Professional Documents
Culture Documents
Introduction
Introduction
The balanced scorecard, a concept for
measuring a company's activities in terms of
its vision and strategies, to give managers a
comprehensive view of the performance of a
business.
The strategic management system forces
managers to focus on the important
performance metrics that drive success.
Implementation
Implementing the scorecard typically
includes four processes:
Translating the vision into operational goals;
Communicate the vision and link it to
individual performance;
Business planning;
Feedback and learning and adjusting the
strategy accordingly.
Business Planning
Elements of an
Integrated Business
Planning Process
1. Sales Revenue
2. Demand
3. Supply
4. Profit based
Supply/Demand
Balancing
5. Management Review
A Comprehensive View of
Business Performance
A Comprehensive View of
Business Performance
Financial perspective
Customer perspective
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02/13/16
A Comprehensive View of
Business Performance
A Comprehensive View of
Business Performance
A Comprehensive View of
Business Performance
A Comprehensive View of
Business Performance
A Comprehensive View of
Business Performance
Learning and Growth Perspective measures describing the company's learning
curve - for example, number of employee
suggestions or total hours spent on staff
training.
A Comprehensive View of
Business Performance
Specific measures are chosen based upon the
organization's goals.
Typically organizations "get what they
measure" so care in creating measures and
revisiting the measures regularly is
recommended by most practitioners.
A Comprehensive View of
Business Performance
The method helps separate creation of
strategy from strategy implementation, which
can push power downwards while making the
leaders' jobs easier.
It can also help detect correlation between
activities.
A Comprehensive View of
Business Performance
For example, the process objective of
implementing a new telephone system can
help the customer objective of reducing
response time to telephone calls, leading to
increased sales from repeat business.
Processes
People
Mission
Mission Driven
Driven
Financial Perspective
Customer Perspective
Internal Perspective
Improve
Returns
Financial
Perspective
Improve
Operating
Efficiency
Broaden
Revenue Mix
Increase
Customer
Confidence in Our
Financial Advice
Increase
Customer
Satisfaction
Through Superior
Execution
Customer
Perspective
Internal
Perspective
Growth
Increase revenues, not just cut costs and
enhance productivity
Implement
From the 10 to the 10,000. Every employee
implements the new growth strategy in their
day-to-day operations
Understand
Customer
Segments
Develop New
Products
Cross-Sell the
Product Line
Shift
to
Appropriate
Channel
Increase
Employee
Productivity
Develop
Strategic
Skills
Access
to
Strategic
Information
Minimize
Problems
Provide
Rapid
Response
Learning
Perspective
Align
Personal
Goals
9 of 10 companies
fail to execute
strategy
2.
3.
4.
5.
6.
7.
8.
9.
10. Not
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