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Balanced Scorecard

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This webinar on Balanced Scorecard was deliverd by Venkadesh Narayanan on behalf of IIBA® Chennai Chapter.

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Balanced Scorecard

  1. 1. BABOK® v3 Demystified Webinar Series Chapter: Chennai IIBA® Chapter Date & Time: 26-May-16 | 6:30 to 7:30 PM IST Topic: Balanced Scorecard Presenter: Venkadesh Narayanan BSME, MBA, CBAP®, PMI-PBA®, CPRE-FL, CBPP®, CSCP
  2. 2. 2 Insert Footer Thought Provoking Words “I often say that when you can measure what you are speaking about, and express it in numbers, you know something about it; but when you cannot measure it, when you cannot express it in numbers, your knowledge is of a meager and unsatisfactory kind. If you can not measure it, you can not improve it.” - Lord Kelvin, British Scientist
  3. 3. 3 Insert Footer Article Balanced Scorecard 1992
  4. 4. 4 Insert Footer Reference Book
  5. 5. 5 Insert Footer Balanced Scorecard • Strategic Planning and Management Tool • Measure Organizational Performance • Beyond the traditional financial measures • Provides a balanced view of an enterprise by implementing the strategic plan as an active framework of objectives and performance measures
  6. 6. 6 Insert Footer Why BSC? • How will the decisions you make today affect your business tomorrow? • That’s the most important question to a manager can ask. But to answer it, they aften rely on financial metrics which can overemphasize the short-term. To win the long-term you need to take a more balanced view. • That’s why Harvard Business School Professor Robert S.kaplan and consultant David P.Norton developed the Balanced Scorecard
  7. 7. 7 Insert Footer Why BSC? • In the industrial age, most of the assets of a firm were in property, plant, and equipment and the financial accounting system performed an adequate job of valuing those assets. • In the informational age, much of the value of the firm is embedded in innovative processes, customer relationship, and human resources. The financial accounting system is not so good at valuing such assets.
  8. 8. 8 Insert Footer Vision and Strategy vs BSC Top Middle Bottom Project Department Enterprise Insert Footer
  9. 9. 9 Insert Footer Purpose of BSC Business Model Org. Structure Business Process
  10. 10. 10 Insert Footer Four Perspectives of BSC • The Scorecard uses four perspectives to measure your company‘s health: • Financial Perspective • Are you doing well by your stakeholders? • Customer Perspective • Do they like your products and services? • Internal Perspective • Can you efficiently deliver what your customers want? • Learning and Growth Perspective • Can you continue to improve and create value?
  11. 11. 11 Insert Footer Balanced Scorecard
  12. 12. 12 Insert Footer Underlying Premises of BSC
  13. 13. 13 Insert Footer Objectives, Measures, Targets, Initiatives Postprandial glucose level: under 140 mg/dl Fasting between 70 to 100 mg/dl
  14. 14. 14 Insert Footer Lagging & Leading Indicators
  15. 15. 15 Insert Footer Financial Perspective • It’s financial goals were to • Survive • Succeed • Prosper • For assessment, it used • Cash flow • Quarterly sales growth • Market share • Return-on-Investment
  16. 16. 16 Insert Footer Customer Perspective • Its customer goals were to develop innovative, tailored products, to get them to market faster and to become a supplier of choice. • To measure success, managers used percentage of sales from new products, on-time delivery rates and popularity with key customers.
  17. 17. 17 Insert Footer Internal Perspective • Looking internally, the company prioritized goals like excellent manufacturing, producing new designs, and introducing new products and again developed operational measures for each goal.
  18. 18. 18 Insert Footer Learning and Growth Perspective • Last, for its learning and growth goals, it decided to focus on developing new products, rather than improving existing ones. • The company found that learning and innovation lead to better competencies and processes, which in turn boosted customer satisfaction and ultimately generated better stakeholder returns.
  19. 19. 19 Insert Footer Strategy Maps
  20. 20. 20 Insert Footer Strengths • Facilitates holistic and balanced planning and thinking • Short-, medium-, and long-term goals can be harmonized into programs with incremental success measures • Strategic, tactical, and operational teams are more easily aligned in their work • Encourages forward thinking and competitiveness
  21. 21. 21 Insert Footer Limitations • A lack of a clear strategy makes aligning the dimensions difficult • Can be seen as the single tool for strategic planning rather than just one tool to be used in a suite of strategic planning tools • Can be misinterpreted as a replacement for strategic planning, execution, and measurement
  22. 22. 22 Insert Footer About Fhyzics Fhyzics, a leader in Business Analysis Services and Training, is an Endorsed Education Provider [EEPTM] of International Institute of Business Analysis [IIBA®], Canada. www.fhyzics.com www.bacourse.com For more details about our course, please speak to Bharathi at +91-900-305-9000
  23. 23. 23 Insert Footer Try our Online BA Course 150+ videos as in a classroom by Mr. Venkadesh Narayanan www.bacourse.com For questions speak to Bharathi at +91-900-305-9000 Compatible in PC, Tablet, iOS and Android devices https://fhyzicsbc.litmos.com/account/Login Username: cs@fhyzics.com Password: bacourse
  24. 24. 24 Insert Footer Q & A ?
  25. 25. 25 Insert Footer Thank You Webinar Platform Compliments from Fhyzics Business Consultants Pvt. Ltd. Presented By Mr. Venkadesh Narayanan, BSME, MBA, CBAP®, PMI-PBA®, CPRE-FL, CBPP® , CSCP Principal Consultant Former Indian Civil Servant [IRAS 2001 Batch]

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