Professional Documents
Culture Documents
Introduction
Balanced Scorecards provide a framework for communicating
When people are asked about strategy, they reach for their balanced
scorecard.
HOW TO BEGIN.!!
Begin with strategic plan what things are
to our customers
Define the processes how will we deliver these
Strategic Goals
The first components of any strategy are goals.
Strategic goals should fit with the vision and mission of the
organization.
Attributes of a Goal
Should be a very short statement Directly relates to the mission Broad in scope Covers long time period (such as 3 years) Examples:
- Improve Customer Service - Leverage Core Competencies - Develop more innovative products
Strategic Objectives
Once first anchor (goals) are established, develop a set of
strategic objectives.
Strategic objectives define what actions must be taken to
order to grow revenues, we must introduce new products and expand our market share.
Objective Attributes
Longer statement than goal statement More specific than goal statement
Relationship to mission
Covers shorter time period than goal (such as 6 months or 1 year) Example:
Strategic Themes
o Based on strategic goals, three to five strategic
4 Perspectives of BSC
Financial: Top layer in the map, represents financial outcomes
enable processes.
Strategic Mapping
Strategic Maps are the foundation of the Balanced
Scorecard.
You will need one strategic map for each strategic theme. Maps are constructed over four perspectives. Strategic objectives are mapped over the four
Start at the top with outcomes and work our way down,
Approval of Maps
After strategic maps are done, get approval from
executive management. Ask questions likes.Does this map accurately tell the story of our strategy?
If management disagrees with the map, go back and
Measurements
For each strategic objective, you need one measurement.
strategic objective.
Measurement Criteria
Measurements should drive change, providing teeth to our
strategy.
Measurements define objectives in specific terms. A good
Targets Setting
Once measurements are established, you need to set a
performance.
Targets put focus on the strategy, expressing the specifics
of the strategy.
When an organization hits its targets, then it has
Examples of Targets
Total Time to Recruit New Employees: Less than x
days by 2005
Utilization of rental facilities: Increase to 90% during
Initiatives Takers
should be able to meet your strategic objectives. This closes the loopholes and everything is linked.
Initiative Attributes
Sponsored by Top Management Designated project(s) owners Includes deliverables or milestones Has some deadlines
Templates
Throughout this process, use templates to capture, analyze and document data. Templates are used for strategic mapping, defining measurements, etc.
Strategic Map for Strategic Theme #1:
Learning
Internal
Customer
Financial
(upper level management), Core Team (middle level management) and Measurement Team (lower level functional personnel).
Scorecards are built around frequent group meetings: Kick
Off Meeting followed by one meeting for each of the three teams.
Implementation
The minimum time for developing a balanced scorecard is
3 months.
Full deployment of scorecards throughout the entire
components of the value chain are in place: Customer, Innovation, Production, Delivery, Services, etc.
Summary
Balanced Scorecards are the best way of putting
whereby you test your strategies, refine, and make changes as you get feedback and learn what works.
THANK YOU