balanced scorecard individual scorecard - .balanced scorecard and individual scorecard...

Balanced Scorecard and Individual Scorecard

Chanchai Dee-Uam

T-SIS Co.,Ltd.

SECTION 1 : Introduction

Why do we have strategy ? :

What is strategy ? : ? B.B. Liddell Hart George Steiner Henry Mintzberg Kenneth Andrews Michael Porter Kepner-Tregoe Michel Robert Treacy and Wiersema

Means/Policies () Pattern () Position () Perspective ()

Perspective ()

Perspective ()

Position ()

Means/Policies()

Pattern ( )

What is strategy ? :

: How to communication ?

( KPI / Measure )

(Target Setting )

... Where do we want to go ? How to get there ? ...

...

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What is Balanced Scorecard ? : Balanced Scorecard ?

(Balanced) (Communication) (Alignment) (Synergy) (Intangible Asset)

Balanced Scorecard 1990

Robert Kaplan David Norton

1. (Financial)

2. (Customer)

3. (Internal Process)

4. (Learning and Growth)

Balanced Scorecard

/

The Balanced Scorecard and The Big Picture

Activity Based Costing Economic Value Added Forecasting Benchmarking Market Research Best Practices Six Sigma Statistical Process Control Reengineering ISO 9000 Total Quality Management Empowerment Learning Organization Self-Directed Work Teams Change Management Project Management Risk Management

Vision Strategic ManagementBalancedScorecard

3

4

2

5

6

1

7 BSC andIndividual Scorecard

Balanced Scorecard Individual Scorecard

(Monitor &Evaluation)

(Strategic Execution)

(Balanced Scorecard)

(Strategy Communication & Deployment)

(Motivation &

Leadership Creation)

(Strategy Formulation)

(Feedback Analysis)

PA

DC

(Strategy Formulation)

(Planning) (Corporate Strategy)

Corporate Strategy + Scorecard

Business Strategy + Scorecard

Business Strategy + Scorecard

Business Strategy + Scorecard

Business Strategy + Scorecard

Individual Strategy + Scorecard

(Strategy Translation)

Organization Target :

SWOT / Analytical Stakeholder & Customer Business/ Industry Policy

Vision :

Initiative (Project/ Activity/ Event)

(Strategy Translation)

Vision :

(Position)

Where do we want to go ?

SWOT

Outcome

/ (Strategy Formulation)

Vision

Strategic Issue

Goal

KPI/ Target / /

Strategy

Initiative

Balanced Scorecard Mission and Vision Statements

Microsofts Annual Report

VisionA computer on every desk and in every home.

MissionIn our pursuit of that vision, we have grown, changed, adapted, and reinvented ourselves--to meet the challenges of our competition, to take advantage of innovation, and to deliver on the dreams and demands of our customers. We continue to be committed to outstanding products, solid operations, and long-term shareholder value.

Balanced Scorecard Mission and Vision Statements

AT&Ts Annual Report

VisionWe are dedicated to being the world's best at bringing people together --giving them easy access to each other and to the information and services they want and need -- anytime, anywhere.

MissionWe believe in respect for individuals, dedication to helping customers, highest standards of integrity, innovation, and teamwork. By living these values, AT&T aspires to set a standard of excellence worldwide that will reward our shareowners, our customers, and all AT&T people.

A Balanced Scorecard Illustration

Customer Perspective Pricing Index Tier II Customers Customer Ranking Survey Customer Satisfaction Index Market Share (Tier I, Key accounts)

Internal Business Perspective Hours with Customers on New Work Rework Safety Incidence Index Warranty Cost Reduction

Innovation and Learning Perspective % Revenue from New Services Staff Attitude Survey # of Employee Suggestions Revenue per employee

Financial Perspective Return-on-Capital Economic Value Added Profit Forecast Reliability Sales Backlog

Source:Kaplan and Norton

(Strategy Formulation)

Vision Strategic Issue Goal KPI/ Target Strategy Initiative

Goal

(Tool of Strategy Formulation)

Vision CSFCSF Critical Success Factor

/ (Strategy Formulation)

