really simple balanced scorecard 1211714549936136 8
TRANSCRIPT
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ReallySimple
BalancedScorecard
By Samurai
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Textbook examples ofBalanced Scorecard
are complex
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Manager’s Toolbox example ofBalanced Scorecard
is simple
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1 A4 to prepare
1 slideto communicate
1 A4to execute
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insert
¥€$
:-)
Learningperspective
Processperspective
Customerperspective
Financialperspective
Acquiring knowledge
Summarizing knowledge
Customer satisfaction
Profitable growth
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Textbooks say“Ultimately all causal paths lead to financial measures.”
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Ultimately all causal paths lead to financial measures
Financial perspective
Customer perspective
Process perspective
Learning perspective
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That’s an uphill battle!
Financial perspective
Customer perspective
Process perspective
Learning perspective
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That’s an uphill battle!
Financial perspective
Customer perspective
Process perspective
Learning perspective
Been there,done that!
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They stumbled on learning
Financial perspective
Customer perspective
Process perspective
Learning perspective
With jeans, sneakers & ¥100 raincoatsIn really, really, really bad hail storm1 hour to nearest shelter
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The fundamental questions
Financial perspective
Customer perspective
Process perspective
Learning perspective “To achieve our vision, how will we sustain our ability to change and improve?”
“To satisfy our shareholders and customers, what business processes must we excel at?”
“To succeed financially, how should we appear to our shareholders?”
“To achieve our vision, how should we appear to our customers?”
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To achieve our vision, how will we sustain our ability to change and improve?
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Manager’s Toolboxturns the perspectivesupside down
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insert
¥€$
:-)
Learningperspective
Processperspective
Customerperspective
Financialperspective
How will we sustain our ability to change and improve?
What business processes must we excel at?
How should we appear to our customers?
How should we appear to our shareholders?
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Ultimately all causal paths start from
learning perspective
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Learning perspective
Process perspective
Customer perspective
Financial perspective
Ultimately all causal pathsstart from learning perspective
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Coming downhill is fun!
Learning perspective
Process perspective
Customer perspective
Financial perspective
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Customer perspective
Actually it is a child's play!My son
and my daughterready to showwhat they’ve
learned.
Learning perspective
Process perspective
Customer perspective
Financial perspective
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And business is down there“Let’s take a break
down there!” Learning perspective
Process perspective
Customer perspective
Financial perspective
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Textbook says Balanced Scorecard
is a management system
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And that’s true!
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Balanced Scorecard is a
ManagementSystem
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Not just a measurement system
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You do not just measure your heart beat
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You use the heart rate monitor
to manage your exercise
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In order to
Last longer
Feel good
Improve fitness
Control weight…
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… and to improve learning
Rule #1:
Exercise boostsbrain power
Dr. John MedinaBrain Rules
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Textbooks say“Strategy map helps
to communicate strategy.”
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?
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Does this really help to communicate their strategy to you?
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The Chip brothers call it Curse of Knowledge
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Trying to tell you everything about every possible strategy, with perfect accuracy, in one page.
The Chip brothers call it Curse of Knowledge
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Trying to tell you everything about every possible strategy, with perfect accuracy, in one page.
The Chip brothers call it Curse of Knowledge
Is not
made to stick
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Make it simple, find the core of the idea, strip the idea down to its most critical essence.
You need to
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Make it simple, find the core of the idea, strip the idea down to its most critical essence.
You need to
fiveothersticky
elements+ =
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First we need to go back to the basics
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Mission statement
tells you what the company is now
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“We’re on a mission from God!”
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“We’re on a mission from God!”
Driven by their mission
“The Catholic orphanage they grew up in needs to pay $5,000 taxes in 11 days, or else it will be closed.”
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“We’re on a mission from God!”
They’ll never get caught
bythe police,
ex-girlfriend,Country Bob,
Good Old Boys,Illinois Nazis,more police,
National Guard,SWAT teams.
Driven by their mission
“The Catholic orphanage they grew up in needs to pay $5,000 taxes in 11 days, or else it will be closed.”
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Vision statement
outlines what a company wants to be
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“Imagine all the people living life in peace!”
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If you imagine,can you hear it?
Well communicated Vision
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Strategy
is a long term plan of action designed to achieve a particular goal, most often "winning"
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A map is handy to communicate(=Strategy map)
how you plan to get(=Strategy)
from where you are(=Mission)
to where you want to be(=Vision)
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Now, let’s make the Strategy map
for Manager’s Toolbox
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1) Take an A4 paper
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2) Draw a table
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3) Fill in the key words
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4) Fill in the Mission
Life-long learning
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5) Fill in the Vision
Improved management and leadership skills
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6) Fill in the Strategy To internalize and summarize the knowledge
I need during my management career.
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7) Draw the Strategy Map
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Does this communicatemy strategy to you?
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That was just the beginning…
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Balanced Scorecard is amanagement tool
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And should be used in management meetings
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8) Measures are checked
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Oops, the measures…
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Let’s take just one example,but a typically difficult one
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Customer satisfaction
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I am the only customer toManager’s Toolbox and
I will be satisfied if
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People visit my blogand leave comments
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People visit my blogand leave comments
here
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People visit my blogand leave comments
view my presentations and download them
or
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People visit my blogand leave comments
view my presentations and download them
or
here
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People visit my blogand leave comments
view my presentations and download them
or
here
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Where were we?
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Balanced Scorecardis used in
management meetings
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8) Measures are checked
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9) Achievement is checked
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10)Trend is followed
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And last but not least
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11)Actions are agreed
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8) And again in next meeting
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That is Manager’s Toolbox’s
ReallySimple
BalancedScorecard
By Samurai
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1 A4 to prepare
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1 slide to communicate
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1 A4 to execute
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But you need
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100% Management commitmentto build and use amanagement system
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I have 100% management supportand I’ve read these books
This is a good textbook!
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by Samurai
http://managerstoolbox.blogspot.com/
Good luck on building and usingReally Simple Balanced Scorecard!
Send me an email and I’ll send you the
step-by-step excel template
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PhotosHikers at Mt Fuji & children skiing, my personal photos
Samurai sword, Pulse, Trekking, You are here –map, Tool, Meeting room & Smiley from Stock.xchng http://www.sxc.hu/
Mt Fuji, http://www.sxc.hu/photo/907490
Ski resort, http://www.flickr.com/photos/buck82/94755839/
Snow boarders, http://www.flickr.com/photos/altus/370571191/
Heart rate monitor, http://www.flickr.com/photos/publicenergy/254413431/
Brain rules, http://www.brainrules.net/mediakit
Lennon’s Imagine http://www.flickr.com/photos/jeffpearce/473580035/
Manager, http://www.sxc.hu/photo/708280
DVD & book covers, www.amazon.com
Wikipedia, www.wikipedia.org
Exercise zones, www.heartratemonitorsusa.com
Mt Fuji routes & Hakuba ski map, google images (couldn’t find anywhere else)
Complex strategy map, www.valuebasedmanagement.net