SlideShare a Scribd company logo
-
-The
Balanced
Scorecard
Your Company
Name
Content
2
Concept
A performance metric
used in strategic
management to identify &
improve various internal
functions of a business &
their resulting external
outcomes
Used to measure and provide
feedback to organizations
W
w
,_
_
'•- =
.....-
... . "'•
-
...
-........:: .......
I
I
Data collection is crucial to
providing quantitative
results
•
3
As the information gathered is
interpreted by managers and
executives and used to make better
decisions for the organization
Need for BSC
4
BSC - Perspectives
5
Perspectiv
e
Financial Return of Capital Employed, Economicvalue added,Sales growth, Cash flow
'
Customer Customer sat1sfact1o
n, retention, acqu1s
1
!1on
, profitability, market
share
BSC Perspectives - Measurement
6
To succeed financially, how should we
appear to our shareholders?'
Objectives Measures Targets
'To achieve our vision, how
should we appear to our
customers?"
Initiatives
"To satisfy our shareholders and
customers, what business processes must
we excel at?'
Objectives Measures Targets Initiatives
Objectives Measures Targets Initiatives
'To achieve our vision, how will we
sustain our ability to change and
improve?'
Objectives Measures Targets Initiatives
Balanced Scorecard Implementation
Position of scorecard in company process
7
Financial
Perspectiv
e
BSC Strategy
Map
I
-
Financial
Perspective
Customer Value
Perspective
,Q
If°'
Internal
Perspective
Learning and
Growth Perspective
8
Improve ShareholderValue
Revenue Growth Strategy
Shareholder
Value ROCE
Productivity Strategy
Bui d
Franchise
Increase
Customer Value
Improve Cost
Structure
Improve Asset
Ut1hzat1on
New Revenue Sources CustomerProfitability Cost Per Unit
t CustomerAcquisition t CustomerRetention
Asset Utilization
Product leadersh ip
Customer lntinacy
Customer Value Proposition Operational
excellence
Relationship Image
ProductSeNiceAttributes
Time
Price Functionality SErvice
Customer Satisfaction
Climate for Action
Strategy Competencies Strategic Technologies
Scorecard- Department Level
Are we
satisfying user
needs
?
How do users
see us?
User Orientation
Goals Measures
What can we do meet the
future needs of users?
How do we look to management?
BusinessValue
Goals Measures
What must we
excel at?
Internal Process
Goals Measures
Internal Efficiency
+
Customer Satisfaction
-
-
Service Success
Future Readiness
Goals Measures
9
Are we
working
efficiently?
How can we continueto
improve and create value?
What technologies and business opportunities/challenges are emerging?

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9 (9 files merged).ppt

  • 3. Concept A performance metric used in strategic management to identify & improve various internal functions of a business & their resulting external outcomes Used to measure and provide feedback to organizations W w ,_ _ '•- = .....- ... . "'• - ... -........:: ....... I I Data collection is crucial to providing quantitative results • 3 As the information gathered is interpreted by managers and executives and used to make better decisions for the organization
  • 5. BSC - Perspectives 5 Perspectiv e Financial Return of Capital Employed, Economicvalue added,Sales growth, Cash flow ' Customer Customer sat1sfact1o n, retention, acqu1s 1 !1on , profitability, market share
  • 6. BSC Perspectives - Measurement 6 To succeed financially, how should we appear to our shareholders?' Objectives Measures Targets 'To achieve our vision, how should we appear to our customers?" Initiatives "To satisfy our shareholders and customers, what business processes must we excel at?' Objectives Measures Targets Initiatives Objectives Measures Targets Initiatives 'To achieve our vision, how will we sustain our ability to change and improve?' Objectives Measures Targets Initiatives
  • 7. Balanced Scorecard Implementation Position of scorecard in company process 7 Financial Perspectiv e
  • 8. BSC Strategy Map I - Financial Perspective Customer Value Perspective ,Q If°' Internal Perspective Learning and Growth Perspective 8 Improve ShareholderValue Revenue Growth Strategy Shareholder Value ROCE Productivity Strategy Bui d Franchise Increase Customer Value Improve Cost Structure Improve Asset Ut1hzat1on New Revenue Sources CustomerProfitability Cost Per Unit t CustomerAcquisition t CustomerRetention Asset Utilization Product leadersh ip Customer lntinacy Customer Value Proposition Operational excellence Relationship Image ProductSeNiceAttributes Time Price Functionality SErvice Customer Satisfaction Climate for Action Strategy Competencies Strategic Technologies
  • 9. Scorecard- Department Level Are we satisfying user needs ? How do users see us? User Orientation Goals Measures What can we do meet the future needs of users? How do we look to management? BusinessValue Goals Measures What must we excel at? Internal Process Goals Measures Internal Efficiency + Customer Satisfaction - - Service Success Future Readiness Goals Measures 9 Are we working efficiently? How can we continueto improve and create value? What technologies and business opportunities/challenges are emerging?