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P. GURU PRASAD FACULTY INC GUNTUR
THE BALANCE SCORECARD • In the rapidly changing world of business. . considering only the financial measures of performance gives an incomplete picture of the overall organizational performance. It has become increasingly necessary for organizations to simultaneously look at non financial measures for this purpose.
THE BALANCE SCORECARD • Concepts like JIT. One concept which has received universal acclaim is the “Balance Scorecard” (BSC). • A combination of financial and non financial measures gives a better picture of organizational performance. TQM. and SIX SIGMA have brought out the growing importance of non financial measures for evaluating the organizations overall performance. . proposed by Robert Kaplan and David Norton in 1992.
performance and service. • The customer’s perception of the value delivered by an organization’s product or service is primarily influenced by four factors – quality. and the innovation/learning and growth perspective. time. in addition to the financial perspective. internal business perspective.THE BALANCE SCORECARD • The BSC framework considers the customer perspective. and cost .
how should we appear to our shareholders To satisfy our customer and shareholders. how will we sustain our ability to change and improve? .THE BALANCE SCORECARD perspective Customer perspective Financial perspective Internal business perspective Innovation/learning growth perspective Underlying question To achieve our vision. how should we appear to our customer To succeed financially. at what business processes must we excel? To achieve our vision.
quality. This helped achieve the financial objective . was included in the Balance scorecard hall of fame for successful implementation of the Balance scorecard for enhanced customer satisfaction.Trent and the BSC • In 2005. New products were launched after studying the market for recent trends. This gave an overall view of the other objectives of the organization. Trent. • Apart from this. the store layout and display were changed to reflect the customer’s choice. • Under the customer perspective. and a great shopping experience for the entire family”. the parent company of Westside retail store chain. the strategy devised was “surprisingly affordable style.
Implementing the BSC • If an organization emphasizes only shortterm or financial goals. The balance scorecard serves as a tool for strategic performance control by clarifying the vision and strategy of the organization and articulating the top management's expectations . it will not be able to successfully execute its strategies and excel in the business.
and Align strategic initiatives Measure / monitor / report .Implementing BSC for strategic Performance Control and Strategic Learning Vision and Mission Strategy formulation strategy Clarity in vision translate into strategy Communicate and link strategic objectives and measures Strategic Feedback And learning Corrective actions For strategic Performance control Plan. set targets.
it's plagiarism. • "The desire of appearing clever often prevents our becoming so." • "Copy from one.Thank you • The only time success comes before work is in the dictionary. it's research. copy from many." • -Wilson Mizner (1876-1933) .