Balanced Scorecard

VKR

Balanced Scorecard
BSC is a strategic management support system for measuring vision and strategy against business and operating unit level performance. Suggested by Dr. Robert S Kaplan and Dr. David P Norton of Harvard Business School

Perspectives in BSC
Financial perspective: Strategy for growth, profitability and risk when viewed from shareholders/owners perspective. The external relations perspective is related to strategy for creating value and differentiation through the perspective of the customer. The internal business process perspective reflects strategic priorities among processes according to their contribution to customer and shareholder satisfaction The learning and growth perspective focusses on organizations priorities for fostering change, innovation and growth.

Strategy map

Project Arrow(Indian Postal Service)

Largest network in the world with 1,50,000 post offices Over and above 5 lakh employees Unsatisfactory status Project arrow to transform Indian Postal Service Jyothiraditya Scindia wanted to transform India posts in to a world class organisation

Vision- Indian postal Department to be Window to the world for aam aadmi. Services with global benchmark at the lowest cost Strategy: Get the core right Modernise the look and feel

BSC to India Posts

Financial perspective IPS should stress on cash flows, it should opt for revenue growth it can do the same by reaching new customers and markets, changing the product and service mix. And reprising products and services. Measures to customise the services to the targeted customers

 Internal process perspective The measures should be selected in such a manner as to maximise customer satisfaction and achieve financial objectives. Learning and Growth perspective Infrastructure required to build to facilitate long term growth

Financial perspective
Objectives Broaden revenue mix Measures Sales growth Initiatives Tie-ups with other banks leveraging its wide reach Leveraging IT to offer wider and innovative services Increasing the quality of mail delivery service Multitasking by post men Postmen to market the products

Focus on retaining market share on the core business Lower operating costs

Market share in core EBIT, ROCE

Increase the personnel productivity

Revenue per employee

Customer Perspective
Objectives Improve speed and reliability of mail delivery service Measures No of undelivered mails per day Initiatives Provide tracking services through internet Launch of pickup mail services from the premises of the customer Increase cash withdrawal limit to Rs. 5,000 Reduce time to settle deceased claims Modernised look and feel at the post office Standardised ambience and theme across the country Suitable training provided to employees for better customer handling

Increase service levels for other business

Time to settlement

Enhance customer experience at the post offices

Customer satisfaction surveys Reduction in customer complaints

Increase the overall customer satisfaction

Post masters compliance to daily check list

Internal Processes Perspective

Objectives Improve productivity get the core right Increased usage of IT to increase operational efficiency Measures Initiatives Process cycle time for mails Revision mail arrangements Streamlining pre delivery process Expenses Ratio Digizaliation of manual records Revisiting savings bank operations process System backup and daily monitoring of network connectivity and error reporting Involving lower level employees by greater interaction with top management Supervise and monitor postmen performance Codify and tract postmasters compliance to the daily checklist prescribed

Introduce suitable feedback

Employee surveys

Revamp performance appraisal

Profit per employee

Learning and Growth Perspective

Objectives Upgradation of staff competencies related to customer handling Upgradation of staff related to IT infrastructure Measures Training scores Initiatives Suitable training provided to to the employees for better customer handling Training on the use of new equipment's and computers

% increase in the use of new products

 Quality services to the Citizens.

Project Arrow was initialized in May 2008. The objective of this Project is to make post offices a friendly place for any citizen and improve the quality of services. The Project was taken up in three phases:
Phase I Pilot 50 post offices. Phase II 450 offices

Phase III 500 offices.

Project focus
Modernize the look and feel-Get the core right Branding Mails Technology Savings Bank Human resources Remittances Infrastructure Office Service level.