The document discusses the Balanced Scorecard, a strategic planning and management system used to align business activities with organizational vision and strategy. It does this by monitoring performance against strategic goals across four perspectives: financial, customer, internal business processes, and learning and growth. Key measures are identified for each perspective. The Balanced Scorecard framework translates strategy into objectives and measures across the four perspectives, allowing an organization to track strategic performance and progress.

1. BALANCE
SCORE CARD
BY:
ARJUN BHALLA

2. What is a Balanced Scorecard?
The Balanced Scorecard is a strategic
planning and management system used
to align business activities to the
vision and strategy of the organization
by monitoring performance against
strategic goals.

3. How is the Balanced Scorecard Used?
Translating the vision
Communicating and
linking
Feedback and learning
Business planning

4. FOUR Business Perspectives OF BSC
 The Balanced Scorecard
model suggests that we
view the organization from
4 perspectives.
 Then Develop metrics,
collect data and analyze it
relative to each of these
perspectives

6. The Financial Perspective
Timely and accurate
funding data will always be
a priority, and managers
will do whatever necessary
to provide it.

8. THE CUSTOMER PERSPECTIVE
It is the value proposition
that the organization will
use in order to satisfy
customers and generate
more sales to the targeted
customers segments.

9. The Customer Perspective – Core measures
Market
Share
Customer
Retention
Customer
Profitability
Customer
Satisfaction
Customer
Acquisition

10. The INTERNAL Business Process
Perspective
Metrics based on this perspective
allow the managers to know how
well their business is running,
and whether its products and
services conform to customer
requirements (the mission).

11. INTERNAL BUSINESS
PROCESS
3 sub processes
Innovation
Process
Creating
Products/
Services &
Processes to
meet the demand
of Customers
Operations
Process
Producing &
delivering the
Existing
products that
will meet the
needs Of
Customers
Post sale
service
Process
Providing service
and Support to the
customer
after the sale of a
product or service

12. The Learning & Growth Perspective
• Employee capabilities (core competencies and skills)
▫ Employees obtaining the skills necessary to support the
strategy.
• Information system capabilities
▫ Explore what information systems you might need to
execute your strategy effectively
• Strategy awareness and motivation
▫ Motivation and alignment issues by running the program
that will explain strategy to your employees and involve
them in the strategy execution.

13. Objectives
Long term
success
Capability
Employee Skills
Information Systems
Organizational
Processes
Measures
Satisfaction
Retention
Training
Capabilities
Accuracy
Real time availability
Pervasiveness
Alignment of incentives
with key success factors
Improvement in key
customer & internal
processes

14. Scorecard Potential Pitfalls & Criticisms
 Lack of a well Defined Strategy
 The balanced scorecard relies on a well defined strategy and understanding
of linkages between strategic objections and metrics. Without this
foundation the implementation could fail.
 Too much focus on the lagging measures
 Focusing on only the lagging measures may cause a lack of priority or
opportunity for the leading measures.
 Use of Generic Metrics
 Don’t just copy metrics from another firm. Identify the measures that apply
to your strategy and competitive position .
 Self-serving managers
 Managers whose goal is to achieve a desired result in order to obtain a bonus
or other self reward.