BALANCED SCORE CARD

Balanced Scorecard
Meaning and Purposes The Balanced Scorecard is a strategic management system for establishing and communicating organizational vision, mission and strategy For aligning day to day work to the strategy. The provides a framework for measuring and managing strategies Monitors strategic success and guides the selection of strategic initiatives.

Key Differences Between BSC and other Performance Systems

Organizational development Takes account of customers; internal processes, learning & growth and financials Strategic management system Aligned to strategic direction Flexible and adaptable to business

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Others are: Budgets Stewardship Process efficiency Productivity Operational capacity Organizational capacity HR capacity Customer satisfaction

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Quality Employee development Timely delivery of services Productivity effectiveness Compliance costs

Developing a BSC

Development of strategic measures Development of plans for each department in line with strategic objectives Develop objectives and targets for departments Staff objectives and targets The objectives and targets must cover each quantrant

Common BSC performance Perspectives

Financial Return on investment

Customer/stakeholder
Internal business process

Customer satisfaction/retention
Process efficiency (quality, quantity, timeliness, efficiency)

Organization capacity

Employee knowledge, skills, attitudes, abilities, behaviors

Guidelines for Developing Perspectives

Limit the number of perspectives to 3-4 Focus on most important/critical benefits and values Include at three objectives for each perspective Use measures to track performance of objectives Set targets Use bench marks

Guidelines for measuring results

Results are outputs and outcomes what we actually accomplish Measures the organizations current performance in relation to internal business and customer needs Focus on the results of the work that we do Concentrate more on developing measures for customer perspective