Application of Balance Scorecard

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  • Easy and clear understanding of the application of BSC. Good as an understanding tool for those new to BSC.
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  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Quick review of the initiative mission Objective: process improvement to better achieve business goals and objectives Measuring processes and products, not people However, we will be measuring people’s work Use business and organizational goals to drive metrics Iterative process. Expect it to evolve and change
  • Application of Balance Scorecard

    1. 1. Application of Balanced Scorecard In Process Industry: A Case Study of Agro Base Company in Developing Country <br />Prepared By:<br /> Umar Farooq <br />
    2. 2. Why Balanced Scorecard<br /><ul><li>95% of typical workforcedoesnotunderstanditsorganizations’ strategy
    3. 3. 90% of organizations fail to execute their strategies successfully
    4. 4. 70% of organizations do not link middle management incentives to strategy
    5. 5. 85% of Mgt teams Spends less than 1 hr per month On strategy issues
    6. 6. 60% Of Org Don’t link Strategy & budgets
    7. 7. 92% of orgs Do not report On lead indicators</li></li></ul><li>Balanced Scorecard<br />A balance scorecard translates an organization’s <br />mission and strategy into set of performance<br /> measures that provide the framework for <br />implementing its strategy<br />
    8. 8. Monsanto Introduction:<br /><ul><li> Monsanto is US (St. Louise Missouri) base multinational agriculture organization.
    9. 9. Established in 1901 Start with Agro chemical business.
    10. 10. Monsanto came to Pakistan on October 01, 1998
    11. 11. Strong core business in Pakistan based on DEKALB and Asgrow Corn seed brands
    12. 12. First agriculture company in Pakistan to invest in all essential components of seed business
    13. 13. Certified OHSAS 18001, ISO 14001, ISO 9001</li></li></ul><li>Mission Statement of Monsanto:<br />“ We apply innovation and technology to help farmers around the world produce more while conserving more. We help farmers grow yield sustainably so they can be successful, produce healthier foods, better animal feeds and more fiber, while also reducing agriculture's impact on our environment “<br />
    14. 14. Monsanto Stewardship:<br /><ul><li> Financial stewardship to ensure that financial standards are met;
    15. 15. Environmental, safety and health stewardship to protect the safety of our people, communities and the environment;
    16. 16. And societal engagement to consider whether we are doing the right things and doing them right</li></li></ul><li>New Vision for Agriculture<br />A new vision for agriculture built upon three pillars. These pillars are advanced breeding, biotechnology, and improved agronomic practices.  When all three components are fully integrated we can provide the best tools and technology to farmers so that they can meet the goals of feeding, clothing, and fueling the world<br />
    17. 17. Product of Monsanto:<br />Hybrid Corn Seed <br />Spring & Autumn Variety:<br />Corn 919, Corn 5219, Corn Opener <br />Corn 6142, Corn 6525<br />BT Cotton: <br />Chemistry:<br />Roundup: Herbicides <br />Vegetable Seeds:<br />Tomato, Cucumber, Green Chili, Cabbage, <br />Watermelon and many other <br />
    18. 18. Process Detail of Corn Seed:<br />Ear Corn<br />Cleaning<br />Chemical<br /> treatment<br />Intake<br />Packing<br />Drying<br />Gravity <br />Separating<br />Sorting<br />Temporary <br />Warehouse<br />Shelling<br />Drying/Shelling Process<br />Conditioning Process<br />Packing Process<br />
    19. 19. Application of Balanced Scorecard<br />
    20. 20. 4 Perspectives in Balanced Scorecard<br />The Strategy<br />Financial Perspective<br />If we succeed, how will we look to our shareholders?<br />Customer Perspective<br />To achieve our vision, how must we look to our customers?<br />Internal Perspective<br />To satisfy our customers, which processes must we excel at?<br />Learning & Growth Perspective<br />To achieve our vision, how must our organization learn and improve?<br />
    21. 21. BSC Implementation Steps:<br />
    22. 22. Strategy Map of Monsanto<br />Enhance Long-term Shareholder Value<br />Improve <br />Cost Efficiency<br />Increase Revenue Growth<br />Financial<br />Customer Satisfaction & Retention<br />Enhance <br />Brand Image<br />Build High Performance Products<br />Customer<br />Drive Demand through Customer Relation Management<br />Achieve Operational Excellence<br />Implement Good<br />Environmental Policy<br />Manage Dramatic Growth through Innovation<br />Internal Process<br />Learning & Growth<br />Power Delegation <br />Build Learning <br />Culture/Employee Satisfaction<br />Expand Capabilities with Technology<br />
