Enables companies to track financial
results while simultaneously build
capabilities and acquire intangible VISION & INTERNAL
assets from three additional STRATEGY PROCESS
those of customers,
internal business processes and
learning and growth AND
4. Balanced Scorecard
It is discovered as the cornerstone of a new strategic management
It addresses a serious deficiency in traditional management system:
their inability to link a company’s long term strategy with its short
5. The balanced scorecard replies on four
processes to bind short-term activities to
TRANSLATING COMMUNICATING BUSINESS FEEDBACK AND
THE VISION AND LINKING PLANNING LEARNING
10. Scorecard supplies a framework and focuses
on many critical management processes:
Strategic Feedback and
11. Translating the Vision
Outlines what the organization wants to be
For a vision to be successful:
expressed as an integrated set of objectives and measures.
agreed upon by all senior executives.
describe the long-term drivers of success.
12. Translating the Vision
Should address to four perspectives:
Internal Business Process
Learning and Growth
13. Communicating and Linking
To align employees’ individual performances scorecard users engage in
• Communicating and educating
• Setting goals and
• Linking reward to performance measures
14. The personal scorecard
The scorecard contains three
levels of information:
Individuals and teams
articulate with business
units ad corporate
15. Feedback and Learning:
“I can continually test my strategy. Its like performing real time research.”
Single Loop not sufficient enough, nowadays strategists must become
capable for double loop. However it does have some shortcomings.
Tools address performance from one perspective
It does not involve strategic learning
16. Feedback and Learning:
Balance scorecard supplies three elements essential for strategic planning:
Articulates the companies vision
Supplies the essential strategic feedback system
Scorecard facilitates the strategy review
18. Strategic learning makes the balance scorecard unique from any other
and is an invaluable asset in making a new strategic system.
19. Companies nowadays are using scorecard to:
Clarify and update strategy
Communicate strategy through out the company
Align unit and individual goals with the strategy
Link strategic objectives to long term targets and annual
Identify and align strategic initiatives
Conduct periodic performance reviews
20. How to built a strategic management system
1. Clarify the Vision.
2. Communicate to middle managers and develop business unit
3. Eliminate nonstrategic investments and launch corporate change
4. Review business unit scorecards
5. Refine the vision
21. How to built a strategic management system
6. Communicate the balanced scorecard and establish individual
7. Update long range plan and budget.
8. Conduct monthly and quarterly reviews.
9. Conduct annual strategy review
10. Link everyone’s performance to balanced scorecard.