Balanced Score Card is a road map to drive corporate performance. How to translate your strategy into action.

1. The Balanced Scorecard
Creating Strategy Map to Drive
Corporate Performance
Prepared by : Gajendra Khare
Founder Director – Siddhartha Consultancy Services
www.scsuniversal.com

2. balanced Scorecard -Defined
Was first published in 1992 by Kaplan and Norton,
The Balanced Scorecard is a strategic planning and management
system used to align business activities to the vision and strategy
of the organization by monitoring performance against strategic
goals.
o Translate strategy into action
o Planning for long term organizational success
Balance between
- Financial measure and performance
- Long range competitive abilities
- Offers balanced view of the organization upon which they can
further add-on
Prepared by Gajendra Khare

3. Balanced score card
perspectives
A. Financial
How do we succeed financially?
B. Customer
How do we appear to our
customers?
C. Internal Process
At what processes must we excel?
D. Learning and Growth
How do we sustain our ability to
change and grow?

4. Why BSC
 Focus on key things needed
to achieve breakthrough
performance
 Integration of various
corporate program like
Quality, Business process re-
engineering and Customer
service initiatives
 Communication and
understanding of business
goals and strategies at all
levels
 Provide comprehensive
picture of business operation

5. We Use the Scorecard to Articulate
Strategic Hypotheses in Cause-effect
Terms
Financial
Results To Drive Financial
Success...
Customer
Benefits Needed to Deliver Unique
Sets of Benefits to Customers...
Internal
Capabilities
To Build the Strategic Capabilities..
Knowledge, Skills, Systems, and Tools Equip our people

6. Managing performance with BSC
 Balances – Financial and
non Financial measured
 Balances – short term
and long term measures
 Balances – performance
Driver with outcome
measures
 Leads to Strategic focus
and organizational
alignment

7. Balanced Scorecard Measurements

8. Balanced Scorecard Strategy Map

9. Process – Strategy and BSC
Strategic Outcome
Mission – why we Satisfied shareholders
exists Strategy
Map-
Translate
the Delighted Customers
strategy
Strategy –
Vision – what Balanced
Our game
we want to be
Plan Score Excellent Process
Cards –
Measure
and Focus
Motivated workforce
Values – What
is important to
us

10. Departmental Level Score Card example

11. Key Implementation Success
Factors…
 Obtaining executive
sponsorship and
commitment
 Involving a broad base of
leaders, managers and
employees in scorecard
development
 Choose the right Scorecard
Champion
 Beginning interactive (two-
way) communication first
 Viewing the scorecard as a
long-term journey rather
than a short-term project
 Getting outside help if
needed

12. The Successful Scorecard
 Is a dynamic process –
 continues to set higher targets
and achieves them –
 Define jobs strategically
 from the perspective of where
it fits in with the strategic
business goals
 Supports joint decision
 making about what you
do/don’t do based on strategic
goals

13. Scorecard Potential
Pitfalls & Criticisms
 Lack of a well Defined Strategy
 The balanced scorecard relies on a
well defined strategy and
understanding of linkages between
strategic objections and metrics.
Without this foundation the
implementation could fail.
 Too much focus on the lagging
measures
 Focusing on only the lagging
measures may cause a lack of priority
or opportunity for the leading
measures.
 Use of Generic Metrics
 Don’t just copy metrics from another
firm. Identify the measures that apply
to your strategy and competitive
position .
 Self-serving managers
 Managers whose goal is to achieve a
desired result in order to obtain a
bonus or other self reward.

14. Thank YOU