Balanced scorecard H & N
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This document provides an overview of the balanced scorecard method. It explains that a balanced scorecard translates business strategy into performance measures across four perspectives: financial, customer, internal business processes, and learning and growth. It lists goals and example measures for each perspective. The balanced scorecard helps companies implement strategy, align organization, link budget to strategy, and identify strategic initiatives. While it clarifies strategy, its disadvantages are that it is not a decision making tool and can include only lagging measures.
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Balanced scorecard H & N
- 1. A Presentation On Balanced Scorecard Submitted To : Mr .Pintu Vakariya Prepared By: Dhruv Nimesh P. 09 Sheldiya Heena H. 45 K.K.Parekh Institute of Management studies - Amreli M.B.A Sem - IV
- 2. What Is a Balanced Scorecard? • A Balanced Scorecard is method of implementing a business strategy by translating it into a set of performance measures derived from strategic goals that allocate rewards to executives and managers based on their success at meeting or exceeding the performance measures. • It was originated by Dr. Robert Kaplan (Harvard Business School) and David Norton .
- 3. 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 Implements the new growth strategy in their day-to-day operations.
- 4. Perspectives of Balanced scorecard : – Financial Perspective • How do look to shareholders? – Customer Perspective • How do customers see us? – Internal Business Perspective • What must we excel at? – Learning & Growth Perspective • Can we continue to improve & create value?
- 5. Translating Vision and Strategy: Four Perspectives Vision and Strategy Objectives Measures Targets Initiatives Financial Perspectives “To succeed financially, ho w should we appear to our shareholders?” Objectives Measures Targets Initiatives Learning And Growth Perspectives “To achieve our vision, how will we sustain our ability to change and improve?” Objectives Measures Targets Initiatives Customer Perspectives “To achieve our vision, how should we appear to our customers?” Objectives Measures Targets Initiatives Internal Business Process Perspectives “To satisfy our shareholders and customers, what business processes must we excel at?”
- 6. Financial Perspective GOALS MEASURES Growth Revenue growth Profitability Return on equity Cost leadership Unit cost
- 7. Customer Perspective GOALS MEASURES New products % sales from new products Responsive supply On-time delivery Preferred suppliers Share of key accounts Customer partnerships No of cooperative engineering efforts
- 8. Internal Business Perspective GOALS MEASURES Manufacturing excellence Cycle time Unit cost Yield Design productivity Engineering efficiency New product innovation Actual launch date vs. Plan
- 9. Learning & Growth Perspective GOALS MEASURES Manufacturing learning Process time to maturity Product focus % products representing 80% of sales Time to market New product introduction vs. competition
- 10. Advantages of Balanced Scorecard: • Clarifies strategy and make strategy operational. • Aligns the organization with strategy. • Links budget with strategy. • Identifies and align strategic initiative.
- 11. Disadvantages of Balanced Scorecard: • It is a scorecard not a decision making tool. • It can not helps used as a tool thought it can be help in assessing performance. • Lack of well-defined strategy. • Using only lagging measures.