Balanced Scorecard is a Strategy Management System developed by Professors Kaplan and Norton. It is probably the most comprehensive system/tool in the modern world. It allows an organization balance its Strategy across 4 perspectives (Financial, Customer, Internal Process and Learning and Growth Perspectives). It further lets an organization break down each of these 4 perspectives based on 4 criteria which are Objectives, Measures, Target and Initiatives. There is a lot that ISO Implementers and Auditors need to learn from a Balanced Scorecard that will help in better delivering ISO engagements. This webinar will take a critical look at what is Balanced Scorecard and what ISO Consultants need to know to about it. Main points covered: • What is a Balance Scorecard? • How Balance Scorecard allows organization to balance its Strategy across 4 perspectives (Financial, Customer, Internal Process and Learning and Growth Perspectives) • How an organization breaks down each 4 perspective based on 4 criteria (Objectives, Measures, Target and Initiatives) Presenter: This webinar was presented by Orlando Olumide Odejide, who is the Chief Trainer for Training Heights Limited. Orlando is an experienced Enterprise Architect and Programme Director working on various technology solutions including SharePoint, SQL Server, Oracle, SAP, Odoo and Qlikview Technologies for clients in the Financial Services, Government and Manufacturing Sectors. Link of the recorded session published on YouTube: https://youtu.be/XPPj9XhXl0s

1. Exploring Payment Platforms: ISO
20022 and 8583
Orlando Olumide Odejide
What ISO Management
Systems can Learn from
Balanced Scorecard

2. Orlando Olumide Odejide
Enterprise Architect
Orlando Olumide Odejide is PECB Certified Trainer. He is an experienced Enterprise Architect and
Programme Director working on various technology solutions for client in the Financial Services,
Manufacturing and Public Sectors.
His expertise spans various ISO standards and methodologies such as ISO 27001, ISO 20000, ISO
22301,COBIT, CMMI, TOGAF, PRINCE2 and ITIL.
234-8092061793
orlando@trainingheights.net www.trainingheights.net/
linkedin.com/orlando-olumide-odejide-a7b79927

3. Focus of this Webinar
1.What is Balanced Scorecard
(BSC)
2.Why is the entire Corporate
World adopting is a Strategy and
Performance Management Tool
3.What do ISO Implementation and
Standards have to learn from
BSC

4. Background
• Introduced in 1992, by Robert Kaplan and David Norton,
the Balanced Scorecard is the most commonly used
framework for ensuring that agencies execute their
strategies.
• Today, about 70% of the Fortune 1,000 companies utilize
the Balanced Scorecard to help manage performance.
• Balanced Scorecards are used as the roadmap for
creating the “Strategic Management System” for
Organizations and this helps drive overall organizational
performance.
• The 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.

5. Introduction
• Translates Strategy into Action
• Four perspectives:
– Customers
– Financial
– Internal [Business] Processes
– Learning And Growth [People]
• Focus on measuring Performance
• Balance should exist between these four perspectives

6. Why do BSC
• To achieve strategic objectives.
• To provide quality with fewer resources.
• To eliminate non-value added efforts.
• To align customer priorities and expectations with the
customer.
• To track progress.
• To evaluate process changes.
• To continually improve.
• To increase accountability

7. The Idea behind BSC
• Balances financial and non-financial measures
• Balances short and long-term measures
• Balances performance drivers (leading indicators) with
outcome measures (lagging indicators)
• Should contain just enough data to give a complete
picture of organizational performance… and no more!
• Leads to strategic focus and organizational alignment.

8. Strategy Focused Organization Key Elements
• Mission – What we do
• Vision – What we aspire to be
• Strategies – How we accomplish our goals
• Measures – Indicators of our progress

9. Strategy Focused Organization (SFO)
• Translate the strategy to operational terms.
• Align the organization to the strategy
• Make strategy everyone’s job.
• Make strategy a continual process.
• Mobilize change through executive leadership
Five Principles

10. Vision, Mission, Goals and Objectives

11. • Strategy in measurable terms
• Strategy is summarized on a Strategy Map over four views of
performance (perspectives).
• Must capture a cause-effect relationship between strategic
objectives over the four perspectives on the Strategy Map.
• Critical Components include:
- Measurements
- Targets
- Initiatives
• Everything must be linked: Goals to Objectives, Objectives to
Measurements, Measurements to Targets.

