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Balanced scorecard overview slides


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The Performance Management and Balanced Scorecard overview presentation is a comprehensive walkthrough of what Performance Management and Balanced Scorecard is and how you implement it at your company or your customer company. The nice looking slides are easy to incorporate into your own presentation and are designed by professionals to both give you an inside into the subject and give a professional presentation to your stakeholders. The PowerPoint slides are:

Slide 1: What is The Balanced Scorecard

Slide 2: The barriers to implementing Strategy

Slide 3: The Balanced Scorecard 4 perspectives

Slide 4: Rationale for the Balanced Scorecard

Slide 5: Signs that you may need a new performance measurement system

Slide 6: Balanced Scorecard Team Roles and Responsibilities

Slide 7: Balanced Scorecard Project Plan and Timeline

Slide 8: A simplified Communication Plan for your Balanced Scorecard project

Slide 9: Translating with the Balanced Scorecard

Slide 10: The Balanced Scorecard should contain a mix of lag and lead measures of performance

Slide 11: Cause-and-effect linkages in the Balanced Scorecard

Slide 12: Mapping Initiatives to Objectives

Slide 13: “Cascading” the Balanced Scorecard

Slide 14: The Cascading Process

Slide 15: Linking the Balanced Scorecard to Budgeting

Slide 16: Public-Sector Balanced Scorecard

Slide 17: Commonly used Financial Measures

Slide 18: A sample of customer Measures

Slide 19: Internal Process Measures

Slide 20: Employee Learning and Growth Measures

Published in: Business

Balanced scorecard overview slides

  1. 1. PerformanceManagement &Balanced ScorecardOverview
  2. 2. Buy the slides 2
  3. 3. What is The Balanced Scorecard“Balanced scorecard methodology is a management tooldesigned to translate an organizations mission statement andoverall business strategy into specific, quantifiable goals and tomonitor the organizations performance in terms of achievingthese goals.” 3
  4. 4. The barriers to implementing Strategy Only 10% of organizations execute their strategy Barriers to Strategy Execution Vision Barrier People Barrier Management Ressource Only 5% of the Only 25% of Barrier Barrier workforce managers have 85% of executive 60% of teams spend less understands the incentives linked than one hour per organizations strategy to strategy month discussing don’t link strategy budgets 4
  5. 5. The Balanced Scorecard 4 perspectives Financial Objectives Measures Targets ”How do we look to shareholders ?” Customer Internal Business Process Objectives Measures Targets Vision Objectives Measures Targets”How do our and ”What mustcustomers we excelsee us?” Strategy at?” Employee Learning and Growth Objectives Measures Targets ”How can we continue to improve and create value?” 5
  6. 6. Rationale for the Balanced 6
  7. 7. Signs that you may need a new performancemeasurement system Performance is acceptable on all dimensions except profit: A focus on quality and other measures has led to improvements in isolated areas, but not profits. Customers don’t buy even when prices are competitive: The problem may lie in your relative performance to competitors. No one notices when performance measurement reports aren’t produced: Data in the reports no longer contains meaningful information for decision makers. Managers spend significant time debating the meaning of the measures: Measures must be clearly linked to strategic objectives. Share price is lethargic despite solid financial performance: Wall street needs to learn that you are investing in long-term value creating activities. You haven’t changed your measures in a long time: Performance measures should be dynamic based on the organization’s strategic direction. Time for a new performance You have recently changed your corporate strategy: All measures should link measurement back to your strategy. system? Source: Michael R. Vitale and Sarah C. Mavrinac 7
  8. 8. Balanced Scorecard Team Roles andResponsibilities Role Responsibilities Executive sponsor • Assumes ownership for the Balanced Scorecard • Provides background information to the team on strategy and methodology • Maintains communication with senior management • Commits resources (both human and financial) to the team • Provides support and enthusiasm for the Balanced Scorecard throughout the organizatin Balanced Scorecard • Coordinates meetings, plans, tracks, and reports team results to all audiences champion • Provides thought leadership on the Balanced Scorecard methodology to the team • Provides feedback to the executive sponsor and senior management • Facilitates the development of an effective team through coaching and support Team members • Provide expert knowledge of business unit or functional operations • Inform and influence their respective senior executives • Act as Balanced Scorecard ambassadors within their unit or department • Act in the best interests of the business as a whole Organizational change • Increases awareness of organizational change issues expert • Investigates change-related issues affecting the Balanced Scorecard project • Works with the team to produce solutions mitigating change related risks 8
  9. 9. Balanced Scorecard Project Plan and 9
  10. 10. A simplified Communication Plan for your Balanced Scorecard projectAudience Purposes Frequency Delivery Vehicle CommunicatorExecutive team • Gain commitment Biweekly Direct contact Executive • Remove obstacles sponsor • Report progress • Prevent surpricesManagement • Convey purpose Biweekly • E-mail Champion / • Explain concepts • Management meetings team members • Report progress • Articles • Gain commitmentAll employess • Convey purpose Monthly • E-mail Project team • Introduce concepts • Newsletters members • Eliminate • Town-hall meetings misconceptions • Report progressProject team • Track progress Weekly • Team meeting Champion • Assign tasks • Status memos • Review expectations 10
  11. 11. Translating with the Balanced Scorecard Mission and Core ValuesOur desired future stateDifferentiating activitiesWhat we must do well in order Objectivesto implement our strategy Employee Learning Financial Customer Internal Processes and GrowthHow strategic Measuressuccess ismeasured and Financial Customer Internal Processes Employee Learning and Growthtracked 11
