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Balance Score Card

The Balanced Scorecard is a strategic planning and management system that monitors organizational performance against strategic goals. It was developed in 1992 by Kaplan and Norton to provide a more "balanced" perspective beyond just financial measures. The Balanced Scorecard approach measures performance across four perspectives: financial, customer, internal business processes, and learning and growth. Within each perspective, an organization defines objectives, measures, targets and initiatives. The Balanced Scorecard helps organizations align activities to their vision and strategy and improve performance by focusing on key drivers of future success.

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66 views

Balance Score Card

The Balanced Scorecard is a strategic planning and management system that monitors organizational performance against strategic goals. It was developed in 1992 by Kaplan and Norton to provide a more "balanced" perspective beyond just financial measures. The Balanced Scorecard approach measures performance across four perspectives: financial, customer, internal business processes, and learning and growth. Within each perspective, an organization defines objectives, measures, targets and initiatives. The Balanced Scorecard helps organizations align activities to their vision and strategy and improve performance by focusing on key drivers of future success.

Uploaded by

k chenna
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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THE BALANCED SCORECARD

APPROACH

BY
SUMAYYA QUADRI

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Page 1
WHAT IS BALANCED SCORECARD?

The Balanced Scorecard is a


strategic planning and management
system used to align business
activites to the vision and strategy
of the organization by monitoring
perfomance against strategic goals

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BALANCED SCORECARD Concept

 It was publishes in 1992 by kaplan and


Norton, a book followed in 1996

 Traditional performance measurement


that only focus on external accounting
data are obsolete

 The approach is to provide ‘balance’ to


the finacial persperctive.

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Why use a Balance Scorecard?

• Improve organisational performance by


measuring what matters
• Increase focus on strategy and results
• Align organization strategy with workers on a
day-to-day basis
• Focus on drivers key to future performance
• Improve communication of the organization’s
Vision and Strategy
• Prioritize Projects / Initiatives

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4 Original Business Perspectives

The Balanced
Scorecard model
suggest that we
view the
organization from
4 perspective

Then Develop
metrics, collect
data and analyze it
relative to each of
these perspectives

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4 Business Perspective Question

• Financial
 What must we do to create sustainable economic value?

• Internal Business Process


 To satisfy our stakeholders what must be our levels of productivity, efficiency, and
quality?

• Learning and Growth


 How does our employee performance management system, including feedback to
employees, support height performance?

• Customer
 What do our Customer require from s and how are we doing according to those
requirements

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Balanced Scorecard Strategy Map

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Key Implementation Success Factors

• Obtaining executive sponsorship and commitment

• Involving a broad base of leaders, managers and employees

• Enhance information system

• Monitored Progress

• Beginning interactive (two-way) communication first

• Getting outside help if needed

• Greater Customer Satisfaction

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Scorecard Disadvantages
• It is not a tool you can just think up one night to solve a problem. Instead, it
is recommended that you hold a meeting to plan out what goals you would
like to see your company reach in each of the four above areas.

• while the balanced scorecard gives you an overall view of the four areas for
concern in business growth and development, these four areas do not paint
the whole picture. The financial information included on the scorecard is
limited. Instead, to be successfully implemented, the balanced scorecard
must be part of a bigger strategy for company growth

• many companies use metrics that are not applicable to their own situation. It
is vitally important when using balanced scorecards to make the information
being tracked applicable to your needs. Otherwise, the metrics will be
meaningless.

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Thank You for your time

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