Vision : Project

Strategy

KPI

Goal

Strategic Issue

SMS

Strategy -

Vision Strategic Issue

Goal

KPI

(Strategy Formulation)

Owner -

Supporter -

2. (Balanced Scorecard)

Balanced Scorecard

4 Balanced Scorecard

Finance Perspective Customer Perspective Internal Process Perspective Learning and Growth Perspective

Balanced Scorecard

Objective Measures Target Initiatives Objective Measures Target Initiatives

Objective Measures Target Initiatives

Objective Measures Target Initiatives

CustomerPerspective

InternalProcess

Perspective

FinancialPerspective

LearningandGrowthPerspective

Vision andStrategy

FCIL

VISION

Public SectorBusiness Sector

()

CFIL

VISION

Non-Profit Organization

CIL

VISION

CILF

VISION

LFCI

VISION

Balanced Scorecard Table

Strategic Initiatives

TargetMeasuresObjectives

VISION :

VISION :

100%

10 %

Initiative TargetMeasure Objective

Finance

VISION :

90%

30 %

Initiative TargetMeasure Objective

Customer

VISION :

50 %

80%

Initiative TargetMeasure Objective

Internal Process

VISION :

Initiative TargetMeasure Objective

Learning and Growth

SMS

Scorecard

Objective - Measure -

Target -

Initiative

Budget -

Tactic -

Project Management -

Strategy -

Vision Strategic Issue

Goal

KPI Finance -

Internal Process -

Customer -

Learning & Growth -

Full Balanced Scorecard

3. (Strategy Communication

& Deployment)

SMS

Scorecard

Objective - Measure -

Target -

Initiative

Budget -

Tactic -

Project Management -

Strategy -

Vision Strategic Issue

Goal

KPI Communication :

Deployment :

Organization Scorecard

Business Scorecard

Individual Scorecard

Strategy Map

SMS

Scorecard

Objective - Measure -

Target -

Initiative

Budget -

Tactic -

Project Management -

Strategy -

Vision Strategic Issue

Goal

KPI

Strategy Map

Strategy Map

Financial

Customer

Internal Process

Learning & growth

Strategy MapStrategy Map

Wendys Alternative to the Strategy Map

MISSIONTo deliver superior quality

products and services for ourcustomers and communities

through leadership,innovation, and

partnerships

CORE VALUES

VISION

THEMES

Maximize

Community

Leadership

Integrity

involvement

Continuousimprovement

Commitmentto shareholders

Quality

Customersatisfaction

Peoplefocus

Operationalexcellence

Technology

CorporateprocessChange

Evolvingbusinesses

Understandingthe consumer

Supply chainmanagement

People

Financialplanning

andreporting

Innovationof corebusiness

Mergersand

acquisitions

Shareholder valueTo

bethe

qualityleader in every

thingwe

do

Finance:

Customer:

Internal Process:

/

Learning & Growth:

PMQA & BSC

Deployment Strategy

Organization Strategy

Business Strategy

Individual/ Personal Strategy

Strategic Cascade

KPI/Measure ( Owner/ Supporter)

Policy - Target

KPI/Measure ( Owner/ Supporter)

Role

KPI/ Measure

Strategy TranslationOrganization Target Activity

Vision Strategic Issue Goal Strategy

Strategy

Strategy

Goal Strategy

Strategic Issue

Measure

MeasureKPI

Target

Weight

Owner Supporter

Target

Owner Supporter

Organization

Business

Strategy TranslationOrganization Target Activity

Business Target

Vision Strategic Issue Goal Strategy

Strategy

Strategy

Goal Strategy

Strategic Issue

Measure

MeasureKPI

Target

Weight

Owner Supporter

Target

Owner Supporter

Organization

Business

Strategy TranslationBusiness Target Activity

Vision Strategic Issue Goal Strategy

Strategy

Strategy

Goal Strategy

Strategic Issue

Measure

MeasureKPI

Target

Weight

Owner Supporter

Target

Owner Supporter

Business

Personal

Strategy TranslationBusiness Target Activity

Vision Strategic Issue Goal Strategy

Strategy

Strategy

Goal Strategy

Strategic Issue

Measure

MeasureKPI

Target

Weight

Owner Supporter