Balanced Scorecard

Presented by PRISM Group 4

Objective
What is Balanced Scorecard? Why Balanced Scorecard? How to prepare Balanced Scorecard? The Four Perspectives? Linkages of Balanced Scorecard?

Performance Management

What is Balanced Scorecard?

Balanced Scorecard is a management tool that provides stakeholders with a comprehensive measure of how the organization is progressing towards the achievement of its strategic goals

Developed in 1992 by Harvard Business School professor Robert S. Kaplan and management consultant David P. Norton

Why Balance Scorecard?

Balances financial and non-financial measures Balances short and long-term measures Balances performance drivers (leading indicators) with outcome measures (lagging indicators) Leads to strategic focus and organizational alignment.

The four perspectives

The four perspectives

Financial Perspective

The Strategy

If we succeed, how will we look to our shareholders? Customer Perspective To achieve our vision, how must we look to our customers? Internal Perspective To satisfy our customers, which processes must we excel at?

Learning & Growth Perspective To achieve our vision, how must our organization learn and improve?

Financial Perspective
In the financial perspective, the strategic goal is the longlongterm shareholder value This goal is driven by two factors, value. namely : revenue growth and cost efficiency The financial perspective examines if the companys implementation and execution of its strategy are contributing to the bottom-line improvement of the company

Financial Perspective

Customer Perspective
The customer perspective defines the value proposition that the organization will apply in order to satisfy customers and thus generate more sales to the most customer groups It measure both the value that is delivered to the customer and the outcomes that come as a result of this value proposition

Customer Perspective

Internal process perspective

The internal process perspective is concerned with the processes that create and deliver the customer value proposition. It focuses on all the activities and key processes required in order for the company to excel at providing the value expected by the customers both productively and efficiently.

Internal process perspective

Learning and growth perspective

The learning and growth perspective is the foundation of any strategy and focuses on the intangible assets of an organization, mainly on the internal skills and capabilities that are required to support the valuecreating internal processes.

Learning and growth perspective

Linkage

Linkage

Growth perspective enables the organization to improve its Internal Process perspective Objectives, which in turn enables the organization to create desirable results in the Customer and Financial perspectives

Linkage
Long-term Shareholder Value Cost Efficiency Revenue Growth

Financial

Price

Quality

Service

Availability

Brand

Customer

Operations Management Processes

Customer Management Processes

Innovation Processes

Regulatory and Social Processes

Internal Process Learning & Growth

Human Capital Organization Capital Information Capital

Conclusion
BSC Perspective Shareholders Perspective Customer Perspective Internal process Perspective Learning-(Employee) Perspective Strategic Goals Wealth Creation World class service and goods Lowest cost producer Knowledge based & learning organization

Thank You