copy of balanced scorecard templates

8/18/2019 Copy of Balanced Scorecard Templates

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Balanced Scorecard Project

Templates Menu

Templates are commonly used as a tool to assist in building the Balanced Scorecard.

For example, we can use a template to construct the Strategic Map for each Strategic

Theme. This Excel Worboo contains se!eral templates to help you de!elop a Balanced

Scorecard. The templates are clean, simple spreadsheets that you can modify easily.

"dditionally, the templates are arranged in se#uence according to the flow of the

de!elopment process. Templates $ through $% are used to help design the Balanced

Scorecard while templates $& through $' are for information purposes only.

Template Title (urpose

$ Basic checlist of strategic information you need to collect

) Timeline for Six Step *e!elopment (rocess

+ Basic checlist to follow in forming three team approach

% ritical issues that ore Team must complete

& Basic template for listing your strategic goals

- heclist to test that you ha!e a good set of strategic themes

Four layer map for plotting and connecting strategic ob/ecti!es

' Template for defining and testing each measurement

0 ompile attributes for each measurement in the Scorecard

$1 ompare outcome measures !s. dri!er measures

$$ 2uic checlist for determining targets

$) ompile selected attributes for programs

$+ 3rid for e!aluating programs against strategic ob/ecti!es

$% Summary of 4b/ecti!es 5 Measurements 5 Targets 5 (rograms 6

$& Summari7e ontrol !s. Strategic Management (rocess

$- Basic generic model for building ob/ecti!es and measurements

$ Summary of measurement types and examples$' 8oll out plan for organi7ational wide implementation of scorecard

6 this is the final balanced scorecard

(repared by9 Matt :. E!ans, (", M", FM

*ate (repared9 "pril )$, )11$

;ot sub/ect to copyright, feel free to modify or change these worsheets.

Forward<

(rocess =nputs heclist

*e!elopment Timeline

Team Formation heclist

ore Team heclist

Establish 3oals

Themes heclist

Strategic Map

Measurement *efinition

Measurement Summary

>ag >ead omparison

Target heclist

(rogram "ttributes

(rogram Selection 3rid

4 ? M ? T ? ( Summary

ontrol !s. Strategic

3eneric Model

Measurement Basics=mplementation (lan Example


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Development Timeline

Development Steps !eek "# $ % & ' ( ) * + , $- $$ $%

Step $9 Establish Strategic 3oals

Step )9 =dentify + to & Strategic Themes

Step +9 Build a Strategic Map

Step %9 *efine your Metrics D Targets

Step &9 =dentify your (rograms

Step -9 reate an =mplementation (lan

omments9

The six step de!elopment process will tae at least $) wees. 4nce completed,

the next step is to cascade out the Balanced Scorecard to other parts of the organi7ation basedon the =mplementation (lan. Three different types of teams are used within the process9

>eadership Team9 nderstands and articulates strategy, strongly supports the Scorecard.

ore Team9 Most important team since here is where most of the hard wor taes place ?

ollect and apply data, build maps, document the process, etc.

Measurement Team9 >ower le!el personnel who ha!e detail understandings about measurement.

CBac Forward<


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Team .ormation Checklist

/eadership Team 01pper level mana2ement3:

Team member is a strategic thiner and understands the o!erall business.

Team member is a ma/or supporter of the Balanced Scorecard @!isible to e!eryoneA.

Team member is !ery supporti!e of others in!ol!ed in the process @taes ownershipA.

Team member is effecti!e at communicating strategy to others.

Team member is well #ualified to mae decisions regarding themes, ob/ecti!es, etc.

Core Team 0Middle level mana2ement3:

Team member has a good o!erall understanding of the business.

Team member has good sills at inter!iewing and extracting big picture information

Team member has high creditability and respect with other Managers.

Team member can sell the Balanced Scorecard to other functional areas.

Team member wors well with upper le!el management.

Team member has good sills at documenting and presenting strategic results.Measurement Team 0/o4er level personnel3:

Team member has a !ery detail understanding of the functional area.

Team member can gather and analy7e detail data for clear communication to others.

