balanced score card

Balanced Scorecard : 

Balanced Scorecard

Balanced scorecard : 

Kaplan and Norton introduced the balanced scorecard performance management concept in a paper, “The Balanced Scorecard: Measures that Drive Performance" in the January 1992 edition of Harvard Business Review. It is a strategic performance management tool. Balanced scorecard

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It’s focus is to provide organizations with a "balanced" range of metrics against which to measure their performance. "Balance" implied that organizations can gain a broader view of leading indicators of performance by including non-financial metrics (e.g. learning and growth of employees, efficiency of internal business processes, and customer satisfaction).

Characteristics of Balanced Scorecard : 

Core Characteristic and it’s derivatives is the presentation of the mixture of financial and non-financial measures, each compared to a 'target' value within a single concise report. Non-Financial measures indicates: “Customer”, “Internal Business processes” and “Learning and Growth” Characteristics of Balanced Scorecard

What exactly is a balanced scorecard ? : 

'A strategic planning and management system used to align business activities to the vision statement of an organization'. A semi-standard structured report supported by proven design methods and automation tools that can be used by managers to keep track of the execution of activities by staff within their control and monitor the consequences arising from these actions. What exactly is a balanced scorecard ?

Balanced Scorecard methodology : 

It is an analysis technique designed to translate an organization's mission statement and overall business strategy into specific, quantifiable goals and to monitor the organization's performance in terms of achieving these goals. Balanced Scorecard methodology

How it was evolved from a Performance management tool to a comprehensive strategic management tool? : 

How it was evolved from a Performance management tool to a comprehensive strategic management tool?

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It is by the following principle – “you cannot measure what you cannot describe” This Shows that Companies Cannot evaluate their Business performance without rethinking their business priorities and describing their strategies.

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DESIGN OF BALANCED SCORECARD

What to do at First? : 

To embark on the Balanced Scorecard path an organization first must know (and understand) the following: The company's mission statement The company's strategic plan/vision The financial status of the organization How the organization is currently structured and operating ? The level of expertise of their employees Customer satisfaction level What to do at First?

Design : 

Identification of a small number of financial and non-financial measures and attaching targets to them. To determine whether current performance 'meets expectations'. Alerting managers to areas where performance deviates from expectations, they can be encouraged to focus their attention on those areas. Design

Four steps required to design a Balanced Scorecard : 

Translating the vision into operational goals; Communicating the vision and link it to individual performance; Business planning; index setting Feedback and learning, and adjusting the strategy accordingly. Four steps required to design a Balanced Scorecard

Original design method : 

A Balanced Scorecard approach generally has four perspectives: Original design method 1.Financial 2.Customer 3.Internal Business Processes 4.Learning & Growth (human focus, or learning and development)

Heart of balanced scorecard : 

Heart of balanced scorecard

Balanced Scorecard Factors - Examples : 

Balanced Scorecard Factors - Examples

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Companies are ready to utilize the Balanced Scorecard approach to improve the areas where they are deficient. The Set up Performance Metrics must be SMART(Specific, Measurable, Achievable, Realistic and Timely) Organization cannot improve the Performance metrics on what it cannot measure! Metrics must also be aligned with the company's strategic plan. Continues..

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Strategy map : 

A strategy map is a visual representation of the strategy of an organization. It is an element of balanced scorecard concept. It illustrates how the organization plans to achieve its mission and vision by means of a linked chain of continuous improvements. Strategy map

Creation of the Strategy Map - Hierarchical Relationships of the Four Perspectives : 

It is the key first step in the balanced scorecard methodology. Strategy maps are communication tools used to tell a story of how value is created for the organization.  They show a logical, step-by-step connection between strategic objectives (shown as ovals on the map) in the form of a cause-and-effect chain. Creation of the Strategy Map - Hierarchical Relationships of the Four Perspectives

Balanced Scorecard Software : 

Performance management software can be used to get the right performance information to the right people at the right time. Automation adds structure and discipline to implementing the Balanced Scorecard system. Helps transform disparate corporate data into information and knowledge, and helps communicate performance information. QuickScore Performance Information System developed by Spider Strategies and co-marketed by the balanced scorecard Institute. Balanced Scorecard Software

Balanced Scorecard Implementation : 

Implementing the Balanced Scorecard system company-wide, should be the key to the successful realization of the strategic plan/vision. A Balanced Scorecard should result in: Balanced Scorecard Implementation Improved processes Motivated/educated employees Enhanced information systems Monitored progress Greater customer satisfaction Increased financial usage

Popularity : 

Balanced Scorecards have been implemented by government agencies, military units, business units and corporations as a whole, non-profit organisations, and schools. Popularity

Related Work: : 

The Balanced Scorecard is just one of many scorecards now used in business circles. Some of the others are: Consultant Scorecard HR Scorecard Total Performance Scorecard The Performance Prism Related Work: