balanced score card


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  • Beginning course details and/or books/materials needed for a class/project.
  • A schedule design for optional periods of time/objectives.
  • Conclusion to course, lecture, et al.
  • Conclusion to course, lecture, et al.
  • Conclusion to course, lecture, et al.
  • Conclusion to course, lecture, et al.
  • Conclusion to course, lecture, et al.
  • Conclusion to course, lecture, et al.
  • Conclusion to course, lecture, et al.
  • Conclusion to course, lecture, et al.
  • Conclusion to course, lecture, et al.
  • Conclusion to course, lecture, et al.
  • Conclusion to course, lecture, et al.
  • Conclusion to course, lecture, et al.
  • Conclusion to course, lecture, et al.
  • Conclusion to course, lecture, et al.
  • Conclusion to course, lecture, et al.
  • Conclusion to course, lecture, et al.
  • balanced score card

    1. 1. THE BALANCEDSCORECARD (BSC)If you can measure it, you can manage it.
    2. 2. What, Why, When, Where, Who, How > scorecardThere is are 5thW & H for the scorecard conceptand when finish it I promise we will learn what is thescorecard.
    3. 3. Phase 1:What is the balanced scorecard (BSC)?• The Balanced Scorecard (BSC) is a strategic performancemanagement tool - a semi-standard structured report, supported by provendesign methods and automation tools that can be used by managers to keeptrack of the execution of activities by the staff within their control and tomonitor the consequences arising from these actions.Kaplan and Norton are seen the creators of the balanced scorecard concept &they assert four steps as being part of the balanced scorecard design process:• Translating the vision into operational goals;• Communicating the vision and link it to individual performance;• Business planning; index setting• Feedback and learning, and adjusting the strategy accordingly
    4. 4. Balance scorecard measurementsDesign of a Balanced Scorecard ultimately is about theidentification of a small number of financial and non-financialmeasures and attaching targets to them, so that when they arereviewed it is possible to determine whether current performancemeets expectationsBalance scorecard has four financial and non- financialperspectives & measurements• Learning and growth.• Internal business process.• Customers‟ views.• Financial: how does share holder see us?
    5. 5. If we don’t measure ……• How do you know where to improve?• How do you know where to allocate or re-allocate money andpeople?• How do you know how you compare with others?• How do you know whether you are improving or declining?• How do you know whether or which programs, methods, oremployees are producing results that are cost effective andefficient?
    6. 6. 1st The Learning & GrowthToachieveourstrategy,howmustourorganizationlearnandimprove?This perspective includes employee training and corporatecultural attitudes related to both individual and corporate self-improvement.From the organization side, people are the main resource. So, it isbecoming necessary for knowledge workers to be in a continuouslearning mode. Metrics can be put into place to guide managersin focusing training funds where they can help the most. In anycase, learning and growth constitute the essential foundation forsuccess of any organization.Kaplan and Norton emphasize that learning is more thantraining„ so we have t learn what should we train our employees.
    7. 7. 2nd The Business ProcessTo satisfy our customers,which process must we excel at?This perspective refers to internal business processes. Metricsbased on this perspective allow the managers to know how welltheir business is running, and whether its products and servicesconform to customer requirements (the mission). These metricshave to be carefully designed by those who know these processesmost intimately; with our unique missions these are notsomething that can be developed by outside consultants.
    8. 8. 3rd The CustomerTo achieve our vision, how must we look to our customers?Recent management philosophy has shown an increasingrealization of the importance of customer focus and customersatisfaction in any business. These are leading indicators: ifcustomers are not satisfied, they will eventually find othersuppliers that will meet their needs. Poor performance from thisperspective is thus a leading indicator of future decline, eventhough the current financial picture may look good.In developing metrics for satisfaction, customers should beanalyzed in terms of kinds of customers and the kinds ofprocesses for which we are providing a product or service tothose customer groups.
    9. 9. 4th The FinancialIf we succeed, how will we look to our shareholder?Kaplan and Norton do not disregard the traditional need forfinancial data. Timely and accurate funding data will always be apriority, and managers will do whatever necessary to provide it.In fact, often there is more than enough handling and processingof financial data. With the implementation of a corporatedatabase, it is hoped that more of the processing can becentralized and automated. But the point is that the currentemphasis on financials leads to the "unbalanced" situation withregard to other perspectives. There is perhaps a need to includeadditional financial-related data, such as risk assessment andcost-benefit data, in this category.
    10. 10. Balance scorecard measurements map.
