balanced scorecard, example and case study
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Balanced Balanced ScorecardScorecard
Balanced Scorecard: what is it ? .. (1)
At the highest level, the Balanced Scorecard (BSC) is a framework that helps organizations to translate strategy translate strategy into operational objectivesinto operational objectives that drive both behavior and performance.
Drs. Robert Kaplan (Harvard Business School) has subsequently published another book on the subject, called The Balanced Scorecard: You Can't Drive a Car Solely Relying on a Rearview Mirror.
Note that the Balanced Scorecard is a management management systemsystem — not a measurement system. Measurement is a key aspect of the Balanced Scorecard, but it is much more than just measurement; it is a means to setting and achieving the strategic goals and objectives for your organization.
Balanced Scorecard: what is it ? .. (2)
STRATEGY
HUMAN RESOURCES
BUSINESS UNITS EXECUTIVE TEAM
INFORMATIONTECHNOLOGY
BUDGETS AND CAPITAL INVESTMENTS
The Balanced Scorecard process allows an organization to align and focus all its resources on its strategy
Question:How can complex organizations achieve results like this in such short periods of time?
Question:How can complex organizations achieve results like this in such short periods of time?
Answer:
Alignment!
Answer:
Alignment!
Balanced Scorecard: the ingredients of highly successful
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
STRATEGY
FormulateFormulate
NavigateNavigateCommunicateCommunicate
ExecuteExecute
Balanced Scorecard: what is the focus ?They typically focus your company strategy around the following
areas: Financial PerspectiveFinancial Perspective – How do you look against the financial
objectives of the company’s owners Customer PerspectiveCustomer Perspective – How do you look to your current and
prospective customers? Internal Business PerspectiveInternal Business Perspective – What must you excel run
an effective business? Learning PerspectiveLearning Perspective – What must you organization learn to
improve your business?
You not only have to measure these critical four focus, but also set strategies, goals, objectives, and tactics to make them happen. And while you're at it, you have to make sure that your strategies and tactics are congruent. They have to work together and create a single thread, tying together in ways that make sense. This isn't an optional exercise; it's essential. The future of your business depends on it.
Balanced Scorecard: the positioning of a perspective framework
Balanced Scorecard: the positioning of a perspective framework .. (illustration)
Balanced Scorecard as a Centerpiece of Strategy
Strategic Maps and Balanced Scorecards: issues & metrics
Strategic maps help communicate your corporate strategy. And, balanced scorecards are a way to measure your strategic progress.
Strategic Maps and Balanced Scorecards: illustration – corp.
Sample: Value Budget
Sample: Value Creating Processes
Sample: Value Time Line
Case Study – corp.
Case Study – personal
Some of the Indicators of Good Balanced Scorecard
4. Financial LinkageEvery objective can ultimately be related to financial results
1. Executive InvolvementStrategic decision makers must validate and own the strategy and related measures
2. Cause-and-Effect RelationshipsEvery objective selected should be part of a chain of cause and effect linkages that represent the strategy
3. Balance between outcome and leading measures There should be a balance of outcome measures and leading measures to facilitate anticipatory management
5. Linkage of Initiatives and Measures: Each initiative should be based on a gap between baseline and target.
A good Balanced Scorecard will
“tell the story” of your strategy in
actionable terms.
Management Cockpit
A Dashboard—Management Information System for effective making decision
Information will be updated regularly and presented in the clarity, summary, and predetermined and sequenced basis
Management Cockpit
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