Balance scorecard kpi


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Balance scorecard kpi

  1. 1. Concept and ExecutionBalanced Scorecard (BSC)
  2. 2. Balanced ScorecardConcept and Definition
  3. 3. Balanced Scorecard is..Management system• Clarifies mission & vision• Translates mission & vision intomeasurable and actionablemeasures• Helps provide feedback andmeaningful information• Pioneered by Robert Kaplanand David Norton of HarvardBusiness School in 1992
  4. 4. Suggested Strategy Focus in BSC Framework
  5. 5. Advantages of Having Balanced ScorecardStrategic AlignmentTransparencyManageable PerformanceClarity of Management Direction
  6. 6. Why the name Balanced Scorecard?Signifies balance between• Short and long-term objectives• Financial and Non-Financial measures• Lagging and Leading indicators• Internal and External Perspectives
  7. 7. Balanced Scorecards 4 Perspectives
  8. 8. Balanced Scorecards Measurement Method
  9. 9. PLANDOCHECKACTBSCCycle ofa SmallBusiness
  10. 10. Balanced ScorecardExecution Framework
  11. 11. BSC Execution Stages
  12. 12. BSC Execution Stages1. Develop the Strategy2. Plan the Strategy3. Align the Organization4. Plan the Operations5. Monitor (Execution) and Learn6. Test and Adapt
  13. 13. 1. Develop the Strategy1. Clarify mission, vision, values• What business are we in and why?2. Conduct strategic analysis ofkey issues• What are the key issues?3. Formulate strategy to compete• How can we best compete?
  14. 14. 2. Plan the Strategy1. Create strategy maps• How do we define our strategy?2. Select and measures and targets• How do we measure our plan / objectives?3. Choose strategic initiatives• What action programs does our strategy need?4. Establish STRATEX• How do we fund our initiatives?5. Create theme project teams• Who will lead the execution of the strategy?
  15. 15. Strategic Initiatives (example)
  16. 16. 3. Align the Organization1. Align business units• How do we ensure that all units are onthe same page?2. Align support units• How do we align support units withbusiness units and corporatestrategies?3. Align employees• How do we motivate employees tohelp us execute the strategy?
  17. 17. 4. Plan the Operations1. Improve key processes• Which process improvements arecritical for executing the strategy?2. Develop resource capacity plan• How do we link strategy with operatingplans, sales forecast and budgets?
  18. 18. 5. Monitor and Learn1. Hold operational review meetings• Are our operations under control?2. Hold operational review meetings• Are we executing our strategywell?
  19. 19. 6. Test and Adapt1. Hold a review meeting for the strategytesting and adapting• Is our strategy working?Update the plans and scorecard for thenext cycle
  20. 20. References:• "Balanced Scorecard",• "Performance Measurement with Balanced Scorecard",Stefano Biazzo and Patricia Gareno, Springer - Verlag BerlinHeidelberg 2012• "Execution Premium", Robert S. Kaplan and David P.Norton, Harvard Business School Publishing, 2008