    11. 11. Phase 2:Why we should use the balanced scorecard(BSC)?Why does business need balance scorecard?• Improve organizations performance by measuring what ismatters.• Increase the focus on the strategy and goals.• Set priorities regarding the projects.• Get more communications between the vision and the strategy.• Focus on the drivers.It also alert mangers to areas that performance is needed to beimproved & encourage focusing their attention to these areas.
    12. 12. “Having a trouble in your strategy? Then map it.”by Kaplan & Norton.Studies have shown that organizations which are leading in theirindustry, stellar financial performers, and adept changeleaders, distinguish themselves by the following characteristics:• Linking strategic objectives and measure to operationalobjectives and measures.• Having agreed-upon measure that managers understand.• Balancing financial (logging) and non-financial (real time orleading) measures.• Updating their strategic scorecard regulatory and clearlycommunicate measures.• Progress & challenge to all employees in the organization.
    13. 13. Phase 3:When we use the balanced scorecard(BSC)?• If we want to translate the missions and strategy into a clearobjectives.• If we need a full manage & control the organization.• To clarify what if the current performance meets what theorganization planed for.
    14. 14. Phase 4:Where the balanced scorecard (BSC)is used?More than half of major companies in the US, Europe and Asiaare using Balanced Scorecard approaches. The official figuresvary slightly but the Gartner Group suggests that over 50% oflarge US firms have adopted the BSC. A recent global study byBain & Co finds that the Balanced Scorecard is one of the top-tenmost widely used management tools around the world. Thewidest use of the BSC approach has traditionally been in theUS, the UK and Northern Europe, but there is very strong growthin Balanced Scorecard adoption in South America, the MiddleEast and Asia.
    15. 15. Phase 5:Who should use the balancedscorecard (BSC)?• All firms require improving its performance and specify itsframe work that is translate the visions & strategies into acoherent set for performance measures.• All firms want to achieve Better Strategic Planning, ImprovedStrategy Communication & Execution, Better ManagementInformation, Improved Performance Reporting, Better StrategicAlignment, and Better Organizational Alignment.
    16. 16. Phase 6:How many benefits of usingthe balanced scorecard (BSC)?Managing employee or system performance facilitates theeffective delivery of strategic and operational goals. There is aclear and immediate correlation between using performancemanagement programs or software and improved business andorganizational results.For employee performance management, using integratedsoftware, rather than a spreadsheet based recording system, maydeliver a significant return on investment through a range ofdirect and indirect sales benefits, operational efficiency benefitsand by unlocking the latent potential in every employees workday (i.e. the time they spend not actually doing their job).
    17. 17. Benefits may include:First: Direct financial.• Gain grow sales.• Reduce costs in the organization.• Stop project overruns.• Aligns the organization directly behind the CEOs goals.• Decreases the time it takes to create strategic or operationalchanges by communicating the changes through a new setof goals.
    18. 18. Second: Motivated workforce.• Optimizes incentive plans to specific goals for overachievement, not just business as usual.• Improves employee engagement because everyoneunderstands how they are directly contributing to theorganizations high level goals.• Create transparency in achievement of goals.• High confidence in bonus payment process.• Professional development programs are better aligneddirectly to achieving business level goals.
    19. 19. Third: Improved management control.• Flexible, responsive to management needs.• Displays data relationships.• Helps audit / comply with legislative requirement.• Simplifies communication of strategic goals scenarioplanning.• Provides well documented and communicatedprocess documentation.
    20. 20. References, external links & Sources• The balance scorecard for Kaplan and David P. Norton.• Balanced Scorecard by Yodhia Antariksa.• Scorecard Training Module by Frank G. Adler, Ph.D.• 2GC Balanced Scorecard Usage Survey, "FAQ Answer: What is the Balanced Scorecard?“• "The Balanced Scorecard - Measures that Drive Performance", Harvard Business Review, Feb. 1992.• Kaplan R S and Norton D P (1992) "The Balanced Scorecard: measures that drive performance", Harvard Business Review Jan – Feb pp. 71–80.• Kaplan R S and Norton D P (1993) "Putting the Balanced Scorecard to Work", Harvard Business Review Sep – Oct pp2–16.• Kaplan R S and Klein N (1995) "Chemical Bank: Implementing the Balanced Scorecard" Harvard Business School Press• Kaplan R S and Norton D P (1996) "Using the Balanced Scorecard as a strategic management system", Harvard Business Review Jan – Febpp. 75–85.• Performance managements, balances scorecard and performance measurements and Building & Implementing a Balanced Scorecard• Kaplan R S and Norton D P (1996) "Balanced Scorecard: Translating Strategy into Action" Harvard Business School Press• Kaplan, R. S., & Norton, D. P. (2004). Measuring the strategic readiness of intangible assets. Harvard Business Review, 82(2): 52-63.• Kaplan, R. S., & Norton, D. P. (2004). Strategy maps: Converting intangible assets into tangible outcomes. Boston: Harvard Business School Press.• A Handbook for Measuring Employee Performance, by the US Office of Personnel Management.
