Balanced_sample

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Balanced_sample

  1. 1. The Balanced Scorecard Superfactory Excellence Program™ www.superfactory.com
  2. 2. Outline <ul><li>Introduction to the Balanced Scorecard </li></ul><ul><ul><li>What is it? </li></ul></ul><ul><ul><li>Why do it? </li></ul></ul><ul><li>Balanced Scorecard Fundamentals </li></ul><ul><ul><li>The Four Perspectives </li></ul></ul><ul><ul><li>Measures, Targets and Initiatives </li></ul></ul><ul><ul><li>Roles and Responsibilities </li></ul></ul><ul><li>Using the Balanced Scorecard as a Management System </li></ul><ul><li>Issues and Challenges with the Balanced Scorecard </li></ul><ul><li>Implementing the Balanced Scorecard </li></ul>
  3. 3. Strategy vs Operational Excellence <ul><li>Strategy creates fit among a firms activities </li></ul><ul><li>The success of strategy depends on doing many things well, not just a few </li></ul><ul><li>All things that are done well must operate within a close knit system </li></ul><ul><li>If there is no fit, there is no strategy </li></ul><ul><li>Without fit management becomes the search for operational excellence </li></ul><ul><li>Improving operational excellence is necessary but it is not the same as strategy </li></ul><ul><li>Managing fit is “strategic management” </li></ul>
  4. 4. The Increasing Sophistication of Corporate Performance Measurement Time Sophistication of Measurement Systems Operating measures Traditional accounting measures Quality-related operating measures Activity-based costing Balanced scorecard Economic value added Value-linked measurements for business strategy, stakeholder needs, process attributes and the business environment
  5. 5. The Balanced Scorecard <ul><li>Ties performance measures to corporate strategy </li></ul><ul><li>“Balance” includes </li></ul><ul><ul><li>short & long term objectives </li></ul></ul><ul><ul><li>financial and non-financial measures </li></ul></ul><ul><ul><li>external & internal measures </li></ul></ul><ul><ul><li>various perspectives </li></ul></ul><ul><li>Purposes of the balanced scorecard include </li></ul><ul><ul><li>clarify & translate vision & strategy </li></ul></ul><ul><ul><li>communicate & link strategic objectives & measures </li></ul></ul><ul><ul><li>plan, set targets & align strategic initiatives </li></ul></ul><ul><ul><li>enhance strategic feedback & learning </li></ul></ul>
  6. 6. The Balanced Scorecard and The Big Picture <ul><li>Activity Based Costing </li></ul><ul><li>Economic Value Added </li></ul><ul><li>Forecasting </li></ul><ul><li>Benchmarking </li></ul><ul><li>Market Research </li></ul><ul><li>Best Practices </li></ul><ul><li>Six Sigma </li></ul><ul><li>Statistical Process Control </li></ul><ul><li>Reengineering </li></ul><ul><li>ISO 9000 </li></ul><ul><li>Total Quality Management </li></ul><ul><li>Empowerment </li></ul><ul><li>Learning Organization </li></ul><ul><li>Self-Directed Work Teams </li></ul><ul><li>Change Management </li></ul>
  7. 7. Potential Problems with the BSC <ul><li>Lack of time for the decision makers to focus on strategy </li></ul><ul><ul><li>Having strategy sessions on a continuous basis is difficult </li></ul></ul><ul><ul><li>Running the business seems to come first </li></ul></ul><ul><li>Confusion between operational efficiency and strategy </li></ul><ul><ul><li>This is a continual problem </li></ul></ul><ul><ul><li>Always ask “do I have options?” if so then it’s strategy </li></ul></ul><ul><li>Difficulty in creating well defined metrics and connecting them to deliverables </li></ul><ul><ul><li>Scalar metrics with defined “units of measure” </li></ul></ul><ul><li>Cascading the objectives down to the staff that can deliver the results </li></ul><ul><ul><li>This is the hardest and where there is the most resistance </li></ul></ul>

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