The document discusses the Balance Scorecard, a strategic planning and management tool. It defines the Balance Scorecard, outlines its key components including financial and non-financial measures, short-term and long-term goals. The Balance Scorecard was created in 1992 by Kaplan and Norton to help organizations translate strategy into tangible objectives. An example is provided of how Pantaloon Retail India Limited, a large retailer, implemented the Balance Scorecard framework.

1. 2010
BALANCE SCORE CARD
PROJECT SUBMITTED BY
ALKA SINGH
SHASHI BALA
MONIKA PRATAP SINGH
ANURADHA MATHURIA
JAYOTI VIDYA PEETH WOMEN’S

2. WHAT IS A BALANCE SCORECARD?
The Balance score card is a strategic planning and management
system that is used extensively in business and industry government
and nonprofit organization worldwide align business activities to the
vision and strategy and external communication and monitor
organization against strategic goals.
At the highest level, the Balanced Scorecard is a framework that helps
organizations translates strategy into operational objectives that drive
both behavior and performance.
Balance score card is a comprehensive performance measurement
tool that reflects all the measures critical for the success of the firm’s
strategy.
It’s a performance report based on a broad set of both financial and
non financial measures.
Customer value creation in turn drives financial performance and
profitability.

3. THE BALANCE SCORE CARD
What is it?
 Balance financial and non –financial measures.
 Balance short and long –term measure.
 Balance performance drivers (leading indicators) with outcome
measures (lagging indicators).
 Should contain just enough data to give a complete picture of
organizational performance.
 Leads to strategic focus and organizational alignment.
Why do it?
 To achieve strategic objectives.
 To provide quality with fewer resources.
 To eliminate non value added efforts.
 To continually improve.
 To increase accountability.

4. HISTORY
It was originated by Dr. Robert Kaplan (Harvard business school)
and Dr. David Norton in 1992 as a performance measurement
platform that added strategic non- financial performance measure
to traditional financial metrics to give managers a more balanced
view of organizational performance.
BSC IS A MEASUREMENT TOOL
 It allows the organization to assess progress in implementing
strategy.
 It allows the organization to benchmark its progress against
great practices outside and inside the organization, and over
time.
 It provides a diagnostic framework for tracking relationships and
impact among strategies.
BSC IS A COMMUNICATION TOOL
 It allows an organization to articulate its chain of value creation
within the organization and to the world at large.

5.  It provides a platform for planning and communication of
planning activities.
EXAMPLE OF A COMPANY’S BSC

6. BSC IS A STRATEGIC MANAGEMENT
TOOL
 It allows an organization to see all of the drivers of
organizational value and performance in a holistic conceptual
framework.
 It creates a pathway for the creation and implementation of
strategy and measurement of progress that is fully aligned
throughout the organization.
IMPORTANCE
 Gives competitive advantage to the organization.
 Improve organizational performance.
 Performance is documented.
 Improves communication of the organization vision and
strategies.

7. ADVANTAGES OF BALANCED SCORE
CARD
 It translates vision and strategy into action.
 It defines the strategic linkages to integrate performance across
organizations.
 It communication the objective and measures to a business unit.
 It aligns the strategic initiatives in order to attain the long-term
goals.
 It aligns everyone within an organization so that all employees
understand how they support the strategy.
 It provides a basis for compensation for performance.

8.  The scorecard provides a feedback to the senior management if
the strategy is working.
 Focusing the whole organization on the few key things needed
to create breakthrough performance.
 Helps to integrate various corporate programs. Such as: quality,
re-engineering, and customer service initiatives.
 Breaking down strategic measures toward lower levels, so that
unit managers, operators, and employees can see what’s
required at their level to achieve excellent overall performance.
 A means for implementing strategy by drawing managers’
attention to strategically relevant critical success factors, and
rewarding them for achievement of these factors.
 A fair and objective basis for firms to use determining each
manager’s compensation and advancement.
LIMITATIONS
 No financial information is subject to the reliability of the source
and processes used.
 Some information is required to the handled confidentially.
 Require timely appropriate reporting of some elements of the
scorecard.

9.  It is not easy to implement this tool because it involves a lot of
subjectivity.
 The tool is much more complex compared to the other tools.
 The measures that need to be taken are contingent upon the
kind of environment, industry and the business the organization.
 A lot of refinement still required to be done so that it becomes
understandable to every stakeholder.
PANTALOON RETAIL INDIA LIMITED

10. KISHORE BIYANI CEO AND MD.
ABOUT THE COMPANY
 Found in 1987, ranked amongst top five retail companies in
INDIA.
 Subsidiary of the future group.
 Has over 1000 stores across 71 cities in India and employs over
30,000 people.
 Pantaloon retail was recently awarded the international retailer
of the year 2008.
 Emerging market retailer of the year 2008 at the world congress.

11.  First Retail Company to implement BSC in INDIA.
 In 2009 big bazaar opened its 100th store in Siliguri, west Bengal,
marking the fastest ever organic expansion of a hypermarket.
The first set of big bazaar stores opened in 2001 in Kolkata,
Hyderabad and Bangalore.
ROAD MAP OF THE COMPANY FOR
BALANCE SCORE CARD:
The road to developing the balanced score card at pantaloon
began with keeping in mind the vision of the company. That to
achieve sales of Rs.1000 core and PBDIT of per cent by the year
2005. And with this vision in mind, the four parameters –
financials, customer service, internal processes and learning and
growth – was incorporated, which would be applicable to the
people in the corporate boardroom at pantaloon to employees
at the head quarters and the stores. So for the employees to be
rewarded, he or she will have to match up to the target set in
each of the four parameters. The flow begins with corporate
score card as it was imperative for the top brasses to be excited
and convinced about it before it percolates to the next level.
Form thereon, it flows to individual departments. Departments
like category management, operations, human resources,
information technology and accounts…
The effects of the company through balance score card are show
in next through the picture:-

12. CUSTOMER PERSPECTIVE
 Customer retunes and complaints.
 Customer satisfaction surveys.
 Delivery time of the apparels.
 Coverage and strength of distribution channel.
INTERNAL BUSINESS PROCESS

13.  Number of defects, amount of rework, number of returns.
 Total cycle time, machine efficiency.
 Number of accidents. Severity of the accidents.
LEARNING & GROWTH
 Number of new apparel designs.
 R & D output success rate.
 Number of training hours.
 Employee turnover, number of complaints.
 Employee satisfaction and retention.
SUMMARY
Balance score card is a tool which tells us the knowledge skills and
systems that employees will need (learning and growth) to innovate
build and adopt the right strategic capabilities and efficiencies
(internal process) that delivers desired value to the market (customer)
which will eventually lead to the accumulation of shareholder value
(financial).