PRESENTATION

ON
BALANCED SCORECARD

PRESENTED BY BIMPLE SANDHU

R.NO 17071208
IN 1992, DR.ROBART S.KAPLAN AND DAVID
P.NORTON introduce the balanced scorecard
methodology.

The balanced scorecard is one such strategic

planning and management tool used by
organizations to align their business activities
with their organizations vision and strategies.
THERE IS ALWAYS A NEED FOR A STRATEGIC PLANNING AND
MANAGEMENT SYSTEM WHICH COULD

1.Align
3.Monitor the
business 2.Improve
organization’s
activities to the internal and
performance
organization's external
against its
vision and communication
strategic goals
strategies
 Internal Learning
Financial Customer business and
processes growth
 It
looks top level financial objectives and
measures.

 The financial perspective address the

question of how shareholders view the firm
and which financial goals are desired from
the shareholder’s perspective.
 Market share

 Revenue growth

 Return on investment

 Financial productivity
 It focuses on customers satisfaction.

 The customer perspective address the

question of how the firm is viewed by its
customers and whether the firm will be able
to fulfill customers expectations.
 Customer services

 New products

 New markets

 Customer satisfaction and loyalty

 It concerned with accessing process quality,
process cycle time to identify how well the
business is running
 OM is the administration of business
practices to create the highest level
of efficiency possible within an
organization.

 Operations management processes

 Customers services processes

 Regulatory and social processes

 It determines
the necessary skills and
training module required for the successful
implementation of company processes.
 People.

 Training.
 Itis the extension of Balanced Scorecard.
 The strategy map places the four balanced
scorecard perspectives into a causal
hierarchy.
 The causal hierarchy shows that the
objective support each other and delivering
the right performance in the lower
perspectives will help achieve the objectives
in the upper perspectives.
 Objectives : What is it that you wish to achieve?

 Measurement : how do you know if you have been

able to achieve the stated objectives?

 Target : what is the level of performance expected or

the level of improvement expected?

 Initiative : what is it that you would do to achieve

your targets and thereby your objectives?
 Culture,leade
Skill,knwldge Netwrk,DB,sy
rship,devlop
,attitude stem
The measurement system
interconnects , the objectives
and the measures in the
various perspectives so that
they can be validated and
managed.
How will the airlines company retain its
customers and increase its revenue ? WHICH WISHES TO
REDUCE ITS OPERATING
COSTS

DECIDED TO REDUCE
AIRPLANES THE NUMBER OF PLANES

INCREASE THE
FREQUENCY OF THE
FLIGHTS AMONG
DIFFERENT CITIES TO
INCREASE ITS REVENUE
 Thebalanced scorecard translates an
organization’s mission and strategies into
tangible objectives and measures.

 The following four steps for designing the

balanced scorecard :
1.Clarify and translate vision and strategy
2.Communication & link strategic objectives and
measures
 3. Plan, set targets, and align strategic
initiatives.
4. Enhance strategic feedback and learning.
 Better Strategic planning.
 Improved strategy Communication and
execution.
 Better management information.
 Improved performance reporting.
 Better organizational alignment.
 Better process alignment.
 Fundamentals of Business Analytics , R.N.
Prasad and Seema Acharya.
 http://www.businessdictionary.com/
 https://hbr.org/2007/07/using-the-
balanced-scorecard-as-a-strategic-
management-system
 https://www.balancedscorecard.org/
 https://www.youtube.com/
THANK YOU