Putting Balance Scorecard to Work
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Transcript of Putting Balance Scorecard to Work
8/6/2019 Putting Balance Scorecard to Work
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PPUTTINGUTTING THETHE BBALANCEDALANCED
SSCORECARDCORECARD TOTO WWORKORK-- SR-12
Submitted By:
Shikha Sharma
Roll No - 856
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Balanced ScorecardBalanced scorecard was proposed in the Jan ± Feb 1992
issue of HBR
It provides the executives with an comprehensive framework
that translates a companies strategic objective into a coherentset of performance measures
The scorecards provides the managers with four different
perspectives from which to choose (product, process, customer
and market development)
Balanced scorecard can serve as a focal point for which the
organization¶s efforts, defining and communication priorities to
managers, employees, investors and even customers
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USES OF BALANCED SCORECARD
Clarify and update strategy
Communicate strategy throughout the company
Align unit and individual goals with the strategy
Link strategic objectives to long term targets &
annual budgets
Identify and align strategic initiatives
Conduct periodic performance reviews to learnabout and improve strategy
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4
3-Clinic
2. Internal Processes2. Internal Processes
3. Customer 3. Customer
SatisfactionSatisfaction1. Innovation &1. Innovation &
LearningLearning
4. Financial4. Financial
Balanced ScorecardBalanced Scorecard -- PERSPECTIVES
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INTERNAL PROCESS PERSPECTIVE
Internal business processes
Social process
How well are processes running
Are there appropriate ties to institutional missionHours with customers on new work
INNOVATION & LEARNING PERSPECTIVE
Employee training
Individual and institutional improvement
Continuous learning mode
Focusing training funds on results
µLearning' is more than 'training¶
BBALANCEDALANCED SSCORECARDCORECARD -- PERSPECTIVES
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FINANCIAL PERSPECTIVE
Traditional need for financial data
Processing can be centralized and automated
Additional financial-related data, such as risk assessment
and cost-benefit data
CUSTOMER PERSPECTIVE
Customer focus
Customer satisfaction
Customer retentionChanging customer demands and needs
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ROCK WATER
A Global leader in ground water engineering and construction
Vision: providing the highest standard of safety and quality to
clients
Five Strategic elements were:
� high level of service,
� customer satisfaction,
� continuous improvement of safety,
� equipment reliability,
� responsiveness and cost effectiveness
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Rockwater senior management team transformed its
vision and strategy into balanced scorecard's four
sets of performance measures
Financial Perspective:Return-on-Capital Employed
Cash Flow
Project Profitability
Profit ForecastReliability
Internal Perspective:
Tender Success RateRework
Safety Incident Index
Performance Index
Project Closeout Cycle
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Customer Perspective:Pricing Index
Customer RankingSurvey Customer
Satisfaction Index
Market Share
Innovation and Learning Perspective:Revenue from New Services
Rate of Improvement Index
Staff Attitude Survey
Number of Employee Suggestion
Revenue per Employees
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APPLE COMPUTERS
Financial Perspective:�Shareholder value
Internal Perspective:�Core Competencies
Customer Perspective:�Market share
�customer satisfaction
Innovation and Learning
Perspective:
�Employee Attitudes
Apple computer development a balanced scorecard to focus senior management on a strategy that would expand discussions beyond gross
margin, return on equity and market share
The balance score card at apple serves as a planning device and not
as a control device
helped develop a language of measurable outputs for how to launch
and leverage programs
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THANK YOU