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Introduced By

‡ Robert S. Kaplan and David P. Norton
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Why Balanced Scorecard?

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‡ Basic Concepts ‡ Why do Strategic Plans fail ?

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‡ Only 5% of the workforce understands their company strategy. ‡ Only 25% of managers have incentives linked to strategy. ‡ 60% of organizations don¶t link budgets to strategy. ‡ 86% of executive teams spend less than one hour per month discussing strategy.
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What is Balance Score Card
BSC is a measurement tool

BSC is a communication tool

BSC is a strategic management tool

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BSC Perspective

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Financial Perspective
‡ What are the financial targets? ‡ What drives these targets? ‡ What kind of profit and revenue to achieve? ‡ In a non-profit organization, what budget guides you?

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Customer perspective
‡ Who are the customers? ‡ How do you delight them? ‡ What segments do you wish to address? ‡ What goals do you wish to achieve with partners? ‡ What are your goals for the distribution channel?

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Internal perspective
In which processes must we be the best to win customers? What internal activities do we need to sustain competencies?

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Learning and growth perspective
‡ What must we be great in performing, and how do we train our people to get up to that level? ‡ What climate and culture nurtures growth? ‡ What do we have to do in developing and training our people to achieve the other objectives?
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Stages of Implementation
‡ ‡ ‡ ‡ Trigger phase Education phase Pilot phase Enterprise phase

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Benefits of BSC
Drive strategy execution Clarify strategy and make strategy operational Identify and align strategic initiatives Link budget with strategy Align the organization with strategy Conduct periodic strategic performance reviews to learn about and improve strategy
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Efforts By: Vimal S Solanki

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