BalancedScorecard-Universityof.pptVIP

Balanced Scorecard Kaplan Norton: HBR July-August 2005: repeat of 1992 seminal article Feb 2004: Strategy Map Oct 2005: Examples March 2006: Implementation examples Finland 2010 Perspectives GOALS PERFORMANCE MEASURES Financial perspective How do we look to shareholders? Customer perspective How do customers see us? Internal Business perspective (BPR) What must we excel at? Innovation Learning perspective Can we continue to improve create value? Finland 2010 Example: anonymous semiconductor company FINANCIAL perspective GOALS MEASURES Survive Cash flow Succeed Quarterly sales Growth Operating income by division Prosper Increase in market share Increase in Return on Equity Finland 2010 CUSTOMER perspective GOALS MEASURES New products % sales from new products % sales from proprietary products Responsive supply On-time delivery (customer definition) Preferred suppliers Share of key accounts’ purchases Ranking by key accounts Customer partnerships # of cooperative engineering efforts Finland 2010 INTERNAL BUSINESS perspective GOALS MEASURES Technology capability Benchmark vs. competition Manufacturing excellence Cycle time Unit cost Yield Design productivity Silicon efficiency Engineering efficiency New product innovation Schedule: Actual vs. Planned Finland 2010 INNOVATION LEARNING perspective GOALS MEASURES Technology leadership Time to develop next generation Manufacturing learning Process time to maturity Product focus % products equalling 80% of sales Time to market New product introduction vs. competition Finland 2010 2004 article: Strategic Readiness Strategy map: framework to link intangible assets to shareholder value creation Through the 4 perspectives 3 Intangible Asset categories essential to implement strategy (Learning Growth) Human Capital Skills, training, knowledge Information Capital Databases, information systems, networks, infrastructure Organizational Capital Culture, leadership, alignment with goals, knowledge sharing Finland 2010 Strate