The document discusses how companies like Satyam, Washington Mutual, Lehman Brothers, WorldCom, and Enron failed despite having brilliant employees and dedicated workforces. It introduces the Balanced Scorecard as a strategic measurement system that can align business activities with strategy and monitor strategic goals over time. The Balanced Scorecard uses four perspectives - financial, customer, internal processes, and learning and growth. It provides an example strategy map and organizational scorecard for a company to link objectives and measures across these perspectives. The process of implementing a Balanced Scorecard involves building consensus, gathering initial data, and establishing scorecards at the organizational, departmental, and employee levels.

1. Balanced Scorecard : Paving the Way towards a Brighter Future Jan 15, 2009 Yuvraj Gill – Presentation to PMO

2. What Is Common Satyam – Jan 2009 Washington Mutual – September 26, 2008 Lehman Brothers Holdings Inc. – September 15, 2008 WorldCom Inc. – July 21, 2002 Enron Corp. – February 12, 2001

3. What Is Common They all went down!!!!!!

4. What Is Common Leading Companies Brilliant Employees Dedicated Workforce Then why did they fail?????

5. At ********, what… does the present CEO want? Reaching the 1 mn mark! is the Competitive Advantage of this company? is important- Revenues, Market Share, Customer Relations?

6. At ********, What do the timesheets tell us? What does the appraisal form tell us? How is the performance of PMO measured against PS or Service? How are new projects introduced? How does Bruce decide what is important?

7. How are decisions made at ********? Based on financial data. But financials are lagging indicators – they show what happened in the past. Vision and strategy not actionable. What is needed is leading indicators . . .getting an idea of what may be ahead. Strategy not linked to team and individual goals.

8. The Balance Scorecard Balanced Scorecard is a strategic measurement-based system which provides a method of aligning business activities to the strategy, and monitoring performance of strategic goals over time.

9. The Way CUSTOMER & SHAREHOLDER NEEDS ON GROUND MISSION VISION STRATEGIC PERSPECTIVE OBJECTIVES STRATEGY MAP PERFORMANCE MEASURES THROUGH BSC

10. The Balance Scorecard

11. ******** Strategy Map GROWTH & LEARNING INTERNAL PERSPECTIVE CUSTOMER PERSPECTIVE FINANCIAL PERSPECTIVE NEW PRODUCT DEVELOPMENT INFORMATION SECURITY IMPROVEMENT OF PRODUCT QUALITY SURVIVAL & GROWTH PROFITABILITY EXPANSION OF INVESTMENT AREAS REINFORCEMENT OF MANPOWER CONTROL OF TECHNOLOGY CUSTOMER DELIGHT CUSTOMER PARTNERSHIP INCREASED CUSTOMER BASE MAXIMIZE BUSINESS VALUE

12. Organizational Scorecard ? ? SECURITY METRICS INNOVATION SUCCESS RATE/ NEW PRODUCT PROFITABILITY INFORMATION SECURITY NEW PRODUCT DEVELOPMENT INTERNAL TAP NEW MKTS ? ? NEW CUSTOMER ACCOUNTS NEW LONG TERM CONTRACTS FEEDBACK INCR CUSTOMER BASE CUSTOMER PART’SHIP CUSTOMER DELIGHT CUSTOMER ? ? TARGETS ? IMPROVE CFCR MVA ROCE SURVIVAL PROFITABILITY GROWTH FINANCIAL ACQUIRE TECH SKILLS COMMUNICATION TEAMWORK ATTRITION RATE PRODUCTIVITY CONTROL OF TECHNOLOGY REINFORCEMENT OF MANPOWER EXPANSION OF INVESTMENT AREAS GROWTH & LEARNING INITIATIVES MEASURES OBJECTIVE MARKET LEADER

13. The Process Phased Implementation Build commitment and consensus Gather initial data through group process and interviews Leadership team establishes first draft

14. The Process Organizational Scorecard - Departmental Scorecard - Employee Scorecard Leadership team reviews and finalizes lower scorecards