BSC DTU

1. Scientific information report
Reporter: Trinh Le Tan

2. Robert Kaplan and David Norton’s
The Balanced Scorecard
Bridging the gap between short-term budgeting
and long-term strategy
Presented by Trinh Le Tan

3. Content
 1.1 The necessity of using Balanced scorecard.
 1.2 Introduction of Balanced scorecard
 1.3 The fact of applying Balanced scorecard in
Vietnam
 1.4. Proposing for medium and small business
in Vietnam

4. 1.1 The necessity of using Balanced
scorecard.
The evaluation of operation result in business is
changed by two factor:
 Increase in intangible asset
 Limitation of traditional measure
 Measure that driven performance: Balanced
scorecard

5. 1.2 Introduction of Balanced scorecard
The balanced scorecard is a
strategic planning and management system that
is used extensively in business and industry,
government, and nonprofit organizations
worldwide to align business activities to the
vision and strategy of the organization, improve
internal and external communications, and
monitor organization performance against
strategic goals

6. 1.2 Introduction of Balanced scorecard
 Robert Kaplan and David Norton first
publicized the balanced scorecard in a series of
journal articles and published this concept in
their book, The Balanced Scorecard.
 Since then it has evolved to become more
workable in practice, focusing more on design
processes.

7. 1.2 Introduction of Balanced scorecard
 The scorecard emerged in response to
organizations’ gap between short-term financial
activities and long-term strategy.
 It is not a replacement for budgeting but merely
a complement in the sense allows businesses to
set performance benchmarks in non-financial
areas.

8. 1.2 Introduction of Balanced scorecard
 Performance standards are specifically applied
to four perspectives: customer relations,
finance, internal processes and learning and
growth.
 To ensure that both short-term and long-term
goals are correlated, the scorecard relies on four
processes: translating the vision,
communicating and linking, business planning
and feedback and learning.

9. 1.2 Introduction of Balanced scorecard
 Translating the vision: helping all employees
understand how their day-to-day work
contributes to long-term goals.
 Communicating and linking: disseminating
long-term goals both up and down an
organizational hierarchy, ensuring that both
departmental and individuals objectives are in
alignment.

10. 1.2 Introduction of Balanced scorecard
 Business planning: taking long-term strategy
and using it as the basis for how resources and
capital are allocated.
 Feedback and learning: the scorecard enables
strategic and real-time learning because it
measures daily performance and spending in
the context of overarching goals, allowing
organizations to make necessary changes.

11. Balanced scorecard

12. 4 Perspective in Balance Scorecard

13. Strategic Objectives in Financial

14. Strategic Objectives in Customer

15. Strategic Objectives in Internal Process

16. Strategic Objectives in Learning and
Growth

17. 1.3 The fact of applying Balanced
scorecard in Vietnam

18. 1.4 Proposing for medium and small
business in Vietnam
 Define direction of business clearly
 Understanding of business model of manager
 Balance between long-term development and
daily high pressure.
 Direction of business development flexibility.

19. Thank you for your listening

20. Questions