The document discusses using a balance scorecard to measure business strategy. It describes building a scorecard with four perspectives: financial, customer, internal processes, and learning and growth. For the financial perspective, it outlines strategic themes for different stages of a business unit's lifecycle - growth, sustain, and harvest. These themes include revenue growth and mix, cost reduction/productivity improvement, and asset utilization/investment strategy. Generic measures are provided for each theme.

1. Measuring Business Strategy Through Balance Scorecard

2. Organization Using balance scorecard 2 tasks Building Scorecard Using Scorecard Organization Organization Organization

3. Building Scorecard Financial Customer Internal Learning Return on Investment, Economic value Added Satisfaction, Retention, Market and Account Share Quality, Response time, Cost New Product Employee Satisfaction & Information System Perspectives Generic Measures

4. Financial Perspective

5. Linking Financial Objectives to Business Unit Strategy 3 Stages Growth Sustain Harvest

6. Growth Early stage of life cycle Products having Growth Potential Committing Resources Expanding production facilities Operating capabilities Investing in systems Investing in Infrastructure Investing in distribution network More cash outflow Financial Objective-%age sales Growth customer groups

7. Sustain Stage Attract investments Required extra return Maintain existing markets Growth is expected Enhancing improvements Profitability Return on Investment Economic Value Added

8. Harvest Stage Maturity phase Enough to maintain equipments No expansion New invest with Short Pay Back Maximize Cash flow Reduction in WC Requirements

9. Strategic Theme for the Financial Perspective Growth Sustain Harvest Revenue Growth Mix Cost Reduction/Productivity improvement Assets Utilization/Investment Strategy

10. Strategic Theme for the Financial Perspective Revenue Growth Mix Sales Growth Market Share Revenue From New Products Services & Customers

11. Strategic Theme Sales Growth rate by Segment, Percentage Revenue from new Products, services… Revenue/Employee Investment(% Of Sales) R & D (% of Sales) Share of Targeted Customers Cross Selling % Revenue from new Application Customer & Product line Profitability Customer & Product line Profitability % Unprofitable Customers Cost versus Competitors Cost rates Indirect Expenses ( % of Sales) WC Ratios (Cash to Cash Cycle) ROCE Assets Utilization Rates Unit Costs (Per unit of output Per transaction) Payback Throughput Revenue Growth And Mix Cost Reduction Productivity Improvement Asset Utilization Business Unit Strategy Growth Sustain Harvest

12. Strategic Theme for the Financial Perspective Revenue Growth Mix New Product/Service % Revenue Increase

13. Strategic Theme for the Financial Perspective Revenue Growth Mix New Application

14. Strategic Theme for the Financial Perspective Revenue Growth Mix New Customers and Markets

15. Strategic Theme for the Financial Perspective Revenue Growth Mix New Relationship

16. Strategic Theme for the Financial Perspective Revenue Growth Mix New Product and Service Mix

17. Strategic Theme for the Financial Perspective Revenue Growth Mix New Pricing Strategy

18. Strategic Theme for the Financial Perspective Cost Reduction/Productivity Improvement Increase Revenue Productivity

19. Strategic Theme for the Financial Perspective Cost Reduction/Productivity Improvement Reduce Unit Costs

20. Strategic Theme for the Financial Perspective Cost Reduction/Productivity Improvement Improve Channel Mix

21. Strategic Theme for the Financial Perspective Cost Reduction/Productivity Improvement Reduce Operating Expenses

22. Strategic Theme for the Financial Perspective Asset Utilization Investment Strategy Cash to Cash Cycle

23. Strategic Theme for the Financial Perspective Asset Utilization Investment Strategy Improve Asset Utilization

24. Questions