The Balanced Scorecard (BSC) is a strategic performance management tool that helps organizations measure and manage their strategies through a framework that includes financial and non-financial data. It consists of four perspectives: financial, customer, internal processes, and learning & growth, guiding managers in goal-setting and performance monitoring. Companies adopt the BSC to better communicate and implement strategies that foster growth and enhance competitiveness.

1. BALANCE SCORECARD
BY:
PRASHANT VERMA
500022432
BBA-LM VTH SEM.

2. • The balanced scorecard (BSC) is a strategy performance
management tool not a software.
• It is supported by design methods and automation tools.
• It provides a framework that not only provides performance
measurements, but helps planners to identify what should be
done and measured.
• It can be used by managers to keep track of activities by the
staff within their control and to monitor the consequences
arising from these actions.
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3. CHARACTERSTIC
• Its focus on the strategic agenda of the organization .
• The selection of a small number of data items to monitor
• A mix of financial and non-financial data items.
• It enables executives to truly execute their strategies.
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4. THE FOUR PERSPECTIVE OF
BALANCE SCORECARD
• What must we do to satisfy our financial
contributors?
• Who is our customer?
• What do our customers expect from us?
• What internal processes must we excel at to
satisfy our fiscal obligations, our customers and
the requirements of our mission?
• How must our people learn and develop skills to
respond to these and future challenges?
Profit Driven Mission Driven
• What must we do to satisfy our shareholders?
• What do our customers expect from us?
• What internal processes must we excel at to satisfy
our shareholder and customer?
• How must our people learn and develop skills to
respond to these and future challenges?
Financial Perspective
Customer Perspective
Internal Perspective
Learning & Growth
Perspective
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5. THE PROCESS: CONSTRUCTING A BALANCED
SCORECARD
• 1.DEFINEAFEWGOALSINEACHPERSPECTIVE
• 2.SELECTAFEWINDICATORSFOREACHGOAL
• 3.CONSTRUCTTHEMETRICS
• A.IDENTIFYDATASOURCES
• B.WRITEUPMETHODS
• C.CHOOSETARGETS
• 4.COLLECTDATA&REVIEWRESULTS
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6. 1. LEADERSHIP FROM THE TOP
• CREATE THE CLIMATE FOR
CHANGE
• CREATE A COMMON FOCUS FOR
CHANGE ACTIVITIES
• RATIONALIZE AND ALIGN THE
ORGANIZATION
3. Unlock and Focus Hidden Assets
– Reengineer Work Processes
– Create Knowledge Sharing Networks
2. Make Strategy Everyone’s Job
– Comprehensive Communication to
Create Awareness
– Align Goals and Incentives
– Integrate Budgeting with Strategic
Planning
– Align Resources and Initiatives
4. Make Strategy a Continuous
Process
– Strategic Feedback That Encourages
Learning
– Executive Teams Manage Strategic
Themes
– Testing Hypotheses, Adapting, and
Learning
THE INGREDIENTS OF HIGHLY SUCCESSFUL
BALANCED SCORECARD PROGRAMS
STRATEGY
Formulate
NavigateCommunicate
Execute
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7. Strategy maps are communication tools used to tell how value is created for the organization.
They show a logical, step-by-step connection between strategic objectives in the form of a
cause-and-effect chain.
Generally speaking, improving performance in the objectives found in the Learning & Growth
perspective (the bottom row) enables the organization to improve its Internal Process
perspective Objectives (the next row up), which in turn enables the organization to create
desirable results in the Customer and Financial perspectives.
BY: PRASHANT

8. WHY ARE COMPANIES ADOPTING A
BALANCED SCORECARD?
• Change
Formulate and communicate a new
strategy for a more competitive
environment
•Growth
Increase revenues, not just cut costs
and enhance productivity
• Implement
From the 10 to the 10,000. Every
employee implements the new
growth strategy in their day-to-day
operations
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9. BY: PRASHANT