The balanced scorecard is a strategic planning and management system used by businesses, governments, and nonprofits to align activities with organizational vision and strategy. It was created in the 1990s by Robert Kaplan and David Norton to add non-financial metrics to traditional financial measures, providing a more balanced view of performance. The balanced scorecard has evolved into a full strategic management system that transforms strategic plans into daily action. It suggests measuring performance from four perspectives: learning and growth, business processes, customers, and finance.

1. Balanced Score Card
Technique

2. Balanced Score Card Technique
• The balanced scorecard is a
strategic planning and management system
that is used extensively in business and
industry, government, and nonprofit
organizations worldwide to align business
activities to the vision and strategy of the
organization, improve internal and external
communications, and monitor organization
performance against strategic goals

3. Balanced Score Card Technique
• It was originated by Drs. Robert Kaplan
(Harvard Business School) and David
Norton as a performance measurement
framework that added strategic non-
financial performance measures to
traditional financial metrics to give
managers and executives a more
'balanced' view of organizational
performance.

4. Balanced Score Card Technique
• While the phrase balanced scorecard was
coined in the early 1990s, the roots of the
this type of approach are deep, and
include the pioneering work of General
Electric on performance measurement
reporting in the 1950’s and the work of
French process engineers (who created
the Tableau de Bord – literally, a
"dashboard" of performance measures) in
the early part of the 20th century.

5. Balanced Score Card Technique
• The balanced scorecard has evolved from its
early use as a simple performance
measurement framework to a full
strategic planning and management system.
The “new” balanced scorecard transforms an
organization’s strategic plan from an attractive
but passive document into the "marching orders"
for the organization on a daily basis. It provides
a framework that not only provides performance
measurements, but helps planners identify what
should be done and measured. It enables
executives to truly execute their strategies.

6. Balanced Score Card Technique
• This new approach to strategic
management was first detailed in a series
of articles and books by Drs. Kaplan and
Norton. Recognizing some of the
weaknesses and vagueness of previous
management approaches, the balanced
scorecard approach provides a clear
prescription as to what companies should
measure in order to 'balance' the financial
perspective.

7. Balanced Score Card Technique
• The balanced scorecard is a management
system (not only a measurement system) that
enables organizations to clarify their vision and
strategy and translate them into action. It
provides feedback around both the internal
business processes and external outcomes in
order to continuously improve strategic
performance and results. When fully deployed,
the balanced scorecard transforms strategic
planning from an academic exercise into the
nerve center of an enterprise.

8. Balanced Score Card Technique

9. Balanced Score Card Technique
• The balanced scorecard suggests that we view
the organization from four perspectives, and to
develop metrics, collect data and analyze it
relative to each of these perspective.
1. The Learning & Growth Perspective
2. The Business Process Perspective
3. The Customer Perspective
4. The Financial Perspective

10. Strategy Mapping
• Strategy maps are communication tools used to tell a
story of how value is created for the organization. They
show a logical, step-by-step connection between
strategic objectives (shown as ovals on the map) 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 (the top two
rows).

11. Balanced Scorecard Software
• The balanced scorecard is not a piece of software.
Unfortunately, many people believe that implementing
software amounts to implementing a balanced
scorecard. Once a scorecard has been developed and
implemented, however, performance management
software can be used to get the right performance
information to the right people at the right time.
Automation adds structure and discipline to
implementing the Balanced Scorecard system, helps
transform disparate corporate data into information and
knowledge, and helps communicate performance
information.

12. Why Implement a Balanced
Scorecard?
• Increase focus on strategy and results
• Improve organizational performance by
measuring what matters
• Align organization strategy with the work
people do on a day-to-day basis
• Focus on the drivers of future
performance
• Improve communication of the
organization’s Vision and Strategy
• Prioritize Projects / Initiatives

13. World Class manufacturing
1. Assessment
2. Vision
3. Control
4. Simplification
5. Automation
6. World class

14. TQM Models
1. Deming Award Criteria
2. Malcolm baldridge national quality award
3. European foundation for quality management award
criteria
4. Australian business excellence award
5. Confederation Indian Industries (CII) award
6. TQMEX Model
7. Integrated model
8. Zaire Model

15. Deming Award Criteria
• 1 Deming prize awarded to individuals
• 2. Deming application prize awarded to
companies
• 3. Deming factory prize

16. Malcolm baldridge national quality
award
Criteria For Performance Excellence –Item Listing
• 1999 Categories/Items Point Values
• 1. Leadership 125
• 1.1 Organizational Leadership 85
• 1.2 Public Responsibility and Citizenship 40
• 2. Strategic Planning 85
• 2.1 Strategy Development 40
• 2.2 Strategy Deployment 45
• 3. Customer and Market Focus 85
• 3.1 Customer and Market Knowledge 40
• 3.2 Customer Satisfaction & Relationship 45
• 4. Information and Analysis 85
• 4.1 Measurement of Organizational Performance 40
• 4.2 Analysis of Organizational Performance 45

17. Malcolm baldridge national quality
award
• 5. Human Resource Focus 85
• 5.1 Work Systems 35
• 5.2 Employee Education, Training and Development 25
• 5.3 Employee well-being and Satisfaction Process management 85
• 6.1 Product and Service Processes 55
• 6.2 Support Processes 15
• 6.3 Supplier and Partnering Processes 15
• 7. Business Results 450
• 7.1 Customer Focused Results 115
• 7.2 Financial and Market Results 115
• 7.3 Human Resource Results 80
• 7.4 Supplier and Partner Results 25
• 7.5 Organizational Effectiveness Results 115
• TOTAL POINTS 1000

18. Malcolm baldridge national quality
award