This presentation will give you an idea about the balanced scorecard and performance planning in Bhel.

1. THE IMPACT OF BALANCED
SCORECARD ON PERFORMANCE
PLANNING IN BHEL
Presented By
Soumya M.R
Roll No: PGDM 10-021
DCSMAT Trivandrum
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2. OVERVIEW
• About the company: BHEL , leading public sector company
(Navaratna), largest engineering and manufacturing enterprise
in India.
• It is the 12th largest power equipment manufacturer in the
world.
• 14 units in different parts of the country.
• Hyderabad unit one of main unit of BHEL with 8454Cr turn over.
• The main products are Turbo-generator sets and auxiliaries for
60 and 110 MW thermal utility sets
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3. VISION
• VISION
• A World-class Engineering Enterprise Committed to enhancing
Stakeholder Value.
• MISSION
• To be an Indian Multinational Engineering Enterprise providing Total
Business Solutions through Quality Products, Systems and Services in
the fields of Energy, Industry, Transportation, Infrastructure and other
potential areas.
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4. BALANCED SCORECARD
• originated by Robert Kaplan and David Norton in 1992.
• It is a framework that translates vision and strategy into performance
measures.
• Creates a balance between all perspective both financial and non-
financial.
• There is a linkage between all the parameters in a balanced scorecard
• There are lag and lead indicators in the Balanced Scorecard
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5. BALANCED SCORECARD ANSWER’S
• How should we appear to our customers? (Customer perspective),
• What should we excel at? (Internal business perspective),
• How should we sustain our ability to change and improve? (Learning
and growth or Innovation and learning perspective)
• How should we appear to our shareholders? (Financial perspective).
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6. CLARIFYING AND
TRANSLATING VISON
AND STRATEGY
COMMUNICATING AND STRATEGIC FEEDBACK
LINKING AND LEARNING
PLANNING AND TARGET
SETTING
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7. BALANCED SCORECARD
• Financial perspective: Consists of KPIs like Turn over, Return on capital
employed.
• Customer perspective: Direct orders booked by the unit, Delivery index
of on time .
• Internal processes perspective: Material consumption, completion of
engineering
• Learning and growth perspective: R ‘n’ D expenditure,
Commercialization of in-house developed products
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8. BALANCED SCORECARD
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9. BALANCED SCORECARD IN BHEL
• BSC is a part of E-MAP(PERFORMANCE MANAGEMNET SYSTEM)
started 2002-2003.
• The system covers Frontline Executives(E1-E4) and Middle level
Executives of BHEL(E5-E7).
• BSC is cascaded to various levels, ensuring proper alignment between
the objectives targets flowing from top to bottom.
• 212 BSC holders are there.
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10. CASCADING OF BALANCED SCORECARD
MEMORANDUM OF UNDERSTANDING WITH MINISTRY OF HEAVY INDUSTRY GOVERNMENT OF INDIA
CORPORATE BSC
UNIT BSC
DIVISION PRODUCT BSC
HOD BSC
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11. PERFORMANCE PLANNING
• Performance planning is initiated in the month of March upon the
finalization of budget.
• Identify appropriate KRAs from functional KRA Master
• If required, request for new KRAs and seek approval from HOD
• Set five levels of targets for each KRA
• Propose an action plan for achievement of each KRA Target
• Assign a weightage for each KRA
• Resolve any conflicts between Appraisee and Appraiser
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12. OBJECTIVES
• To know the awareness of employees about the BSC model
• To study the linkage of BSC to performance management system
• To study the various steps involved in framing the BSC
• To study interdepartmental dependencies
• To study the role of BSC in achieving performance targets.
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13. ANALYSIS
• Awareness: Good ,makes target setting easier.
• The linkage of BSC to performance management : good
• BSC helps to monitor and manage business.
• The unit level BSC is a prerequisite for framing the division BSC.
• Cascading BSC throughout the firm means there are consistent in the
application of BSC.
• Executive involvement is less for the development of divisional BSC.
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14. ANALYSIS
•Communication increases the cascading of BSC more effective in the
firm.
•Responsibility identification empowers employees which improves
organizational performance.
•Review of BSC needs to be done. Half yearly.
•Success of BSC depends on organizational culture .BHEL shares a
common culture.
•Success of the balanced scorecard depends on a successful team.
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15. SUGGESTIONS
• Assigning responsibility to the individuals.
• Action points and needs to be reviewed
• Cascading of level-leads to actionable KPIs.
• Feedback mechanism
• Encourage employee participation.
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16. CONCLUSION
• Balanced scorecard
• Analysis
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17. THANK YOU
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