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3. A performance metric used in strategic
management to identify and improve
various internal functions of a business and
their resulting external outcomes
Data collection is crucial to providing quantitative results
Used to measure and provide feedback to organizations
As the information gathered is interpreted by
managers and executives and used to make
better decisions for the organization
Concept
3
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4. Increases focus on
strategy & results
Align organization
strategy with workers
Improves communication of
vision & strategy
Improves Organization
performance
Prioritize Projects
Initiatives
Focuses on future
performance
Why BSC?
Need for BSC
4
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5. BSC- Perspectives
5
Perspective Generic Measurements
Financial Return of Capital Employed, Economic value added, Sales growth, Cash flow
Customer Customer satisfaction, retention, acquisition, profitability, market share
Internal Business Process
Includes measurements along the internal value chain for:
• Innovation- measures of how well the company identifies the customers’ future needs.
• Operations- measures of quality’, cycle time and costs.
• Post Sales Service- measures for warranty, repair and treatment of defects and returns.
Learning and Growth
Includes measurements for:
• People- employee retention, training, skills, morale.
• Systems- measure of availability of critical real time information needed for front line employees.
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6. BSC Perspectives- Measurement
6
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Measures Targets Initiatives
Objectives
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“To succeed financially, how should
we appear to our shareholders?”
Financial
Measures Targets Initiatives
Objectives
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“To satisfy our shareholders and customers,
what business processes must we excel at?”
Internal Business Process
Measures Targets Initiatives
Objectives
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“To achieve our vision, how will we sustain our
ability to change and improve?”
Learning and Growth
Measures Targets Initiatives
Objectives
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To achieve our vision, how should we
appear to our customers?”
Customer
Vision &
Strategy
7. Balanced Scorecard Implementation
7
Position of scorecard in company process
Business Strategy
Specify Goals
Implementation
Review of Target
Achievement
Financial
Perspective
Internal
Perspective
Customer
Perspective
Learning &
Growth
Perspective
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8. BSC Strategy Map
8
Customer Value Proposition Operational excellence
ProductService Attributes
Price Quality Time Functionality
Relationship
Service Relationships
Image
Brand
Customer Retention
Customer Acquisition
Product Leadership
Customer Intimacy
Financial
Perspective
Customer Value
Perspective
Internal
Perspective
Learning and
Growth Perspective
Customer Satisfaction
Improve Shareholder Value
Revenue Growth Strategy Shareholder Value ROCE Productivity Strategy
Build
Franchise
New Revenue Sources
Increase
Customer Value
Customer Profitability
Improve
Cost Structure
Cost Per Unit
Improve
Asset Utilization
Asset Utilization
“Be a Good Corporate
Citizen” (Environmental
Processes)
“Achieve Operational
Excellence”
(Operational Processes)
“Increase Customer
Value”
(Customer Management
Processes)
“Build the Franchise”
(Innovation Processes)
A Motivated and Prepared Workforce
Climate for Action
Strategy Competencies Strategic Technologies
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9. Scorecard- Department Level
What technologies and business opportunities/challenges are emerging?
Internal efficiency
+
Customer satisfaction
=
service success
What must we
excel at?
How do users
see us?
How do we look to
management?
Goals Measures
User Orientation
Goals Measures
Future Readiness
Goals Measures
Business Value
Goals Measures
Business Value
What can we do meet the
future needs of users?
Are we satisfying
user needs?
How can we continue to
improve and create value?
Are we working
efficiently?