    23. 23. Execution<br />Development Projects, Activities, etc.<br />Quality Projects, Activities, etc.<br />– 1 –<br />Identify Initiatives<br />Corporate Projects, Activities, etc.<br />Marketing Projects, Activities, etc.<br />FinancialPerspective<br />CustomerPerspective<br />– 2 –<br />Screen Initiatives<br />InternalPerspective<br />OrganizationLearning<br />Output: Short List of Strategically Aligned Initiatives<br />
    24. 24. Prospects :<br />Vision &<br />Strategy<br />
    25. 25. Customer Prospect:<br />Customer Perspective identifies Targeted <br />Customer and market Segments and Measures<br /> the Organization’s success in these Segments<br /> In today’s business scenario “Customer is the king”<br />
    26. 26. Customer Prospect:<br />Customer Retention <br />Customer Profitability<br />Customer Satisfaction<br />Market Share<br />Customer Acquisition<br />Price<br />Availability<br />Brand<br />Service<br />Quality<br />
    27. 27. Customer Perspective:<br />
    28. 28. Customer Perspective:<br />
    29. 29. Customer Perspective:<br />
    30. 30. Customer Perspective:<br />
    31. 31. Customer Perspective:<br />
    32. 32. Customer Perspective:<br />
    33. 33. Internal Business Process Prospective:<br />This perspective focuses on internal operations <br />That create value for customers that ,in turn, <br />furthers the financial perspective by increasing<br /> the shareholder value<br />There are four main themes in this perspective, namely: <br /><ul><li>Operations Management Process
    34. 34. Customer Management Process
    35. 35. Innovation Process
    36. 36. Regulatory and Social Process</li></li></ul><li>Strategic Objectives in Internal Process<br />Operations <br />Management <br />Processes<br />Customer<br />Management <br />Processes<br />Regulatory <br />and Social <br />Processes<br />Innovation <br />Processes<br />Processes that produce and deliver products and services<br />Processes that enhance customer value<br />Processes that create new products and services<br />Processes that improve communities and the environment<br /><ul><li> Supply
    37. 37. Production
    38. 38. Distribution
    39. 39. Selection
    40. 40. Acquisition
    41. 41. Retention
    42. 42. Growth
    43. 43. New Ideas
    44. 44. R&D Portfolio
    45. 45. Design/ Develop
    46. 46. Launch
    47. 47. Environment
    48. 48. Safety & Health
    49. 49. Employment
    50. 50. Community</li></li></ul><li>Internal Business Process Prospective:<br />
    51. 51. Internal Business Process Prospective:<br />
    52. 52. Internal Business Process Prospective:<br />
    53. 53. Internal Business Process Prospective:<br />
    54. 54. Learning & Growth Perspective<br />This perspective reflects the capability that a company should have, namely:<br /><ul><li> Human Capital
    55. 55. Organization Capital
    56. 56. Information Capital
    57. 57. This perspective shows us that good human resource development system, organizational system and information system forms a solid foundation for improving company performance. </li></li></ul><li>Learning & Growth Prospect:<br />Organization Capital<br />Information Capital<br />Human Capital<br /><ul><li> Skills
    58. 58. Knowledge
    59. 59. Attitude
    60. 60. Systems
    61. 61. Database
    62. 62. Networks
    63. 63. Culture
    64. 64. Leadership
    65. 65. Organization Development</li></li></ul><li>Learning & Growth Prospective:<br />
    66. 66. Learning & Growth Prospective:<br />
    67. 67. Learning & Growth Prospective:<br />
    68. 68. Learning & Growth Prospective:<br />
    69. 69. Financial Prospective:<br />In the financial perspective, the strategic goal<br /> is the long-term shareholder value. This goal is <br />driven by two factors, namely : <br />revenue growth and cost efficiency.<br />
    70. 70. Financial Prospective:<br />Long-term Shareholder Value<br />Revenue Growth<br />Cost Efficiency<br />Expand Revenue Opportunities<br />Improve Cost Structure<br />Increase Asset Utilization<br />Enhance Customer Value<br />
    71. 71. Financial Prospective:<br />
    72. 72. Benefits:<br /><ul><li>Gives the complete picture of the employee as well as the organizational performance.
    73. 73. It guides users in determining the critical success factors and performance indicators.
    74. 74. Strategic review or analysis of the organizational capabilities and performance.
    75. 75. Focusing the whole organization on the few key things needed to create breakthrough performance.
    76. 76. Integrating and directing the performance and efforts from the lowest levels in the organization to achieve excellent overall performance. </li></li></ul><li>Conclusion:<br /><ul><li> BSC implemented the strategic framework in process industry
    77. 77. BSC helped to measure performance of the organization and highlighted the need for business redesign of organization.
    78. 78. It also provided a flexible framework that makes company objectives actionable at all level of organization.
    79. 79. BSC aligned the organization (Monsanto) with strategy</li>

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