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2. Content
Barriers to Strategic Planning
Rationale for use of Balanced Scorecard
Balanced Scorecard Model
Perspectives in Balanced Scorecard
Strategy Map for Balanced Scorecard
Implementing Balanced Scorecard
Challenges in implementing Balanced Scorecard
Dashboard with Balanced Scorecard perspective
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3. Barriers to Strategic Planning
Vision Barrier
It often happens that the workforce does not
understands the strategy
People Barrier
Mostly, managers have their incentives tied
linked to attainment of strategy rather than profits
Resource Barrier
The budgets are often not linked to the strategies
leading to failure in it execution
Management Barrier
Executives often do not spend time in
discussing the strategies
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4. Rationale for use of Balanced Scorecard
Better Management
Information
Improved Performance
Reporting
Better Strategic
Planning
Improved Strategy
Communication & Execution
Better Alignment of
Projects & Initiatives
› Provides a powerful
framework for building
and communicating
strategy
› Enables managers to
think about cause-and-
effect relationships
between the different
strategic objectives
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› Enables effective
communication internally
and externally
› Facilitates the
understanding of the
strategy and helps to
engage staff and external
stakeholders in the
delivery and review of
the strategy
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› Helps organizations map
their projects and
initiatives to the different
strategic objectives
› Ensures that the projects
and initiatives are tightly
focused on delivering the
most strategic objectives
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› Helps organizations
design key performance
indicators for their
various strategic
objectives
› Ensures that company is
measuring what matters
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› Guides in the design of
performance reports and
dashboards
› Ensures that
management reporting
focuses on the most
important strategic
issues and helps the firm
monitor the execution of
their plan
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5. Balanced Scorecard Model
VISION
Your text here
MISSION
“what is our plan to achieve our
Mission & Vision?”
FINANCIAL PERSPECTIVE
“If we succeed, how will we look to
our stakeholders & customers?”
CUSTOMER PERSPECTIVE
“To achieve our mission, how must
we look to our customers?”
STAKEHOLDER PERSPECTIVE
“To achieve our mission, how must
we look to our stakeholders?”
INTERNAL PROCESSES
“To satisfy our customers &
stakeholders, at which business
processes must we excel?”
LEARNING & GROWTH PERSPECTIVE
“To achieve our mission, how must
our organization learn & improve?”
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6. Perspectives in Balanced Scorecard
› Covers the financial goals of an organization and enables management to track
financial success
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Financial Perspective
› Focus is on establishing excellent relationships with customers and clients
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Customer Perspective
› Focus is on stakeholders in lieu of achieving the business mission
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Stakeholder Perspective
› Organization determines how to excel at its core operations with the intent of
meeting customer needs, satisfying stakeholders, and demonstrating good financial
performance
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Internal Process Perspective
› Incorporating training, knowledge management, building staff capacity, developing
leadership, using technology effectively and changing the corporate culture as
necessary to excel at sustaining change and improvement
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Learning & Growth Perspective
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7. Strategy Map for Balanced Scorecard
Mission
Customer
Internal Business
Processes
Learning & Growth
Financial
Stakeholder
Monitor best practices in
training
Your text here Your text here
Grow private sector
revenue
Reduce
advertising budget
Your text here
Effective Training
Incentives
Timely & Accurate
Proposals
Appropriate vacant
space
Recruit executives with target
industry experience
Develop GIS system for
building & site inventory
Your text here
Expand # of trained
workers in labor force
Increase sales tax
base in region
Expand job opportunities
for training spouses
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8. Implementing Balanced Scorecard
02 03 04 05
Technical
Implementation
Organizational
Implementation
Technical
Integration
Operation
01
Model
Synthesis
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10. Model Synthesis
Responsibility Methodology
The owner of the Balanced Scorecard/ Project Manager Process consultancy, Workshops, Management Interviews
Effort
Strategy Synthesis
Customer: 10 – 200 Days
Consultant: 5 – 100 Days
Measure Synthesis
Customer: 15 - 30 Days
Consultant: 5 – 20 Days
Calendar Time
Strategy Synthesis
3 – 36 Months
Measure Synthesis
1 – 3 Months
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12. Technical Implementation
Responsibility Methodology
Implementation Consultant Workshops, off-site implementation
Effort
Installation 1 Day
Training 2 Days
Implementation 1 – 5 Days
Custom Reporting 1 Day
Calendar Time
1 – 6 Months
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14. Organizational Implementation
Responsibility Methodology
The owner of the Balanced Scorecard/ Project Manager Process consultancy, Process Development, Workshops
Effort
5 – 20 Days
Calendar Time
1 – 12 Months
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16. Technical Integration
Responsibility Methodology
Implementation consultant/ Customer IT Department On-site & Off-site implementation
Effort
Analysis & Specification 5 – 100 Days
Implementation 1 – 100 Days
Calendar Time
1 Week – 6 Months
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18. Operation of the BSC System
Responsibility
Scorecard owners
Effort
Continuously 2 Hours/ Month/ Scorecard
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19. Challenges in implementing Balanced Scorecard
Too few measures per perspective
› With constructing few measures in each perspective, fails to obtain a balance between
leading and lagging indicators or non-financial and financial indicators
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Adopting too many indicators
› Organization will lose focus and cannot find any linkage between indicators
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Lack of senior management commitment
› With Delegating project to middle management and defining the project as performance
measurement leads to failure as it misses focus and alignment to implement strategy
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Development process takes too long
› In case the implementation takes too long, it can happen that during the implementation
process, the strategy has changed. This may lead to the fact that some of indicators have
become obsolete and requires new indicators.
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Measures selected for the scorecard do not
reflect the organization's strategy
› Organization may try to apply all their KPIs into each perspective without screening only for
the measures that are linked to its strategy
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Challenges
Description
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20. Dashboard with Balanced Scorecard Perspective
0$
100$
200$
300$
400$
500$
Jan'18 Feb'18 Mar'18 Apr'18 May'18 Jun'18 Jul'18 Aug'18 Sep'18 Oct'18 Nov'18 Dec'18
Net Sales
Net Sales Target Growth
FINANCE PROCESS
Percentage of processes that have been escalated 5%
Percentage of processes that are over 4 hours old 15%
Number of processes that are 4 days old 0
KPI Performance
CUSTOMER
Very Unsatisfied
10%
Unsatisfied
10%
Neutral
20%Satisfied
40%
Very Satisfied
20%
Customer Satisfaction
L & G
Employee Engagement
0
20
40
60
80
100
Engagement Score - MoMEngagement Score
85%
-2.3%
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23. About Us
Values Client
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Target Audience
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Creative
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25. Our Mission
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Our Vision
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Our Mission
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Our Goal
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26. Financial
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365$
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370$
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360$
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27. Address
# street number, city, state
Contact Numbers
0123456789
Email Address
emailaddress123@gmail.com
Thank You
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