Team member can comprehend strategic issues and connect the issue to his5her /ob.

Team member wors well with middle le!el management.

CBac Forward<

The following checlist can be used as a guide to forming the three types of teams that will dri!e thede!elopment of the Balanced Scorecard. Selecting the right people is extremely important to maing surethat the de!elopment process runs smoothly.


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Core Team Checklist

3ain a solid understanding of the de!elopment process behind the Balanced Scorecard.

ollect strategic information and do preliminary research to gain a strategic !iew of the business.

onduct one on one inter!iews with members in the >eadership Team 6

onsolidate strategic information into Strategic 3oals and Themes.

onfirm results with >eadership Team.

=dentify strategic ob/ecti!es and de!elop maps for each themeMeet with full >eadership Team to appro!e strategic maps.

6 try to understand ahead of time how members in the >eadership Team mae decisions. ritical

#uestions to as include9 What are the financial strategic ob/ecti!esG What are the ob/ecti!es behind

ser!ing customersG What processes are important to meeting financial and customer ob/ecti!esG

5vervie4:

The ore Team is the primary team for building the Balanced Scorecard. The ore Team will becollecting and gathering information from a series of inter!iews with the >eadership Team.

ore Team members will also refer bac to strategic information sources as listed in Template H$.

4nce the ore Team has an understanding of strategic issues, they will document the

components of the Balanced Scorecard9 Strategic 3oals, Strategic 4b/ecti!es, Maps, etc.

4ne of the biggest challenges for the ore Team is to finali7e a Strategic Map for each

Strategic Theme and obtain appro!al from the >eadership Team.

CBac Forward<

The ore Team is critical to the success of the Balanced Scorecard. The ore Team will need to executeon certain critical steps. These steps include the following9


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6sta7lish Strate2ic 8oals

Criteria Menu Criteria for Definin2 8oals Define 8oals

Maretplace

=ndustry Trends

Technology

ompetition

(ast (erformance

EI"M(>E ?< (ast (erformance We will increase re!enues by %1J o!er the next three years

Instructions:

The first de!elopment step for a Balanced Scorecard begins with a set of strategic goals. 3oals

need to be expressed in concrete terms for establishing an end?result or destination. 3oals will

ser!e as our anchor for dri!ing much of the remaining process in building our scorecard. 3oals

tend to !alidate the mission and !ision of the organi7ation. Kou can refer to past performance

within the organi7ation to establish a goal or loo at where the industry is mo!ing. ompetiti!e

benchmaring is also useful in establishing o!erall organi7ational goals.

*onLt forget to in!ol!e the right people in setting your goals ? people with !ision and broad

!iewpoints who understand the business. 3oals need to be agreed upon and clearly

communicated within the organi7ation before mo!ing forward with our next step in de!eloping

the Balanced Scorecard.

CBac Forward<


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Strate2ic Themes Checklist4nce you ha!e completed your strategic themes, see if they can pass the following checlist9

There are no more than fi!e strategic themes.

Strategic themes are realistic and achie!able within the organi7ation

Themes support and connect with strategic goals.

Themes con!ey a positi!e impact upon the organi7ation.

Themes place focus and direction on what is important.

Each theme is distinct and different.

Themes are strategic in scope and not tactical day to day.

Themes are consistent with the mission and !ision of the organi7ation.

Themes ha!e an impact on the financial ob/ecti!es of the organi7ation.

T=(S9

$ 8efer bac to the strategic information you collected per Template H $. This should

help you de!elop a set of strategic themes. =f these sources fail to clearly define

your strategic themes, then inter!iew upper le!el managers to determine thestrategic themes.

) Start by looing at internal perspecti!es within the organi7ation ? some common

themes should emerge, such as inno!ation in product de!elopment.

+ Themes can embrace se!eral strategic ob/ecti!es and co!er all four

perspecti!es with the Balanced Scorecard @Financial 5 ustomer 5

=nternal (rocesses 5 >earning D 3rowthA.

