the balanced scorecard.ppt

8/10/2019 The Balanced Scorecard.ppt

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Prepared by Group 3:By :

Animesh K(PRN: 010)Nandhagopal R(PRN : 034)

Nimish G(PRN:035)Sandhya G(PRN : 044)

Shailendra K(PRN:104)Shubham G(PRN:106)

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The balanced scorecard is centered on fourperformance metrics or perspectives:

CustomersInternal processesFinancialLearning and growth

When implemented properly, each one of theseperspectives contains four subparts consisting of

Objectives

MeasuresTargetsInitiatives

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Objectives - what the strategy is to achieve in that

perspective

Measures - how progress for that particularobjective will be measured

Targets - refer to the target value that the companyseeks to obtain for each measure

Initiatives - what will be done to facilitate thereaching of the target

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There are four major categories that managers need toaddress when concerning their customers.

QualityAre there often recalls or problems with defects with our products.

TimeDo we save time by limiting defects and do we provide fast on timedelivery.

Performance and serviceDo we perform up to customers standards and do we provide fast andadequate services.

CostDo we try to minimize cost when dealing with ordering, schedulingdelivery, and paying for materials in order to lower cost of our productsto our consumers.

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With customer perspective managers and companies have tobe careful and make sure they are setting up their balancescorecard to help customers.

Examples of things that dont concern customers are profit

per customer, revenue per customer, and improve profit percustomer.

These objectives dont necessarily protean to the customerperspective but rather the companies perspective of thecustomer.

Managers need to take a step back and look at howcustomers perceive your company and what they want to getout of your company.

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Internal business process objectives addressthe question of which processes re the mostcritic l for s tisfying customers ndsh reholders

A firm must concentrate its efforts to excel in theseareas

Metrics based on this prospective allow themanagers to know how well their business isrunning and whether its products andservices conform to customer requirements

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CostThroughputQuality

Objective Specific Measure

Manufacturing excellence Cycle time, yield

Increase design productivity Engineering efficiency

Reduce product launch delays Actual launch date vs. plan

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The financial performance perspective of thebalanced scorecard addresses the question ofhow sh reholders view the firm nd whichfin nci l go ls re desired from theshareholders perspective

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Objective Specific Measure

Growth Revenue Growth

Profitability Return on equity

Cost Leadership Unit Cost

The table below outlines possible financial performance objectives andtheir metrics.

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Source: Operations Management Russell & Taylor 12


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Cost and timeIncomplete InformationEmployee Resistance

Ignoring conceptual issues.

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Balanced scorecard is a performancemanagement system that can be used in anysize organization.Allows management to measure financial andcustomer results, operations, andorganization potential.

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the balanced scorecard.ppt

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