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Balance Scorecard

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Implementing a Balance scorecard in an organization to help vision realization.

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Balance Scorecard

  1. 1. Balanced Scorecard : Paving the Way towards a Brighter Future Jan 15, 2009 Yuvraj Gill – Presentation to PMO
  2. 2. What Is Common <ul><li>Satyam – Jan 2009 </li></ul><ul><li>Washington Mutual – September 26, 2008 </li></ul><ul><li>Lehman Brothers Holdings Inc. – September 15, 2008 </li></ul><ul><li>WorldCom Inc. – July 21, 2002 </li></ul><ul><li>Enron Corp. – February 12, 2001 </li></ul>
  3. 3. What Is Common <ul><li>They all went down!!!!!! </li></ul>
  4. 4. What Is Common <ul><li>Leading Companies </li></ul><ul><li>Brilliant Employees </li></ul><ul><li>Dedicated Workforce </li></ul><ul><li>Then why did they fail????? </li></ul>
  5. 5. At ********, what… <ul><li>does the present CEO want? Reaching the 1 mn mark! </li></ul><ul><li>is the Competitive Advantage of this company? </li></ul><ul><li>is important- Revenues, Market Share, Customer Relations? </li></ul>
  6. 6. At ********, <ul><li>What do the timesheets tell us? </li></ul><ul><li>What does the appraisal form tell us? </li></ul><ul><li>How is the performance of PMO measured against PS or Service? </li></ul><ul><li>How are new projects introduced? </li></ul><ul><li>How does Bruce decide what is important? </li></ul>
  7. 7. How are decisions made at ********? <ul><li>Based on financial data. </li></ul><ul><li>But financials are lagging indicators – they show what happened in the past. </li></ul><ul><li>Vision and strategy not actionable. What is needed is leading indicators . . .getting an idea of what may be ahead. </li></ul><ul><li>Strategy not linked to team and individual goals. </li></ul>
  8. 8. The Balance Scorecard <ul><li>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. </li></ul>
  9. 9. The Way CUSTOMER & SHAREHOLDER NEEDS ON GROUND MISSION VISION STRATEGIC PERSPECTIVE OBJECTIVES STRATEGY MAP PERFORMANCE MEASURES THROUGH BSC
  10. 10. The Balance Scorecard
  11. 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. 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. 13. The Process <ul><li>Phased Implementation </li></ul><ul><li>Build commitment and consensus </li></ul><ul><li>Gather initial data through group process and interviews </li></ul><ul><li>Leadership team establishes first draft </li></ul>
  14. 14. The Process <ul><li>Organizational Scorecard - Departmental Scorecard - Employee Scorecard </li></ul><ul><li>Leadership team reviews and finalizes lower scorecards </li></ul>

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