1. The Balanced Scorecard Measures That Drive Performance

2. Contents Concept of BSC Example of BSC Strategy Map The Strategy Focused Organization Lesson Learned 1 2 3 4 5

3. Definition of Balance Scorecard A carefully selected balanced set of measures derived from the drivers of strategies that represent a tool for leaders to use in communicating strategic direction to the organization and motivating change. BALANCE STRATEGY

6. Example of Balanced Scorecard ECI : Electronic Circuits Incorporated. Semiconductor company Financial Perspective GOALS MEASURES Survive Succeed Prosper Cash flow Quarterly sales growth and operating income by division Increased market share and ROE Customer Perspective GOALS MEASURES New products Responsive supply Preferred suppliers Customer partnerships % of sales from new products On-time delivery (defined by customer) Share of key accounts’ purchases Number of cooperative engineering efforts Internal business Perspective GOALS MEASURES Technology Capability Manufacturing excellence Design productivity New product introduction Manufacturing geometry versus competition Cycle time, unit cost, yield Silicon efficiency, engineering efficiency Actual introduction schedule versus plan Growth and Learning Perspective GOALS MEASURES Technology leadership Manufacturing learning Product focus Time to market Time to develop next generation Process time to maturity % of products that equal 80% of sales New product introduction versus competition

7. Strategic Theme: Operating Efficiency Profitability Financial Learning Increase Revenue Ground crew alignment Lowest prices Lower Costs Customer Internal Fast ground turnaround Flight is on time - Key tool to implement your strategy - Give clear line of sight into ● How a company will achieve its desired outcome ? ● How the jobs are linked to overall objectives? ● Cause & Effect link ● What’s missing? Strategy Map

9. BSC Strategy Map Employee Competencies Technology Corporate Culture Build the franchise through innovation Increase customer value Achieve operational excellence Become good corporate citizen through regulatory & environment processes Operational Excellence Price Quality Time Selection Product/Service attribute Service C/R Relationship Smart Shopper Image Customer acquisition, Retention, satisfaction Internal Process Perspective Learning & Growth Perspective Customer Perspective Financial Perspective Revenue from new source Customer Profitability Operating cost per unit Asset utilization Improve shareholder value Revenue Growth Strategy Productivity Strategy Build franchise Increase Value Improve cost structure Improve use of asset

10. BSC Strategy Map Price Quality Time Selection Operational Excellence Service Customer Intimacy C/R Best in class Product leadership Product/Service Attribute Relationship Image Relationship Image Relationship Image Trusted Brand Time Selection Smart shopper General requirement Differentiators Product/Service Attribute Product/Service Attribute

11. The Five Principles 1. Translate the strategy to operational terms. 2. Align the organization to the strategy. 3. Make strategy everyone’s job. 4. Make strategy a continual process. 5. Mobilize change through executive leadership Source: The Strategy Focused Organization, Norton & Kaplan The Strategy Focused Organization

12. BSC - a tool: ● Dialog and communication ● Present a great amount of results ● To get the ”whole picture” ● Serve as a basis for a rewarding-system ● Adjustable ● Keep it simple Lessons Learned

13. Thank You !

15. # Case “Mobil NAM&R” BSC strategy map