Balance score card

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uploaded on 8th feb 2013

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Balance score card

  1. 1. Balanced scorecard
  2. 2. What is balanced scorecard? It was developed to communicate the multiple linked objectives that companies must achieve to compete on the basis of innovation, not just tangible physical assets It translates the mission and strategy into objectives and measures, organized into four perspectives
  3. 3. Strategies Financial perspective Customer perspective Internal business perspective Learning and growth perspective
  4. 4. Financial perspective Measures the financial performance and economic actions It indicates whether the company’s strategy , implementation and execution are contributing to the bottom line customers Related to: profitability, EVA, sales growth, generation of cash flows
  5. 5. Customer perspective Identifying customers market segments Measuring the performance in the market segments Measures like customer satisfaction, customer retention ,new customer acquisition, customer profitability, market and account share in segment Attributes that organizes the value proposition Product and service attributes Customer relationship Image and reputation
  6. 6. Internal business process perspectiveIdentifies the critical internal process in which organizations must excel. Deliver the value proposition that will attract and retain customers in targeted market segments Satisfy shareholder expectation of excellent financial returns
  7. 7. Generic value chain modelCustomer Needidentified Innovation cycle Operations Post sales cycle Service cycle Customer Need satisfied
  8. 8. Learning and growth perspective Identifies the infrastructure that the organization must build to create long term growth and improvement Three principle sources People Systems Organization Reskilling employees, enhancing information technology and systems, aligning organizational procedures and routine
  9. 9. ObjectivesStrategic financial objectives Improve return on spending Reduce costs Increase revenues Reduce risk
  10. 10. Strategic customer objectives Offer customized value proposition to targeted customer segments Define proposition through different customer values Understand the economic fulfilling various propositions Target customers whose value propositions can be fulfilled profitably Differentiators act Perform consistently in the eyes of the customer Service customers expediently Eliminate mistakes
  11. 11. Internal business objectives Innovation Make the market Create the product Delivery Market and sell Distribute and service
  12. 12. Learning and growth objectives Creating information assets Reskilling: strategic job and competencies Accountability and reward linkage Focus our resources
  13. 13. Linking of multiple score card measures into a single strategy Cause and effect relationship Performance drivers

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