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Balanced Scorecard

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April, 2010

Basics & Best Practices


Terminologies

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In addition, Strategic & Business Planning relies on


well-defined, best practice terminology
Strategic & Business Planning Process Key Terminology

Units
Key
Performanc
e Indicators
(KPI)

Goal
Objective

Any Business or Functional Unit. According to the new organization structure, GACA has five
Business Units (KKIA, KAIA, KFIA, Domestic Airports and ANS) and five Functional Units
(Corporate Core, IT, Finance, Human Resources, Internal Audit) and a Safety and Economic
Regulation function1
A measure used to monitor how well a business is achieving its quantifiable objectives. KPIs are
found at both the strategic (assets turnover, customer satisfaction index) or operational levels
(e.g. traffic volume)

Long-term target value (a number) of KPI; set to be attained after five years

Short-term target value (a number) of KPI; set to be attained in one year

Strategy

A means or action that will lead to the achievement of a goal (five years ahead)

Initiative

A means or action that will lead to the achievement of the objective (one years ahead). A set of
initiatives form a strategy

Booz & Company


28 March 2009

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Contents

BSC general work flow


Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
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BSC general work flow


Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
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1. Internal Scanning
2. External Scanning
3. SWOT Analysis
4. Strategy Mapping
5. KPIs Setting
6. Targets Setting

One Of The Best


Practices For BSC Work
Flow

7. Initiatives Setting
8. BSC Dashboard
9. Performance
Monitoring
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BSC general work flow


Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
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Internal Scanning Summary


Introduction

Purpose

Suitable
Techniques
Expected
Outcomes

Internal scanning is a strategic planning technique


that helps in determining the firms strengths and
weaknesses and any related issues inside the firm
Knowing firms strengths and weaknesses
Getting exposed to the firms processes and chain of
commands
The following techniques are suitable to serve the internal
scanning purpose:
Value Chain Analysis
Capability Assessment
Once the internal scanning is done, it is expected to have:
Firms strengths
Firms weaknesses
Firms processes and value transferred from each process to another
potentials for improvements

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BSC general work flow
Internal Scanning Summary
Related Templates

External Analysis Summary


SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
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Value Chain Analysis

Activity A

Activity B

Activity C

Key
Key
Key
Responsibilities
Responsibilities Responsibiliti
Value
Value
es
Value
transferred
transferred
transferred

m
e
T

Activity D
Key
Responsibilitie
sValue
transferred

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Capability Assessment

Organizat
People
Process
System
ion
Readiness Readiness Readiness
Readiness
(%)
(%)
(%)
(%)

Evidence and
Comments

Activity A

Activity B

Activity C

Activity D

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BSC general work flow


Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
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External Scanning Summary


Introduction

Purpose

Suitable
Techniques
Expected
Outcomes

External scanning is a strategic planning technique


that helps in determining the firms opportunities
and threats and any related issues outside the firm
Knowing firms opportunities and threats
Getting exposed to the firms competitors and market
changes
The following techniques are suitable to serve the external
scanning purpose:
Industry Trends
Porter 5 Forces Model
Once the external scanning is done, it is expected to have:
Firms opportunities
Firms threats
New trends and demands
potentials for investments and competitive advantages

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BSC general work flow
Internal Scanning Summary
External Analysis Summary
Related Templates

SWOT Analysis Summary


Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
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Other TechnologyRegulatory Market Competitive


Trends
Trends
Trends
Trends
Trends

Corporate Industry Trends

Trend
Description

Supporting
Evidence

Implications

Trend A
Trend B
Trend A
Trend B
Trend A
Trend B
Trend A
Trend B
Trend A
Trend B

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General External Environment


Technological
Change

Specific
International
Events

Demographic
Trends

Entry

Complementors

Rivalry
Focal
Firm

Buyers
Legal/Political
Conditions

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Industry
Suppliers

Substitutes
Cultural
Trends

Economic
Climate
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BSC general work flow


Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
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SWOT Summary
Introduction

Purpose

SWOT is a strategic planning technique that helps


in determining the firms strategic directions and
priories
Knowing what strategies will sustain the growth of the
firm and what will be done in order to extract advantaged
over the competitors

Suitable
Techniques

The following techniques are suitable to serve the


SWOT purpose:
SWOT Matching

Expected
Outcomes

Once the SWOT is done, it is expected to have:


Firms strategic directions and priorities

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BSC general work flow


Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Related Templates

Strategy Mapping Summary


KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
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SWOT Summary

Internal Factors
External Factors
Threats
Opportuniti
es

Strengths
1.Internal Strengths Matched
with External
Opportunities




3.Internal Strengths Matched
with External Threats



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Weaknesses
2. Internal Weaknesses Relative to
External Opportunities




4.Internal Weaknesses Relative to
External Threats



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SWOT Analysis

SO1

SO

ST

WO

WT

Leverage the planned expansion for Jeddah airport to attract


the growing charter market in the region

WT2

WO4

WO5

SO1

Strategic
Explore Priorities
New
1 Market
Segments to
Expand
Revenue
Base
2

WO1
WO2

SO2
WO3

WO6

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BSC general work flow


Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
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Strategy Mapping Summary


Introduction

Purpose

Strategy mapping is a strategic planning technique


that helps in representing the firms strategies in
such a way that shows the cause and effect of
each strategy
To ensure that each strategy does really serve a specific
other strategy, and the overall strategies serve and feed
the firm's vision

