The document discusses balanced scorecards and how they can be used with IT. It provides the following key points: 1. A balanced scorecard is a strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. 2. It measures an organization's performance across four perspectives: financial, customer, internal business processes, and learning and growth. 3. An example is provided of how Taco Bell uses the four perspectives in its balanced scorecard. 4. IT governance is also discussed as distinguishing governance from IT management and using a matrix to map how key IT decisions are made.

1. BALANCED SCORECARDS
AND
IT IN ONE PAGE
Presented By:
Sumera Aijaz
14030141096

2. The Balanced Scorecard: Measures That Drive
Performance
What is a BSC ?
• Strategy Management framework Strategy Holder
• The measurements on a balanced scorecard should consist of a linked set
of objectives and measurements that are consistent and mutually
reinforcing
• Explicit the relationships among objectives and measures. The chain of
cause and effect
The Need for BSC
• The BSC lets executives see whether they have improved in one
area at the expense of another
• Survival was measured by cash flow, success by quarterly sales
growth and prosperity by increased market share by segment and
return on equity.
• Backward-looking focus
• Financial performance is the consequence of operational actions
• Strategy and vision, not control, at the center.
• Keeps companies looking—and moving—forward instead of
backward.

3. How do customers see us?
What must we excel at?
Can we continue to improve
and create value ?
How do we look to shareholders?

4. Balanced Score Cards – 4 perspectives
The customer's perspective –
• Time , Quality , Performance , Service
and Cost(Eg: Lead time , defect level ,
on-Time Delivery)
• Create Value
The internal business perspective –
• Focus on those critical internal
operations that enable them to
satisfy customer needs.
• Processes, decisions, and actions
occurring throughout an
organization.
The innovation and learning
perspective.-
• An organization's ability to innovate,
improve, and learn ties directly to its
value as an organization.
• Create more value for customers, and
improve operating efficiencies
continually
The Financial perspective.-
• Whether the company’s strategy,
implementation, and execution are
contributing to bottom-line
improvement.
• Profitability, growth, and shareholder
value.
Kaplan and Norton recommend that managers gather information from four
important perspectives:
Objectives ,Measures ,Targets

5. BSC 4 Perspectives Applied-
Taco Bell

6. 1
2

7. 3
4

8. IT Governance on One Page
Distinguishes governance from IT management.
• IT management is the daily decision making and implementation
activities around the firm’s use of IT.
• Governance identifies who will make key IT decisions and how will
they be held accountable.
• Matrix representing IT Governance on one Page mapping how key
decisions are made.
• 4 Objectives
• 5 Major Decisions
• 6 Major archetypes

11. Six Decision Making Archetypes
IT Governance On One Page

12. CONCLUSION
IT Governance patterns of leaders :
• Profit as measured by return of Equity , ROI and Profit Margin –
Centralized Approach(Business and IT Monarchies and Federal)
• Asset utilization as measured by ROA- Hybrid approach -
Balance between Governance for profitability and governance
for growth (Dupoly)
• Growth as measured by percentage change in revenue per
annum - Decentralized approach - Innovation and Time to
market – Feudal, Anarchy)