    21. 21. A study case• N.B. For media rights and obligations the company name changed to X Bank.Bank profile:• X bank is a British multinational banking and financial services companyheadquartered in London, United Kingdom. It has operations in over 50 countriesand territories across Africa, Asia, Europe, North America and South America andaround 50 million customers• Business Banking, the Corporate and Investment Banking and Wealth andInvestment are industries X bank provide.Vision• To be the preferred provider of financial services and products, servicing theirstakeholders, being their: Customers, Employees, Shareholders, Government andSociety.Purpose• To enable their customers to achieve their ambitions and by doing so deliversuperior benefits to all stakeholders.
    22. 22. MissionTo ensure :• Put the customers at the center of everything they do.• Differentiate through superior service and competitive products.• Continuously innovate.• Are brilliant at execution.• Have the best people and engage them in their business.Values• Value their people and threat them with fairness.• Demonstrate integrity in all their actions.• Strive to exceed the needs of their customers.• Take responsibility for the quality of their work• Display leadership in all they do
    23. 23. X bank BSC.• Have a history of building success through innovation and thisapproach is still going strong today. Inventing superior products andservices takes fresh thinking, creative energy and team work. Thismakes all of our businesses vibrant and engaging places to work.• Regardless of where they are located or which business area theirpeople are working in, there are key attributes that they look for in anyindividual we recruit. These derive from their five guiding principles:1. Winning together – A willingness to do what’s right for Barclays, ourteams and our colleagues in order to achieve collective andindividual success.2. Best people – The ability to develop individually and to help thosearound you.3. Customer and client focus – The ability to understand and deliverwhat our customers and clients want and need.4. Pioneering – The capacity to innovate and drive idea generation toimprove our operational excellence.5. Trusted – Acting with the highest level of integrity and being able totake responsibility for decisions and actions.
    24. 24. • We can see that they translate their vision and strategiesinto implementations and working through the BSC fourperspectives.• Learning and growth.(best people & winning together).• Internal process.(Pioneering).• Customer.(Customer and client focus).• Financial.(Trusted & winning together).
    25. 25. To achieve their vision they start setting a strategyfor learning and growthperspective.A) Built the winning team:• Choosing well the joining staff and sort their capabilities to matchevery role profile qualifications needed.• Coaching and training through internal courses or externalprofessional centers to create a winning team who able to give valueand make difference.• Updating salaries and promotions criteria and match it with the marketand to make into consideration the allowance through medicalinsurance budgets, social insurance, bonus, profitshare, transportations, benefits package..etc.• Checking the outsourcing employees percentage from the total staff.• An annual serious PD and to be checked quarterly.• Surveys asking them regarding their satisfaction from their salariesand training had.
    26. 26. B)Creativity and performance quality.• Enable employees suggestion and share with them the vision &strategy.• Setting a productivity tools and measurements.• Capacity plans and KPI (key performance indicator).• Sharing ideas and making a hearing sessions between the front officeemployees and the back office staff to reach their both targetsmoothly.• A monthly and quarterly rewards for highly performance and creativethinking.• Making a rotation between the job role profiles.C) results:• Reduce internal process TAT (turnaround time).• Cost reduction and find ways to increase the income.• High performance & quality.• Employees satisfactions.• Achieving most of organization objectives.• Decreasing the turnover.
    27. 27. Keymeasures2010 results 2011 targets 2011 resultsTurnover rate 8.5% 5% 4.8%Employeesatisfactions60% >80% 85%Cost reduction -1.5M 3M 3.2MInternalprocess TAT-20& 25% 25%Performanceand quality70% 95% 97%
    28. 28. According to this model of using the learning and growthperspective as a performance measurement, we can saythat it makes a lot of measurements homework as it drawthe attention to the staff who have the capabilities to makethe things done.Going through training / coaching and developing theirskills to share their ideas beside reaching their satisfactionsas the same attention as the organization’s objectives,make achieving its vision much easier.