The document discusses the Balanced Scorecard (BSC) management strategy. It begins with an introduction to BSC, created by Kaplan and Norton in the 1990s. The document then covers [1] the purpose and benefits of BSC in setting goals and measuring performance across financial, customer, internal process, and learning/growth perspectives; [2] the philosophy of having employees who create performance also measure it; and [3] the principles of aligning BSC with an organization's strategy. It provides steps for developing a BSC including assessing values, planning strategy, setting objectives/measures/targets, creating a strategy map, defining initiatives, and automating the system. Finally, it discusses Vietnam-based DHG

1. Subject: Quality Management
Faculty of Business Administration
Group 6-KITT

2. CONTENT
I.
Introduction
II. Purpose and Benefit
III. Philosophy
IV. The principle of application
V. The way for Applying
VI. Applicant for BSC in Vietnam

3. I. INTRODUCTION
 Who?
Robert S. Kaplan
David Norton
 When & Where?
Starting from 1990,
now is over the world.

4. I. INTRODUCTION
 What?
FINANCE
Objective Measure Target Initiative
LERNING AND GROWTH
Objective Measure Target Initiative
INTERNAL PROCESSES
MISSION
STRATEGY
Objective Measure Target Initiative
CUSTOMER
Objective Measure Target Initiative

5. I. INTRODUCTION
 Why?
“3 in 1” :
• One of the measuring performance system
• One of the communication tools (or communication)
• One of the managing method of The Effective Strategy
within the organization.
 How?
Individual: interpret and implement The Effective Strategy
in order to improving the performance and measuring the
working productivity.
Organization: improve treatment regimes poisoning,
allocate logically human resources.

6. II. PURPOSE AND BENEFITS
 Purpose
Building a scorecard system : Perspective, Objective,
Indicator, Target, Initiative of each person and each
department
=> carry out, measure and manage the implementation
of organizational strategy

7. II. PURPOSE AND BENEFITS
 Benefit
• Setting goals, targets appropriate with the general strategy of
the organization through the scorecard system
• Construction and adjustment actions of the organization by
the measurement results by Scorecard
• Expressing clearly, briefly strategy to all levels
information, promote a spirit of co-ordinates
=> share
• Overcoming the limitations of traditional methods: long cycles,
not specified the problem, allocate resources disproportionately,
only the short-term results

8. II. PURPOSE AND BENEFITS
 Benefit
• Solve four major hurdles in the strategy's implementation:
vision barriers, human barriers, resource barriers and
management barriers
• Accurately assess the results of each level => preferential
treatment policies, additional human resources
• Creating a scientific basis for the planning and development
of intangible: strategy training, development of business
knowledge, Optimize Value management elements of internal
processes

9. III. PHILOSOPHY
• “Performance should be measured by
people who create it”, not just be measured
by someone else.
• Each person is associated with one another
and with the overall strategy of the
organization according to the principle of the
“cause and effect” theory. This is the basis for
interpreting
a
common
objectives for each person.
strategy
into

10. III. PHILOSOPHY

11. IV. THE PRINCIPAL OF APPLICATION
The effective relations with staff and with other
stakeholders (unions, distributors, major customers).
Empower staff appropriately
Links Scorecard system with oriented strategy of the
organization chart
● Combined Measurement Assessment, Planning and
Performance Improvements to management

13. IV. THE PRINCIPAL OF APPLICATION

14. V. THE WAY
FOR
APPLYING

15. STEP1: ASSESSMENT
• Customer Values
• Organization Pain
• Organization Values
• Vision & Mission

16. STEP1: ASSESSMENT
• Mission?
• Vision ?
• Core value ?
• Goals ?
• SWOT analysis, Porter’s Five
Forces, Competitive analysis,
Interview.
• Consultation of the Executive
(Executive team)

17. STEP2: STRATEGY PLANNING
Themes
Strategic Results
Strategies

18. STEP2: STRATEGY PLANNING
Platform strategies to implement mission and vision
of the company
• 3 to 5 medium-term strategies (2-4 years)
• Should be different from competitors. Ex: Effective
quality training, customer service, maintain a good
relationship with the Supplier,...

19. STEP3: OBJECTIVE
•
Strategy Elements

20. STEP3: OBJECTIVE
The objectives of the company to
implement the proposed
strategies
Each objective is reviewed base on
4 perspectives:
• Finance
• Customer
• Internal process
• Learn & Growth

21. STEP3: OBJECTIVE

22. STEP4: STARTEGY MAP
Performance Drivers
• Enablers
• Causal Links
•

23. STEP4: STARTEGY MAP
Strategic mapping of the principle levels from top to
bottom starting from the strategy of the organization
Objectives will be reviewed to find the relationship
between them.
Causal relationship: cause and effect link

