putting balance scorecard to work

8/6/2019 Putting Balance Scorecard to Work

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PPUTTINGUTTING THETHE BBALANCEDALANCED

SSCORECARDCORECARD TOTO WWORKORK-- SR-12

Submitted By:

Shikha Sharma

Roll No - 856



Balanced ScorecardBalanced scorecard was proposed in the Jan ± Feb 1992

issue of HBR

It provides the executives with an comprehensive framework

that translates a companies strategic objective into a coherentset of performance measures

The scorecards provides the managers with four different

perspectives from which to choose (product, process, customer

and market development)

Balanced scorecard can serve as a focal point for which the

organization¶s efforts, defining and communication priorities to

managers, employees, investors and even customers



USES OF BALANCED SCORECARD

Clarify and update strategy

Communicate strategy throughout the company

Align unit and individual goals with the strategy

Link strategic objectives to long term targets &

annual budgets

Identify and align strategic initiatives

Conduct periodic performance reviews to learnabout and improve strategy



4

3-Clinic

2. Internal Processes2. Internal Processes

3. Customer 3. Customer

SatisfactionSatisfaction1. Innovation &1. Innovation &

LearningLearning

4. Financial4. Financial

Balanced ScorecardBalanced Scorecard -- PERSPECTIVES



INTERNAL PROCESS PERSPECTIVE

Internal business processes

Social process

How well are processes running

Are there appropriate ties to institutional missionHours with customers on new work

INNOVATION & LEARNING PERSPECTIVE

Employee training

Individual and institutional improvement

Continuous learning mode

Focusing training funds on results

µLearning' is more than 'training¶

BBALANCEDALANCED SSCORECARDCORECARD -- PERSPECTIVES



FINANCIAL PERSPECTIVE

Traditional need for financial data

Processing can be centralized and automated

Additional financial-related data, such as risk assessment

and cost-benefit data

CUSTOMER PERSPECTIVE

Customer focus

Customer satisfaction

Customer retentionChanging customer demands and needs



ROCK WATER

A Global leader in ground water engineering and construction

Vision: providing the highest standard of safety and quality to

clients

Five Strategic elements were:

� high level of service,

� customer satisfaction,

� continuous improvement of safety,

� equipment reliability,

� responsiveness and cost effectiveness



Rockwater senior management team transformed its

vision and strategy into balanced scorecard's four

sets of performance measures

Financial Perspective:Return-on-Capital Employed

Cash Flow

Project Profitability

Profit ForecastReliability

Internal Perspective:

Tender Success RateRework

Safety Incident Index

Performance Index

Project Closeout Cycle



Customer Perspective:Pricing Index

Customer RankingSurvey Customer

Satisfaction Index

Market Share

Innovation and Learning Perspective:Revenue from New Services

Rate of Improvement Index

Staff Attitude Survey

Number of Employee Suggestion

Revenue per Employees



APPLE COMPUTERS

Financial Perspective:�Shareholder value

Internal Perspective:�Core Competencies

Customer Perspective:�Market share

�customer satisfaction

Innovation and Learning

Perspective:

�Employee Attitudes

Apple computer development a balanced scorecard to focus senior management on a strategy that would expand discussions beyond gross

margin, return on equity and market share

The balance score card at apple serves as a planning device and not

as a control device

helped develop a language of measurable outputs for how to launch

and leverage programs



THANK YOU

putting balance scorecard to work

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