% Themes may run somewhat contrary to one another such as reduce the number

of new programs !s. increase re!enue growth. =f this occurs, mae sure e!eryone

has a clear understanding of what the organi7ation is trying to accomplish.

CBac Forward<


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*ate9 Balanced Scorecard Project

Strate2ic Map for Strate2ic Theme:

. i n a n c i a l

84= Insert a financial objective in this box Insert a financial objective i

EN"

8e!enue

Earnings

apital

ash Flow

C u s t o m e r 9 #

2uality Insert a customer objective in this box Insert a custo

Ser!ice

(ricing

Time

=mage

8elations

I n t e r n a l P r o c e s s e s 9 #(roduction Insert an internal objective in this box Insert an internal objective i

*eli!eryMareting

4perations

2uality ontrol

Ser!ice *ept Insert an internal objective in this box

8 D *

/ e a r n i n 2 9 #

Employee Insert a learning objective in this box Insert a learning objective i

:8 apital

Onowledge

Technology

Best (ractices

=ntangibles

Instructions:

(lace each strategic ob/ecti!e within this template, draw lines to conth b/ ti ithi thi K h ld h t t i f

CBac

=nstructions Example Blan Map


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Insert a financial objective in this box

Insert a customer objective in this box Insert a customer objective in this box

Insert an internal objective in this box Insert an internal objective in this box

n this box Insert an internal objective in this box Insert an internal objective in this box

Insert a learning objective in this box


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. i n a n c i a l

C u s t o m e r

n t e r n a l P r o c e s s e s


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/


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Financial

Customer

Internal Processes

3row the Business9 ustomer Ser!ice9

Maximizereturn on Assets

ProfitableGrowth

Leverage

Assets

InnovativeSolutions

Stable !ualit"Suppliers

$orm newpartnerships Cross %eliver"

of Services


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Learning & Growth

Mar)et Customer

%riven S)ills

*igh Lev+mplo"

Satisfact


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4ptimi7e ore Business9

ControlOperating Costs

#eliableService

Optimal Asset,tilization

ctivit" 'ase(


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ls ofeeon

+ffectiveLea(ership inManagement


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Measurement Definition

Step $: Define a measurement for each strate2ic o7jective:

Strategic Objective =>

Measurement to be used =>

Description of Measurement =>

Units of Measurement (!"!etc#

Update $re%uenc& => Monthly 2uarterly Kearly 4ther

Step %: Define the sources for the measurement:=nternal documents 5 reports

External documents 5 reports

Special studies

(rograms

*atabases

4ther

Step &: Define ho4 the measurement is derived and reported:

alculation 8e#uired9

"ssumptions in alculation9

"!ailability of *ata9

urrently "!ailable

8e#uires some research

8e#uires extensi!e research

;ot "!ailable at this time

CBac Forward<

n c y

e t o r tCBac Forward<

y


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; t t r i 7 u t e

E

p d a t e F r e # u e n

S e t s 4 b / e c t i ! e

* e g r e e o f F i t

*

e g r e e o f S u p p


Measurement Summary

. i n a n c i a l F$

F)

F+

F%

C u s t o m e r

$

)

+

%

&

I n t e r n a l

=$

=)

=+

=%

=&

=-

/ : 8

>$

>)

>+

>%

* e g r e e o f

8 e l i a b i l i t y

" b i l i t y t o

B e n c h m a r

8 e s p o n s i b i l i t y

> o c a t i o n

Summari7e the attributes associated with each

measurement in the Balanced Scorecard


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Measurement /a2 /ead Comparison

Strate2ic 57jective /a2 5utcome Measure /ead Driver Me

. i n a n c i a l

Most of &our financial

measures are outcomes

C u s t o m e r

Most of &our customer measures are outcomes

P r o c e s s e s

Mix of outcomes and drivers

/ : 8

Most of &our 'earning

ro)th measures )ill

drivers

omments9

" good balanced scorecard should consist of both outcome and dri!er type measurements

The two upper perspecti!es @ Financial and ustomerA will ha!e mostly outcome type

measurements. The lower two perspecti!es @=nternal (rocesses and >earning D 3rowthA

include some dri!er type measurements. The >earning D 3rowth perspecti!e may include

CBac Forward<


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asure

and

be

.

ill


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Tar2et ChecklistThe following checlist can be used as a guide for determining targets

Targets match up with measurements, one to one.

