balanced scorecard.ppt

The Balanced Scorecard Planning for long-run organizational success The Balanced Scorecard:A Good Idea in 1992 The Balanced Scorecard:A Great Idea by 2002 50% usage in Fortune 500 Harvard Business Review “Hall of Fame” 50,000+ BSC on-line members Balanced Scorecard Hall of Fame Implemented Strategies and Achieved Breakthrough Results… Fast Question:How can complex organizations achieve results like this in such short periods of time? A Gap Exists Between Mission-Vision-Strategy and Employees’ Everyday Actions The Balanced Scorecard Links Vision and Strategy to Employees’ Everyday Actions Balanced Scorecard Balance between Financial measures of performance Long-range competitive abilities Balanced Scorecard Four aspects of firm performance Financial Customer Internal business Innovation and learning Financial Perspective How do we look to stockholders? Survive Succeed Prosper Customer Perspective How do our customers see us? New products Responsiveness Quality Internal Business Perspective At what must we excel currently? Manufacturing/service excellence New product/service introduction Innovation and Learning Perspective Can we continue to improve and create value? Technological leadership Time to market Employee training and satisfaction Perspectives are Interrelated Innovation pleases customers which are necessary for good financial results Good financial results make financing improvements possible The Complete Balanced Scorecard Strategy Map Overall Concepts Not just a set of measures Measures must relate to strategy Critical success factors Measures are interrelated Must understand how the perspectives influence each other Overall Concepts Not a quick process Implementation requires Thought Analysis Data-gathering Time Overall Concepts Thought What is our strategy? What is critical to implementing the strategy? How can we measure our progress? Overall Concepts Analysis What are the linkages between functions? Wha