  12. 12. The Balanced Scorecard should contain a mix of lag and lead measures of performance Lag Lead Definition Measures focusing on Measures that ”drive” or lead result at the end of a time to the performance of lag period, normally measures, normally characterizing historical measuring intermediate performance processes and activities Examples • Market share • Hours spent with • Sales customers • Employee satisfaction • Proposals written • Absenteeism Advantages Normally easy to identify Predictive in nature, and allow and capture the organization to make adjustments based on results Issues Historical in nature and do May prove difficult to identify not reflect current and capture, often new activities, lack predictive measures with no history at power the 12
  13. 13. Cause-and-effect linkages in the BalancedScorecard 13
  14. 14. Mapping Initiatives to 14
  15. 15. “Cascading” the Balanced Scorecard “Cascading refers to the process of developing Balanced Scorecards at each and every level of your organization. These Scorecards align with your organization’s highest-level Scorecard by identifying the strategic objectives and measures lower-level departments and groups will use to track their progress in contributing to overall company goals. While some of the measures used may be the same throughout the entire organization, in most cases the lower-level Scorecards will include measures reflecting the specific opportunities and challenges faced at that level.” Paul R. 15
  16. 16. The Cascading Process Mission, Values, Vision Strategy Financial Customer Internal Processes Employee L & G Objectives Measures Initiatives Objectives Measures Initiatives Objectives Measures Initiatives Objectives Measures Initiatives Financial Customer Internal Processes Employee L & G Objectives Measures Initiatives Objectives Measures Initiatives Objectives Measures Initiatives Objectives Measures Initiatives Financial Customer Internal Processes Employee L & G Objectives Measures Initiatives Objectives Measures Initiatives Objectives Measures Initiatives Objectives Measures Initiatives Team and Personal Balanced 16
  17. 17. Linking the Balanced Scorecard to Budgeting Internal Financial Perspective Process Perspective Mission, Values, Vision Objectives, Measures and Strategy and Targets Employee Customer Learning Perspective and Growth Perspective Balanced Scorecard Balanced Scorecard Drive Budgets Cascaded Balanced Scorecards Operating and Capital Budgets Investments necessary to support the achievement of Business units and departments develop Balanced Balanced Scorecard targets across the organization drive the Scorecards based on influencing high-level objectives. budgeting process. Source: Paul R. 17
  18. 18. Public-Sector Balanced Scorecard Mission Customer Who do we define as our customer? How do we create value for our customer? Customer Internal Process Who do we define as To satisfy customers our customer? How do while meeting we create value for our Strategy budgetary constraints, customer? at what business processes must we excel? Employee Learning and Growth How do we enable ourselves to grow and change, meeting ongoing legislative and citizen demands? 18
  19. 19. Commonly used Financial Measures Commonly used Financial Measures • Total assets • Value added per employee • Total assets per employee • Compound growth rate • Profits as a % of total assets • Dividends • Return on net assets • Market value • Return on total assets • Share price • Revenues / total assets • Shareholder mix • Gross margin • Shareholder loyalty • Net income • Cash flow • Profit as a % of sales • Total costs • Profit per employee • Credit rating • Revenue • Debt • Revenue from new products • Debt to equity • Revenue per employee • Times interest earned • Return on equity (ROE) • Days sales in receivables • Return on capital employed (ROCE) • Accounts receivable turnover • Return on investment (ROI) • Days in payables • Economic value added (EVA) • Days in inventory • Market value added (MVA) • Inventory turnover 19
  20. 20. A sample of customer Measures Customer Measures • Customer satisfaction • Win rate (sales closed / sales contacts) • Customer loyalty • Customer visits to the company • Market share • Hours spent with customers • Customer complaints • Marketing cost as a percentage of sales • Complaints resolved on first contact • Number of ads placed • Return rates • Number of proposals made • Response time per customer request • Brand recognition • Direct price • Response rate • Price relative to competition • Number of trade shows attended • Total cost to customer • Sales volume • Average duration of customer relationship • Share of target customer size • Customer lost • Sales per channel • Customer retention • 20
  21. 21. Internal Process Measures Internal Process Measures • Average cost per transaction • Breakeven time • On-time delivery • Cycle time improvement • Average lead time • Continuous improvement • Inventory turnover • Warranty claims • Environmental emissions • Lead user identification • Research and development expenses • Products and services in the pipeline • Community involvement • Internal rate of return on new projects • Patents pending • Waste reduction • Ratio of new products to total offerings • Space utilization • Stock outs • Downtime • Labor utilization rates • Planning accuracy • Response time to customer requests • Time to market of new products/services • Defect percentage • New products introduced • Rework • Customer database availability • Number of positive media 21
  22. 22. Employee Learning and Growth Measures Employee Learning and Growth • Employee participation in professional or • Quality of work environment trade associations • Training investment per customer • Employee productivity • Average years of service • Number of Scorecards produced • Percentage of employees with advanced • Health promotion degrees • Number of cross-trained employees • Training hours • Absenteeism • Personal goal achievement • Turnover rate • Timely completion of performance appraisals • Employee satisfaction • Leadership development • Participation in stock ownership plans • Communication planning • Lost time accidents • Reportable accidents • Value added per employee • Percentage of employees with computers • Motivation index • Strategic information ratio • Outstanding number of applications for • Cross-functional assignments employment • Diversity rates • Knowledge management • Empowerment index -number of managers • Ethics 22
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