12. Selection Criteria for Performance
Measurements
 MEANINGFUL - related significantly and directly to organizations
mission and goal
 VALUABLE – measure the most important activities of the organization
 BALANCED – inclusive of several types of measures (i.e. quality,
efficiency)
 LINKED - matched to a unit responsible for achieving the measure
 PRACTICAL – affordable price to retrieve and/or capture data
 COMPARABLE – used to make comparisons with other data over time
 CREDIBLE - based on accurate and reliable data
 TIMELY - use and report data in a usable timeframe
 SIMPLE -- easy to calculate and understand

13. Four Views of Performance
• Strategy can be described as a
series of cause and effect
relationships.
• Provides a “line of sight” from
strategic to operational activity
– working on the “right” things.
“If we succeed, how will we look to
our stakeholders?”
Stakeholders
Strategic Objectives
“To satisfy our customers, at which
processes must we excel?
Internal Processes
"To execute our processes, how must our
organization learn and improve?"
Learning & Growth
“In order to succeed, what
investments in people and
infrastructure must we make?”
Agency Investments

14. Other Criteria for Scorecard Development
1. Relevant
– Addresses an operational or strategic performance issue
– Is results- or outcome-focused
– Provides useful information to enable decision making
2. Measurable
– Quantifiable and Objective
– Facilitates Analysis
– Can be done in a timely manner with high accuracy
– Data are available and collectable
3. Actionable
– Can be tracked to an appropriate person or team responsible for the
activity measured
– Measure relates to process inputs that can be controlled/adjusted to
address concerns

15. Example: Anonymous semiconductor
company. FINANCIAL Perspective
GOALS MEASURES
Survive Cash flow
Succeed Quarterly sales
Growth
Operating income by division
Prosper Increase in market share
Increase in Return on Equity

16. CUSTOMER Perspective
GOALS MEASURES
New products % sales from new products
% sales from proprietary products
Responsive
supply
On-time delivery
(customer definition)
Preferred
suppliers
Share of key accounts’ purchases
Ranking by key accounts
Customer
partnerships
# of cooperative engineering
efforts

17. INTERNAL BUSINESS Perspective
GOALS MEASURES
Technology
capability
Benchmark vs. competition
Manufacturing
excellence
Cycle time
Unit cost
Yield
Design
productivity
Silicon efficiency
Engineering efficiency
New product
innovation
Schedule: Actual vs. Planned

18. INNOVATION & LEARNING
Perspective
GOALS MEASURES
Technology
leadership
Time to develop next generation
Manufacturing
learning
Process time to maturity
Product focus % products equalling 80% of
sales
Time to market New product introduction vs.
competition

19. Financial Measures
• Funding/Cost
• Magnitude
• Resources Produced/Unit Cost
• Percent change from last period
• Risk Assessment
• Cost/Benefit
Growth: Sales Growth, Revenue, Productivity, Generate
new accounts & Increase Market Share
Sustain/Maturity: ROCE, EVA, Earn excellent, Return On
Capital Invested
Harvest/Decline: Cash Flow, Reduce Unit and Costs

20. Customer Measures
• Customer/potential customer groups (market segments)
aligned with products & services used
• Satisfaction: prompt, courteous, expert
• Complaint tracking and trending
• These are leading indicators: dissatisfied customers will
quickly find other suppliers
• Customer order fulfillment cycle time
• Customer satisfaction
• Customer price margin

21. Internal Process
• Do products/services conform to customer requirements:
dependable, accurate, complete
• Designed by those who know processes most intimately
• Mission-oriented and focused on process improvement
• Quality, Yield, Throughput
• Cycle time and Cost efficiency
• Order Fulfillment
• Procurement
• Repair service quality/downtime
• Warranty quality
How well are internal processes running?

22. Learning and Growth (People) Measures
• Individual and institutional learning: hiring, training,
technical tools, mentoring and development
• Employee satisfaction
• Employee retention
• Employee productivity
• Employee skill levels (certification rate)
• # suggestions per employee
• Employee learning curve (time to reach acceptable level
of output or quality)
In a learning organization, people are the main resource

23. How to set Targets
• Past performance trends per historical data.
• Performance levels of similar organizational units at a
comparable level that facilitates benchmarking.
• Best practices across the agency, the public sector or
the private sector. Must be at a pre-existing high level of
performance before you use this approach.
• For newly launched services, may have to establish a
baseline per a prototype test and extend out from this
point forward.
• For major strategic shifts, may have to set directly per
the plan itself without regard for hard data.

24. Checklist for Setting Targets
• Targets match up with measurements, one to one.
• Targets require improving current levels of performance.
• Targets are a stretch, but achievable: they may require
improvements to existing processes.
• Targets are quantifiable so that the target communicates
if the expected performance was met.
• Long-term targets are established before short-term
targets.
• Financial/Budget related targets are established before
non-financial targets.

