BALANCE SCORECARD

BY:PRASHANT VERMA500022432BBA-LM VTH SEM.

Introduction

• The balanced scorecard (BSC) is a strategy performance

management tool not a software.

• It is supported by design methods and automation tools.

• It provides a framework that not only provides performance

measurements, but helps planners to identify what should

be done and measured.

• It can be used by managers to keep track of activities by

the staff within their control and to monitor the

consequences arising from these actions. BY: PRASHANT VERMA

CHARACTERSTIC

• Its focus on the strategic agenda of the organization .• The selection of a small number of data items to monitor• A mix of financial and non-financial data items.• It enables executives to truly execute their strategies.

BY: PRASHANT VERMA

THE FOUR PERSPECTIVE OF BALANCE SCORECARD

• What must we do to satisfy our financial contributors?

• Who is our customer?• What do our customers expect from us?

• What internal processes must we excel at to satisfy our fiscal obligations, our customers and the requirements of our mission?

• How must our people learn and develop skills to respond to these and future challenges?

Profit DrivenProfit Driven Mission DrivenMission Driven

• What must we do to satisfy our shareholders?

• What do our customers expect from us?

• What internal processes must we excel at to satisfy our shareholder and customer?

• How must our people learn and develop skills to respond to these and future challenges?

Financial Perspective

Customer Perspective

Internal Perspective

Learning & Growth Perspective

BY: PRASHANT VERMA

THE PROCESS: CONSTRUCTING A BALANCED SCORECARD

• 1.DEFINE A FEW GOALS IN EACH PERSPECTIVE

• 2.SELECT A FEW INDICATORS FOR EACH GOAL

• 3.CONSTRUCT THE METRICS

• A. IDENTIFY DATA SOURCES

• B. WRITE UP METHODS

• C. CHOOSE TARGETS

• 4.COLLECT DATA & REVIEW RESULTS

BY: PRASHANT VERMA

1. LEADERSHIP FROM THE TOP• CREATE THE CLIMATE FOR

CHANGE

• CREATE A COMMON FOCUS FOR CHANGE ACTIVITIES

• RATIONALIZE AND ALIGN THE ORGANIZATION

3. Unlock and Focus Hidden Assets– Reengineer Work Processes– Create Knowledge Sharing Networks

2. Make Strategy Everyone’s Job– Comprehensive Communication to

Create Awareness– Align Goals and Incentives– Integrate Budgeting with Strategic

Planning– Align Resources and Initiatives

4. Make Strategy a Continuous Process

– Strategic Feedback That Encourages Learning

– Executive Teams Manage Strategic Themes

– Testing Hypotheses, Adapting, and Learning

THE INGREDIENTS OF HIGHLY SUCCESSFUL BALANCED SCORECARD PROGRAMS

STRATEGY

Formulate

NavigateCommunicate

Execute

BY: PRASHANT VERMA

Strategy Mapping Strategy maps are communication tools used to tell how value is created for the organization. They show a logical, step-by-step connection between strategic objectives in the form of a cause-and-effect chain.

Generally speaking, improving performance in the objectives found in the Learning & Growth perspective (the bottom row) enables the organization to improve its Internal Process perspective Objectives (the next row up), which in turn enables the organization to create desirable results in the Customer and Financial perspectives.

BY: PRASHANT VERMA

WHY ARE COMPANIES ADOPTING A BALANCED SCORECARD?

• Change

Formulate and communicate a new strategy for a more competitive environment

•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

BY: PRASHANT VERMA

THANKYOU

BY: PRASHANT VERMA