24. STEP5: PERFORMANCE MEASURES
Performance Measures
• Targets
• Baselines
•

25. STEP5: PERFORMANCE MEASURES
Measures to evaluate the
performance
of
the
objective
+
Lagging
Indicator:
outcome- to be achieved
+ Leading Indicator. driverto achieve that outcome
With numerical targets
Ex: Objective: "Customer
satisfaction“
→ Measure1: Number of
customer
complaints(lagging)- 30
→ Measure 2: counselor
working
hours
with
clients(Leading)-120

26. STEP6: INITIATIVES
•
New Projects

27. STEP6: INITIATIVES
- Defining initiatives to complete each objective
and measure

28. STEP7: AUTOMATION
Software
• Performance Reporting
• Knowledge Sharing
•

29. STEP7: AUTOMATION
Everything (or most things) should be implemented in
a software-based automation specialist for BSC:
+Data collection, to test reports, chart review …
Software,
Performance
Reporting,
Knowledge sharing

30. CASCADE
Alignment
• Business & Support Unit
Scorecards
•

31. CASCADE
Transferring content in the BSC Organization down to every
employee in the enterprise to construct:
+ BSC Department level--> BSC Unit Level--> BSC Personal
Level
Building a BSC at each level which suit, consistent with the
strategy map of that level

32. EVALUATION
Performance Results
• Revised Strategies
•

33. EVALUATION
Assessing the new BSC’s omission which need to amend or
even remove in order to build a BSC product most suitable
for company

34. •
Customer Values
• Organization Pain
• Organization Values
• Vision & Mission
•
Performance Results
• Revised Strategies
• Alignment
•
Business &
Support Unit
Scorecards
•
Themes
• Strategic Results
• Strategies
•
Strategy
Elements
•
Software
• Performance
Reporting
• Knowledge
Sharing
•
Performance Drivers
• Enablers
• Causal Links
•
Performance Measures
• Targets
• Baselines
•
New Projects

36. V. APPLICATION OF BSC IN VIETNAM

37. V. APPLICATION OF BSC IN
VIETNAM
INTRODUCTION
Vision
“For a more beautiful and healthier life”
Mission
“DHG Pharma always provides high quality products and
services to satisfy the aspiration for a more beautiful and
healthier life.”

38. V. APPLICATION OF BSC IN
VIETNAM
INTRODUCTION
Importance milestones:
-1996: The first year that DHG Pharma’s products was elected
as “Vietnam High Quality Goods”, the factories complied with
the GMP standard, being the leader of Vietnam
pharmaceutical industry until now.
- 2004: Equitization
- 2006: “DHG” being listed on HOSE

39. V. APPLICATION OF BSC IN VIETNAM
THE APPLICATION OF BSC
IN DHG PHARMA

40. THE APPLICATION OF BSC
Economic situation:
The financial crisis in 2008
• Input materials for pharmaceutical production,
largely due to imports
• Exchange rate fluctuation

41. THE APPLICATION OF BSC
The need to have a model of strategic planning and control?

42. THE APPLICATION OF BSC
Sales and marketing
How can we develop an
effective marketing plan?
Personnel
How can we manage what
we have now more
effectively?
-------------------
-------------------
Production and
products
Which plans to improve the
internal process?
-------------------
Finance and
investment
What else we can do with
the current production
facility?
-------------------

43. THE APPLICATION OF BSC
Sales and marketing (Customer)
+ Minimizing the maximum competitive advantage,
+ Focusing on the development of key product groups,
+ Focus on traditional customer groups.
+ Construction while enhancing the brand image in the minds of
consumers through media activities, social activities with criteria to
mini
+ The settlement of debts, minimize costs and optimize efficiency.

44. THE APPLICATION OF BSC
Finance and investment (Finance)
+ Reasonable timing for storage of raw materials,
+ The balance between exchange rates and raw material prices,
+ Review and standardize the investment projects to refer to
carrying out the project really necessary and effective.

45. THE APPLICATION OF BSC
Production and products (Internal Processes)
+ construct standard processes to reduce wastage, reduce costs;
+ organize activities to stimulate creativity in order to increase
productivity and improve product’s quality.
Personnel (Learning and Growth)
+ strengthen, mobilize additional personnel for sales line,
+ enhance training key staff and organize a series of training
programs for employees.

46. THE APPLICATION OF BSC
Results

48. MISSION ROSTER
STT MSSV
Tên
Nhiệm Vụ
1
71006087 Nguyễn Ánh Chiêu Dương
Conclusion and content of
part II- presenting
2
71006140 Đoàn Doãn Ngọc Trinh
PowerPoint- Presenting
3
71006055 Trần Thị Quỳnh Như
4
71006148 Nguyễn Thị Hải Yến
The Way of application
(Steps)
Introduction and conlusion
5
71006080 Nguyễn Diệp Ngọc Yến
Content of part II
6
71006136 Nguyễn Thị Thuỳ Trang
Purpose and Benefits
7
71006147 Huỳnh Hải Yến
Principal and examples
8
Dương Kim Mai
Requirements of method and
examples