Targets ha!e been established for impro!ing current le!els of performance.

Targets are achie!able, but they may re#uire changes to existing processes.

Targets are #uantifiable so that the target communicates if the expected performance was met.

>ongterm Targets @+ to & yearsA stretch the organi7ation towards its strategic goals.

>ongterm Targets are established first before short term targets.

Financial related targets are established first before non financial targets.

Sources for Determinin2 Tar2ets:

Strategic goals

=ndustry benchmars 5 best practices

=ncremental impro!ement to existing performance le!els 6

;ew baseline must be established

4ther

4ther

6 =dentify performance gaps, areas where the organi7ation must reach a higher le!el9

CBac Forward<

$ ) + % &

1

$1

)1

+1

%1

&1-1

/on2term 8ap in Performance

Target8e!enues

urrentTrend

Time .rame 0( years3


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Basic Pro2ram ;ttri7utes

(rogram ;ame9 Estimated Start *ate9

Estimated Stop *ate9

(rogram "ccountability9 (rogram Sponsors9

8esources 8e#uired9 @(ersonnel, Funding, "ssetsA

( r o

g r a m B e n e f i t s

Total Benefit Kear $ Benefit Kear ) Benefit Kear + Benefit

8e!enue

ost

Efficiency

(roducti!ity

*escribe impact on strategic ob/ecti!es9

=ssues 5 omments 5 Footnotes

omments9

The selection of programs should be based on a well established process so as to ensure

CBac Forward<

;ature ofBenefit


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CBac Forward


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P r o 2 r a m

* r o g r a m + a m e


















Plot Impact of Pro2rams a2ainst

all Strate2ic 57jectives

Perspective Strate2ic 57jective

Financial Most programs are usuall& not related to supporting financial results

,herefore! &ou ma& not have an& mar-s at the top $inancial perspective level.

ustomer

=nternal (rocesses

CBac Forward<

=nstructions

B l d S d P j t

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*ate9 Balanced Scorecard Project

Summariear $ >ear % >ear &

. i n a n c i a l

Insert financial objective Insert financial measurement ,arget ,arget ,arget







C u s t o m e r 9 #

Insert customer objective Insert customer measurement ,arget ,arget ,arget







I n t e r n a l P r o c e s s e s 9 #

Insert internal process objective Insert internal process measurement ,arget ,arget ,arget

Insert internal process objective Insert internal process measurement ,arget ,arget ,arget Insert internal process objective Insert internal process measurement ,arget ,arget ,arget








/ e a r n i n 2 9 #

Insert learning / gro)th objective Insert learning / gro)th measurement ,arget ,arget ,arget







CBac Forward<

Footnote

Since financial isan& formal progr*erspective.

0riefl& describe tcustomer related

0riefl& describe tinternal process

0riefl& describe tlearning / gro)t

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Nision ?< 3oals ?< Themes


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Nision < 3oals < Themes

Financial (erspecti!e 4b/ecti!es

Measures

Targets

(rograms

ustomer (erspecti!e 4b/ecti!es

Measures

Targets

(rograms

=nternal (erspecti!e 4b/ecti!es

Measures

Targets

(rograms

>earning (erspecti!e 4b/ecti!es

Measures

Targets

(rograms

Strategic *ecisions

Nision ?< 3oals ?< Themes

Balanced Scorecards

What financial results arere#uired for meeting the

expectation of our shareholders

What customer needs must wesatisfy for meeting shareholder

expectations

What processes must we deli!eron for meeting customer and

shareholder expectations

What organi7ational !alues are

critical for meeting our strategicgoals and ob/ecti!es

Dou7le /oop /earnin2 4ith the Balanced Scorecard: Strate2ic /earnin2and 5perational /earnin2

E p d a t e a n d r e ! i s e

t h e s t r a t e g y

F

e e d b a c f r om

s c or e c ar d

4b/ecti!es ?< Measures ?<Targets ?< (rograms

t i n t o

a i n g

, om

Balanced Scorecard Project CBac Forward


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8eneric Model

The 3eneric Model can be used to help /ump start your process for setting ob/ecti!es and measurements.