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10. Scorecard- Department Level (Example)
10
Financial
Goals Measures
Maximize value at
least cost
Cost to Spend Ratio
Maximize cost Savings
Purchasing
influenced savings
Timely payments
Delinquent
payment penalties
Maximize Productivity Ratios
Internal Business
Goals Measures
Acquisition Excellence
Assessment of internal
quality systems
Accurate, timely and
effective data collection
Assessment of
management information
systems
Customer
Goals Measures
Timeliness
On time delivery as
defined by customer
Quality
Quality of
product/service as
defined by customer
Service/ Partnership
Responsiveness as
defined by customer
Learning & Growth
Goals Measures
Meet present
mission goals
Self-assessment for
continuous improvement
Meet future mission goals
Self-assessment for
strategic/ tactical
planning
Employee Empowerment
Goals Measures
Quality of workforce Self Assessment
Quality of work
environment
Quality of environment as
defined by workers
Executive leadership
Quality/integrity of
Leadership as defined by
workers
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11. Customer
Perspective
Internal
Perspective
Financial
Perspective
Learning &
Growth
Perspective
BSC Execution Framework
11
Strategy Map Balance Scorecard Actions Plan
Process: Manufacturing Excellence
Objectives Measurement Target Initiative Budget
Theme: ROCE > xx%, Volume = xx,xxx units
Long term Shareholder Value ROCE > xx%
Operating Cost & Efficiency Cost / Unit Efficiency Monthly Monitoring
Capacity Utilization % Utilization Weekly / Monthly Monitoring
Improve Productivity Grow Revenue Capability Utilization
Trial Production
Spare Parts Production
Monthly Monitoring
Brand / Image Warranty Cost Weekly / Monthly Monitoring
Offer product & services that are consistent,
timely and low cost
Low Cost Manufacturing Man-hour per Unit Weekly Monitoring
World-Class Quality Standards Defect per Unit Daily Monitoring
World-Class Delivery Timing Sales Delivery Daily Monitoring
Low cost Word class Knowledge & Skilled Partner Direct Pass Rate Daily Monitoring
High Customer Satisfaction Market Feedback Weekly Monitoring
Customer satisfaction Enhance brand
Reinforce Brand Image Sales Volume Monthly Monitoring Prod. & Sales Mtg.
Ensure operational excellence as well as being
socially responsible
Productivity Cycle Time
Hourly Monitoring
Delivery
Meet Daily Plan
VVIP Daily Monitoring
Daily Monitoring
Continuous Improvement
KAIZEN
ICC
Monthly Follow-up
Specific Programmed
Operational Excellence Process Innovation NPI Timely Introduction Weekly Follow-up
Safety & Health
Industrial Accident
Commuting Accident
Cross Audits
Defensive Driving
Alliances with SBUs Socially Responsible
Environment
Toxic Waste Disposal
ISO 9002
Facility Readiness
Certification
Strategic jobs & systems Develop the Necessary Skills R&D Development Training & Skill Build-up
Skills Info , system Information Systems Availability ALC, Procurement, Financial Set-up, Test & Validation
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12. Performance Dashboard
12
For the month of Aug’19
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Learning & Growth Perspective
0
20
40
60
80
100
120
In
Percentage
(%)
Actuals Target Trends
50
100
0
August
Comments
After a good recovery in July we are
seeing another decline in August.
Focused attention must be placed on
training programmes.
Internal Perspective
0
20
40
60
80
100
120
In
Percentage
(%)
Actuals Target Trends
50
100
0
August
Comments
Generally below target we are not
recruiting fast enough and existing
staff have too many roles.
Financial Perspective
0
20
40
60
80
100
120
140
In
Percentage
(%)
Actuals Target Trends
50
100
0
August
Comments
After a poor start the financials are
picking up with a general trend
upwards. Need to recognise the
workforce are over utilised.
Customer Perspective
0
20
40
60
80
100
120
140
In
Percentage
(%)
Actuals Target Trends
50
100
0
August
Comments
General trend is upwards however we
are seeing a sharp decline this month.
May be connected to over-utilisation.
15. Our Mission
15
Our Vision
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Our Mission
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Our Goal
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16. Meet Our Team
16
Name Here
Designation
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Name Here
Designation
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Name Here
Designation
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17. About Us
17
Target Audiences
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Preferred by Many
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Value Clients
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18. Timeline
18
Start
Finish
2016
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2019
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2018
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2017
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2020
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19. Financial
19
Minimum
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20%
Medium
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40%
Maximum
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60%
20. 20
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Address
# 0123456789
Contact Number
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Email Address
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