
• First, the scorecard brings together, in a single
management report, many of the seemingly
disparate elements of a company’s
competitive agenda: becoming customer
oriented, shortening response time, improving
quality, emphasizing teamwork, reducing new
product launch times, and managing for the
long term.
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Dr. B.S. Powdwal
www.brilliantsolutionss.com
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24. Advantages of Balanced Score Card - II
• Second, the scorecard guards against suboptimization. By forcing
senior managers to consider all the important operational measures
together, the balanced scorecard lets them see whether
improvement in one area may have been achieved at the expense
of another. Even the best objective can be achieved badly.
Companies can reduce time to market, for example, in two very
different ways: by improving the management of new product
introductions or by releasing only products that are incrementally
different from existing products. Spending on setups can be cut
either by reducing setup times or by increasing batch sizes.
Similarly, production output and first-pass yields can rise, but the
increases may be due to a shift in the product mix to more
standard, easy-to-produce but lower-margin products.
9/13/2020
Dr. B.S. Powdwal
www.brilliantsolutionss.com
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25. Summary
Perspectives
A balanced scorecard is broken down into four Perspectives.
Strategic Objectives
Each perspective has several Strategic Objectives.
Strategy Map
A chart showing the relationships between strategic objectives is called a Strategy Map.
Measures
Each strategic objective has one or two Measures.
Ref: info@spiderstrategies.com
9/13/2020
Dr. B.S. Powdwal
www.brilliantsolutionss.com
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