28. Why Measure
• To determine how effectively and efficiently the process
or service satisfies the customer.
• To identify improvement opportunities.
• To make decisions based on FACT and DATA

29. Targets
• Targets need to be set for all measures
• Should have a “solid basis”
• Give personnel something for which to aim
• If achieved will transform the organization
• Careful not to develop measures/targets in
a fragmented approach:
i.e. Asking people to increase customer satisfaction has to be
backed up with the knowledge, tools, and means to achieve
that target.

30. Initiatives
Once measures and targets are established, it is the
responsibility of management to determine HOW the
organization will achieve its goals.
Measures are used to determine the effectiveness of
strategic initiatives.

31. Characteristics of Initiatives
• Leader Sponsored
• Requires Investments – people, funding, technology, etc.
• Has designated owners
• Includes deliverables or milestones
• Usually has time deadlines
• May be difficult to launch – not resourced
• Could encounter obstacles – people are confused,
conflicts with other functions

32. Initiatives Goals or Objectives
Value Mapping Project Improve identification and delivery of all
agency services across the full stakeholder
spectrum
Employee Rotation Program Improve the employee turnover and
satisfaction scores
Web Self Service Portal Reduce agency costs and streamline our
services for more direct service delivery
Common Knowledge Center Expand the overall knowledge base so that
inter-functions can learn from one another
Customer Survey and
Analysis Tool Program
Develop a more systematic process across
the entire agency to better connect to our
customers
Shared Service Center
Tracking System
Reduce reworks and overlaps between our
seven shared service centers
Initiatives should enable strategic execution

33. When you first launch your Initiative, you probably want to use an Output Measurement. Once
the Initiative is up and running, change your measurement to an Outcome to see if the Initiative is
really having strategic impact.
Initiative Output
Measurement
Outcome
Measurement
Lean Process / Six
Sigma
Number of Projects
Defined by Region
Overall reductions in errors,
reworks, and cycle times
Activity Based Costing
/ Management
(ABC/M)
% of Service Center
Outlets with ABC Models
in place for Allocation
Costs
Reductions in identified re-
activities per process study
Employee
Competency Models
% of Employees who
have a Competency
Model in place
Higher skill levels of
employees using the models
Going from Output to Outcome

34. Leadership Team
• Develops the division’s vision, strategy and goals
• Develops organizational objectives and targets
• Provides leadership, endorsement and vision for the
project
• Clears barriers to scorecard progress

35. Core Team
• Drafts the strategy map and scorecard
• Works with employees to develop measures supporting
strategic objectives
• Works with the Leadership Team to plan and implement
the Balanced Scorecard in the FAS Division

36. Reasons to Adopt BSC 1
• Focus on traditional financial accounting measures such
as ROA, ROE, EPS gives misleading signals to
executives with regards to quality and innovation. It is
important to look at the means used to achieve
outcomes such as ROA, not just focus on the outcomes
themselves.
• Executive performance needs to be judged on success
at meeting a mix of both financial and non-financial
measures to effectively operate a business.

37. Reasons to Adopt BSC 2
• Some non-financial measures are drivers of financial
outcome measures which give managers more control to
take corrective actions quickly.
(Example: controls in jet cockpit for pilot)
• Too many measures, such as hundreds of possible cost
accounting index measures, can confuse and distract an
executive from focusing on important strategic priorities.
The balanced scorecard disciplines an executive to
focus on several important measures that drive the
strategy.

38. BSC Good Practices 1
• BSC reviewed regularly to enhance operational decision-
making
• Success of initiatives assessed based on DATA… not
opinions
• Leading indicators evaluated to confirm accuracy of
assumptions

39. BSC Good Practices 2
The BSC is a “Living Document” that requires regular
revision of objectives, measures and initiatives:
– How are we doing?
– Are we measuring the right things?
– What initiatives do we need to get us where we want to
go?
– Have our organizational goals changed?

40. Advantages of BSC
 Simple to Use and Understand
 Based on Vision and Strategy
 Multidimensional
• Quantitative and Qualitative Measures
• Current and Future
 Provides Measurement of and Method for
Improving our Services
 Ties QI initiatives together
 Serves as a Communication Tool

41. Thank You and Questions
orlando@trainingheights.net
N.B: Balanced Scorecard Books from Kaplan and
Norton.

42. ?
QUESTIONS
THANK YOU
234-8092061793
orlando@g4vonline.com www.trainingheights.net/
linkedin.com/orlando-olumide-odejide-a7b79927