SBA Strategic Business Analysis

Topic

Team
BALANCED

BALANCED
SCORECARD

History &
Evolution

Components

SC RECARD
Purposes

Advantages

Disadvantages

Implementation

...
 SBA Strategic Business Analysis

Topic

Team
BALANCED
SCORECARD
GROUP 1
History &
Evolution

Components

Purposes

Advantages Agascon Ferrer Piano

Group Leader Reporter Reporter

Disadvantages

Capule Magpantay Villafuerte

Reporter Reporter Reporter
Implementation

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 SBA Strategic Business Analysis

Topic

Team

BALANCED SCORECARD
BALANCED
SCORECARD

History &
Evolution

Components

Balanced scorecard or BSC

Purposes
is a strategic management
Advantages tool that measures the
Disadvantages
organization's performance.
Implementation

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 SBA Strategic Business Analysis

Topic

Team HISTORY AND EVOLUTION

BALANCED
SCORECARD

History & The Balance Scorecard -

Evolution
Measures that Drive Performance
Arthur M. Schneiderman
by Robert Kaplan and
Components Analog Devices- First generation
Balance Scorecard Design David Norton

Purposes 1987 1992

Advantages
1990 1996
First documented study of the The Balance Scorecard -
Disadvantages Balanced Scorecard Translating Strategy in
Action - First Book
Implementation

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 SBA Strategic Business Analysis

Topic

Team COMPONENTS
BALANCED
SCORECARD

History & FINANCIAL CUSTOMER

Evolution PERSPECTIVE PERSPECTIVE
To succeed financially, To achieve our vision, how
how should we appear should we appear to our
Components to our shareholders? customers?
Objectives Measures Targets Initiatives Objectives Measures Targets Initiatives

Purposes

INTERNAL LEARNING &

Advantages PROCESSES GROWTH
PERSPECTIVE PERSPECTIVE
To satisfy our shareholders To achieve our vision,
Disadvantages and customers, what how will we sustain our
business processes must we ability to change and
excel at? improve?
Objectives Measures Targets Initiatives
Implementation Objectives Measures Targets Initiatives

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 SBA Strategic Business Analysis

Topic
The Four Perspectives Apply to Mission Driven As Well As
Team Profit Driven Organizations
BALANCED
SCORECARD

Mission Driven
History &
Evolution Profit Driven
FINANCIAL
Components What must we do to satisfy our PERSPECTIVE What must we do to satisfy our financial
shareholders? contributors?
What are our fiscal obligations?
Purposes CUSTOMER
What do our customers expect PERSPECTIVE Who is our customer?
from us? What do our customers expect from us?
Advantages
What internal processes must we INTERNAL What internal processes must we excel at to
excel at to satisfy our shareholder
PROCESSES
Disadvantages

PERSPECTIVE satisfy our fiscal obligations, our customers

and customer?
and the requirements of our mission?

How must our people learn and How must our people learn and develop skills
LEARNING &
Implementation develop skills to respond to these GROWTH to respond to these and future challenges?
and future challenges?

PERSPECTIVE
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 SBA Strategic Business Analysis

Topic

Team PURPOSES
BALANCED
SCORECARD

History &
Leads ethical
Evolution decision-making

Components

To evaluate To identify and

Purposes
employees and align strategic
managers initiatives
Advantages

Disadvantages
To focus on the drivers
key to future
Implementation performance

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 SBA Strategic Business Analysis

Topic

Team ADVANTAGES
BALANCED
SCORECARD

History & Brings structure to business

Evolution
strategy
Components

Purposes
Makes communication easier

Advantages

Disadvantages Connects the individual worker to

organizational goals
Implementation

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 SBA Strategic Business Analysis

Topic

Team DISADVANTAGES
BALANCED
SCORECARD

History &
Evolution
It must be tailored to the
organization
Components

Purposes
It needs buy-in from leadership to
be successful
Advantages

Disadvantages
It requires a lot of data
Implementation

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 SBA Strategic Business Analysis

Topic

Team IMPLEMENTATION
BALANCED
SCORECARD

History & Steps to build a Balanced Scorecard:

Evolution

1
Components
Clarify the mission or strategic vision.
Purposes

Advantages
2 Specify objectives in the four perspective areas.

Disadvantages
3 Define performance measurement to measure the
objectives or goals.

Implementation
4 Decides specific targets and initiatives.

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 SBA Strategic Business Analysis

Topic

Team IMPLEMENTATION
BALANCED
SCORECARD

History &
Financial perspective
Evolution
measures are usually
traditional measures,
Components
based on financial
statement information
Purposes such as EPS or ROI.

Customer perspective
Advantages measures are those
that evaluate how the
customer perceives the
Disadvantages
business and how the
business interacts with
Implementation customers.

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 SBA Strategic Business Analysis

Topic

Team IMPLEMENTATION
BALANCED
SCORECARD
Internal business
History &
Evolution perspective measures
are those that evaluate
management’s
Components
operational goals, such
as quality control or on-
Purposes time production.

Learning and growth

Advantages perspective measures
are those that evaluate
how effectively the
Disadvantages
company is growing by
innovating and creating
Implementation value.

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 SBA Strategic Business Analysis

Topic

Team IMPLEMENTATION
BALANCED
SCORECARD

History &
Evolution
Key Takeaway:
Components

The Balanced Scorecard reflects the balance

Purposes
between: short term and long-term objectives
Advantages financial and non-financial measures
external and internal performance perspectives
Disadvantages

Implementation

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 SBA Strategic Business Analysis

Topic

Team
BALANCED
SCORECARD

History &
Evolution

Thank You!
Components

Purposes

Advantages

Disadvantages

Implementation

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