Putting the Balanced

8/8/2019 Putting the Balanced

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PUTTING THE BALANCED

SCORECARD TO WORK


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What is Balanced Scorecard?

Balanced scorecards is a collection of financial & non-financial

performance measure.

Balanced scorecard is a top-down process driven by the vision,

mission & strategy. Strategy is an organizations plan to look forward.

Illustrates patterns to examine past performance

Measures are chosen to track success

Targets are the level of performance needed


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Vision &

Strategy

Learning &

growth

InternalBusiness

process

Financial

perspective

Customers

Perspective

Balanced Scorecard FrameworkA FRAMEWORK OF BALANCED SCORECARD


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Strategy

Balanced

scorecard

A Good Balanced Scorecard Describes The Organizatinals Strategy


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60%oforganizations

dont link strategy &budgets

85% of management

teams spend less thanone hour per month onstrategy issues

STRATEGY

StrategicLearning Loop

BALANCEDSCORECARD


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Clarify and gain consensus about strategy

Communicate strategy throughout the organization

Align departmental and personal goals to strategy

Link strategic objectives to long term targets and annual

budgets

Perform periodic and systematic strategic reviews

Obtain feedback to learn about and improve strategy

WHAT BSC DO?


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ROCKWATERS STRATEGY AND SCORECARD

VISION: As our customers preferred provider, we shall be the industry leader. This our

mission

Rockwaters wanted to develop long-term partnerships with their suppliers rather than

choose suppliers based on low-price competition.

STRATEGY

Services that surpass needs

customer satisfaction

Quality of employees

Shareholder expectations.


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ROCKWATER STRATEGICOBJECTIVES TRANSLATED INTO TANGIBLE GOALS & OBJECTIVE

FINANCIAL PERSPECTIVE

Return on capital employed

cash flow

project profitability

profit forecast reliability

sales backlog

CUSTOMER PERSPECTIVE

pricing index

customer ranking survey

customer satisfaction index

market share

INTERNAL BUSINESS PERSPECTIVE

Hours with customers on new work

tender success rate

rework

safety incident index

INNOVATION & LEARNING PERSPECTIVE

% Revenues from new services

rate of improvement index

staff attitude survey

revenue per employee

Vision & strategy


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APPLE USES BSC AS A DEVICE TO PLAN A LONG TERM PERFORMANCE

CUSTOMERS SATISFACTION: apple felt it had to go beyond the other customer driven

company & develop its own independent surveys in order

to track its key market segments around the world.

CORE COMPETENCIES: user friendly, powerful software and effective distribution system.

EMPLOYEE COMMITMENT : surveys like how employee understand the companys strategy

MARKET SHARE: sales growth benefit, and also to attract and retain software developers to

apple platform

SHAREHOLDER VALUE : business is organized on a functional basis- sales, product design and

manufacturing. Scorecard helps management to assess these activities

and they can evaluate new business ventures.


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Metrics TemplateWhat information should be on your metrics pages?

Objective:__________________________________________________________________

MeasurementIntent:________________________________________________

MeasurementDefinition/Formula:______________________________________

____________________________________________________________________

Target:___________________________________________________________

Tracking/Reporting Responsibility:_____________________________________

Frequency ofUpdate:________________________________________________

UnitsofMeasure:___________________________________________________

Data elements and SourcesofData:__________________________________________

Progressor Gap Analysis:_____________________________________________

Who is Setsthetargets?____________________________________________


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Thank

You

EFFORT BY:

NIKHIL GUPTA

834

Putting the Balanced

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