.inancial Perspective 9 Select measurements 7ased on one of three sta2es:

8e!enue 3rowth 4perating =ncome ash Flows

(ositi!e Earnings 8eturn on apital Economic Nalue "dded

Sales 3rowth 8ate 3ross Margins ash Nalue "dded

Customer Perspective 9 Select o7jectives 7ased on values provided to customers:

C ? ? ? ? ? ? ? Nalue "ttributes ? ? ? ? ? ? ? < =mage 8elationships2uality (rice Time Function

Internal Processes Perspective 9 Select o7jectives from three cate2ories:

=nno!ation (rocess 4perating (rocess Ser!ice (rocess

? ;ew products and ser!ices ? Efficient production ? Ser!ice after the sale

? ;ew features existing products ? Timely deli!ery ? 8esol!e problems first time

? ni#ue solutions ? 2uality products ? (roacti!e D Timely Followup

? Fast turnaround to maret ? ost management ? Flexibility 5 (ersonal Touch

/earnin2 8ro4th Perspective 9 Select o7jectives from three cate2ories:

Employee ompetencies Onowledge D Technology ompany ulture

? =mpro!e employee satisfaction ? >e!erage technologies ? Empower the worforce

? 8etain ey personnel ? =mplement best practices ? Set accountability standards

? :igh employee producti!ity ? (rotect critical assets ? "lign employees to ob/ecti!es

? ontinuous training ? Easy access to information ? :igh morale D moti!ation

? >e!erage core competencies ? ross functional teams

CBac Forward<

*efined

Early Stage ompany @:igh3rowthA

Sustainable Stage ompany@Modest 3rowthA

Mature Stage ompany @Slow3rowthA

Mareting D Selling of products 5 ser!ices 4pera?


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g g p

*istribution of products and ser!ices to customers

Ser!ice after the sale

;eeds of customer ha!e been satisfied

Basic definition of the 3eneric Model9

4perational

Excellence

ustomerSer!ice

3eneric model refers to the fact that most outcomes are generic or the same forbusinesses. Things lie customer ser!ice, operational excellence, profitability, and aproducti!e worforce. These are common to almost e!ery business. :owe!er, unlie theoutcomes, dri!ers are uni#ue to each and e!ery organi7ation. Therefore, the genericmodel applies to outcomes, but not necessarily the dri!ers that enable outcomes.


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Balanced Scorecard Project CBac Forward


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j

Measurement Basics

" #uic and basic understanding of different aspects of measurement.Measurement Form "d!antage *isad!antag

;umbers Simple and easy to understand 4nly as good as the strategic ob/

=ndex "llows combining se!eral measurements :ard to understand what is happe

(ercentages 3ood measure for time span May be not be used correctly

8atings 3ood measure for #ualitati!e information an be sub/ecti!e on how it was

8atios Measures critical relationships May re#uire additional analysis to

8anings lose gaps for top raned companies ;ot appropriate for lower raned

Measurement Type "d!antage *isad!antag

4utcomes 4b/ecti!e and easy to capture Focused on past, not current

*ri!ers (redicti!e and leading the organi7ation *ifficult to deri!e and support

Examples of 4utcomes D *ri!ers9

4utcome @>aggingA Measurements *ri!er @>eadingA Measurements

(ercent 3rowth in 8e!enues 8e!enue Mix

8eturn on apital ompetiti!e pricing !ariance

ustomer Satisfaction 8ating Training hours completed

(roduct ontribution Margin :ours spent with customers


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e

cti!e

ning

eri!ed

reach conclusion

ompanies

e


6@ample: Implementation Plan for 6ntire 5r2ani


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6@ample: Implementation Plan for 6ntire 5r2ani

copy of balanced scorecard templates

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