BSC Case Studies

BSC

Case Studies

John KYRIAZOGLOU, CICA, B.A (Hon.)

November 2016

Summary

This book describes 4 examples of using the Balanced Scorecard

Framework by two private sector companies and two public

organizations.

These case studies are:

1. Case Study 1: Implementation of Strategic Controls with the

BSC model for a Bank


BSC for a Petrochemical Refinery company


BSC for a Public Energy Utility


BSC for a Public Sector Organization (Ministry)

For more examples, see: Robert S. Kaplan & David P. Norton:

The Strategy–Focused Organization, Harvard Business School

Press, 2001.

Case Study 1: Implementation of Strategic Controls

with the BSC model for a Bank

This case study is based on the Balanced Scorecard Model and it

describes the strategic controls for a Banking Corporation, for the

four classical BSC perspectives, as defined by Kaplan & Norton:

Financial; Customer; Internal Process and Innovation & Learning.

FINANCIAL Perspective

Strategic Objectives Strategic Controls (Measures)

Financial performance Stock Price

Cash Flow

Profit/Business Function

Total Profit/Total Revenue

ROI: Return on Investment

ROCE: return on capital employed

CUSTOMER Perspective


Increase Customer Satisfaction Customer Retain Ratio

Customer Satisfaction Survey

INTERNAL PROCESS Perspective


Innovative Products/Services

Creation

Acceptance of new

products/services

New products/service cycle time

Improve Customer understanding Time spent with the Customers

INNOVATION & LEARNING Perspective


Strategic Information Creation Strategic Information Availability

Improve Employee Skills Number of specialised seminars

Cost of Seminars

Strategic Skills Availability

Case Study 2: Implementation of Strategic Controls

with the BSC for a Petrochemical Refinery company


describes the strategic controls for a Petrochemical Refinery

Corporation, for the four classical BSC perspectives, as defined by

Kaplan & Norton: Financial; Customer; Internal Process; and

Innovation & Learning.

FINANCIAL PERSPECTIVE

Strategy: Financial Development


Maximize the performance of used

capital

ROCE: return on capital employed

Improve the use of current assets Cash flow

Increase profit Net profit

CUSTOMER PERSPECTIVE

Strategy: Customer satisfaction


Continuous customer

improvement

Market share

INTERNAL PROCESS PERSPECTIVE

Strategy: Improve operations and quality


Improve plant operational

performance

Hours of non-programmed

operational disruptions per year

Production of goods and services

according to schedule and quality

specifications

Number of orders in error per year

Improve plant working conditions Number of accidents per year

Improve the management of

warehouse materials

Materials used per product

Cost of not moved warehouse

items

Cost of not used warehouse items

INNOVATION & LEARNING PERSPECTIVE

Strategy: Ready and motivated employees


Improve employee working

climate

Employee satisfaction survey

Improve employee skills Number of seminars

Cost of seminars

Case Study 3: Implementation of Strategic Controls with the

BSC for a Public Energy Utility


describes the strategic controls for a Public Energy Provision

Utility listed in various Stock Exchanges, for the four classical

BSC perspectives, as defined by Kaplan & Norton: Financial;

Customer; Innovation & Learning; and Internal Process.

FINANCIAL PERSPECTIVE

Strategy: Manage costs


Improve operational performance Total cost of fuels consumed by

unit of energy product sold

Improve used capital ROI and ROCE


Strategy: Build customer loyalty


Keeping and increasing customers Number of sales per month

Improve reliability Number of disruptions per month

INNOVATION & LEARNING PERSPECTIVE

Strategy: Build employee commitment


Improve security of work Number of accidents per year

Improve personnel skills % of employees who have

achieved their annual targets

Increase personnel commitment Personnel commitment on the

basis of surveys undertaken


Strategy: Build the business


Maintain investor confidence Net revenue

Case Study 4: Implementation of Strategic Controls with the

BSC for a Public Sector Organization (Ministry)


describes the strategic controls for a Public Organization (e.g.,

Ministry), for the four public sector BSC perspectives, as defined

by Kaplan & Norton: Results, Customer, Internal Process, and

Personnel Development.

RESULTS PERSPECTIVE

Strategy: Effective support of Government Policy


Improve support of Government

Policy

Acceptance of recommendations

made

Number of recommendations per

year

Response time

Reduce operational cost % cost reduction per year


Strategy: High quality services to citizens and enterprises


Improve service Response time, errors, complaints,

etc.

Number of procedures improved


Strategy: Improved procedures and systems


Improve systems development Implementations on time and budget

Systems accepted and put to

operation

Number of quality errors

Improve systems operation Operational errors

Improve communication with

‘customers’

Number of press announcements

Number of WEB interactions

Number of customer meetings held

Number of customer feedback

surveys

PERSONNEL DEVELOPMENT PERSPECTIVE

Strategy: Effective improvement of working conditions


Objective personnel evaluation Personnel complaints resolved

Effective personnel training Training hours, seminars, cost

% personnel satisfied with the

training taken

DISCLAIMER

Any mention or reference of organizational entities, commercial

products, standard methodologies, standards, handbooks, guides,

guidelines, policies, forms, procedures, documents, processes,

models, software, tools, plans, measures, techniques, ideas,

declarative statements, etc., (collectively termed ‘objects’), within

this book, is solely done for information and educational purposes.

This mention or reference does not imply any recommendation or

endorsement by the authors and publishers of this book that these

‘objects’ are best suited or even at all relevant for the purposes of

any organization (public, private, etc.). All such organizations

should independently evaluate and assess these ‘objects’ before

determining whether to customize and use these ‘objects’ in their

unique corporate operating environment and socio-economic

context.

BSC Case Studies

Economy & Finance

Transcript of BSC Case Studies