Suitable
Techniques

The following techniques are suitable to serve the


strategy mapping purpose:
Strategy Map

Expected
Outcomes

Once the strategy mapping is done, it is expected


to have:
Firms strategy map

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BSC general work flow


Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
Related Templates

KPIs Setting Summary


Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
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VISION

FINANCIAL
PERSPECTIVE

CUSTOMER
PERSPECTIVE

INTERNAL
PERSPECTIVE

EARNING AND GROWTH


PERSPECTIVE

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BSC general work flow


Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
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KPIs Setting Summary


Introduction

Purpose

Suitable
Techniques

Expected
Outcomes

KPIs (Key Performance Indicators) are measures


that indicate how is the progress of strategic
objectives and targets achievements
To indicate and alarm the management for strategy and
targets achievements or deviations

KPIs Profile
Benchmarking
KPIs Libraries
Once the KPIs setting is done, it is expected to have:
Firms KPIs
KPIs definitions & frequency of review
KPIs formulas
Strategic objectives that are measures by specific KPIs
KPIs owners

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BSC general work flow


Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Related Templates

Targets Setting Summary


Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
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KPI Definition

KPI Formula

Frequency

Owner

Definition

X+Y = Z

W/M/Q/S/A

Name / Dept.

Definition

X+Y = Z

W/M/Q/S/A

Name / Dept.

Definition

X+Y = Z

W/M/Q/S/A

Name / Dept.

Definition

X+Y = Z

W/M/Q/S/A

Name / Dept.

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BSC general work flow


Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
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Targets Setting Summary


Introduction

Purpose

Targets are those values (determined in each KPI)


that the management wants to achieve within a
certain time
To make the KPIs and the measurement more quantifiable
and measureable

Suitable
Techniques

Expected
Outcomes

Once the targets setting is done, it is expected to


have:
KPIs targets
Targets values & units

Benchmarking
Forecasting
Feasibility studies
Market Research

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BSC general work flow


Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
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Initiatives Setting Summary


Introduction

Purpose

Suitable
Techniques
Expected
Outcomes

Are those actions that are predesigned and


dedicated to achieve the determined targets and
to activate specific KPIs
To help the firm achieving strategic objectives

Benchmarking
Feasibility studies
Market Research
R&D

Once the initiatives setting is done, it is expected


to have:
Strategic plan initiatives
Owners

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BSC general work flow


Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
Related Templates

BSC Dashboard Summary


Performance Assessment Summary
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Strategic Priority

Strategic Priority A

Strategic Priority B

Strategic Priority C

Strategic Priority D

KPI
1.
2.
3.

KPI1
KPI2
KPI3

1.
2.
3.

KPI1
KPI2
KPI3

1.
2.
3.

KPI1
KPI2
KPI3

1.
2.
3.

KPI1
KPI2
KPI3

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Target

Initiative

VALUE (unit)

1.
2.
3.

Action A
Action B
Action C

VALUE (unit)

1.
2.
3.

Action A
Action B
Action C

VALUE (unit)

1.
2.
3.

Action A
Action B
Action C

VALUE (unit)

1.
2.
3.

Action A
Action B
Action C

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BSC general work flow


Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
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BSC Dashboard Summary


Introduction

Purpose

It is a simple visualization of the firms


performance
To help the management taking decisions and being up to
date with the firms overall performance

Suitable
Techniques

MS Power Point Presentation


MS Excel
other software

Expected
Outcomes

Once the BSC dashboard is done, it is expected to


have:
Projected BSC perspectives and firm's strategic
priorities with notifying designs

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Now

BSC general work flow


Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Related Templates

Performance Assessment Summary


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Financial
Financial Dimension
Dimension
Indicators
Indicators

%
%
(Actual
(Actual //
Target)
Target)

%
%
Internal
Internal Processes
Processes Dimension
Dimension
(Actual
//
(Actual
Indicators
Indicators
Target)
Target)

%
%
Internal
Internal Processes
Processes Dimension
Dimension
(Actual
//
(Actual
Indicators
Indicators
Target)
Target)

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%
%
Learning
Learning &
& Growth
Growth Dimension
Dimension
(Actual
//
(Actual
Indicators
Indicators
Target)
Target)

Actual < 90% of


Target
90% of Target < Actual < 100% of
Target
Actual >= 100% of
Target
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BSC general work flow


Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
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Performance Assessment
Summary
Introduction

Purpose

Suitable
Techniques
Expected
Outcomes

It is a systematic examination of the whole


strategic plan and its achievements and
implications
Contiguous learning and improvement

Cause& Effect
systematic inspections and assessment
Corrective planning
Preventive planning
Lessons Learned

Once the performance assessment is done, it is expected


to have:
Performance assessment reports

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BSC general work flow


Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
Related Templates
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External
External Factors
Factors

Description
Description

A
A
X
X

Internal
Internal Factors
Factors
1
1

Operational
Operational
Lever
Lever

Root
Root Cause
Cause

Corrective
Corrective Action
Action Plan
Plan

%
% Plan
Plan Completed
Completed
09/0
8

2
2

11/0
8

X
X

dd/y
y

04/0
9
30
%

01/0
9

33
%

80
% dd/y
y
w
%

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Comments
Comments

KPI(Target
KPI(Target Unit)
Unit)

Summary
Summary of
of drivers
drivers for
for
performance
performance

Summary
Summary of
of actions
actions taken
taken to
to
rectify
rectify any
any variance
variance

Overall
Overall Status
Status
Based
Based on
on both
both current
current performance
performance and
and on
on cumulative-to-date
cumulative-to-date performance
performance

Gap =< -10% of Target

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-10% of Target < Gap < 0% of Target

Gap >= 0% of Target

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