BALANCED SCORECARD

Measures that drive performance

BY Adwitee Chandra (12020241109) Shikha Bose (12020241135) Rohan Arora Gandharv Gaurav Rishabh Patel

BALANCED SCORECARD
A strategic planning and management system used to align

business activities to the vision statement of an organization

Helps managers at all levels monitor results in their key areas Enables organization to document and define the cause-effect

relationships between key measures, processes and functions

By linking measures directly to strategic initiatives, the

organization stays focused and is able to move towards the longterm goals

FINANCIAL PERSPECTIVE
Strategic goal : Long-Term shareholder value
Two drivers of this goal : (a) Revenue growth

- Expand Revenue Opportunities - Enhance Customer Value

(b) Cost efficiency

- Improve Cost Structure - Increase Asset Utilization

CUSTOMER PERSPECTIVE
It covers following elements : i. Customer acquisition ii. Customer retention iii. Customer profitability iv. Market share v. Customer satisfaction i. ii. iii. iv. v.

Achieved by following parameters : Price Quality Service Availability Brand

INTERNAL PROCESS PERSPECTIVE

Reflects processes in key business that should be

optimized to meet customers needs

Four main themes in this perspective : i. Operations Management Process ii. Customer Management Process

iii.Innovation Process
iv.Regulatory and Social Process

Strategic Objectives in Internal Process

i.

Operations Management Process - Processes that produce and deliver products and services - Supply, Production, Distribution Customer Management Process - Processes that enhance customer value - Selection, Acquisition, Retention, Growth Innovation Process - Processes that produce new products and services - New ideas, R & D Portfolio, Design / Develop, Launch Regulatory and Social Process - Processes that improve communities and the environment - Environment, Safety and Health, Employment, Community

ii.

iii.

iv.

LEARNING & GROWTH PERSPECTIVE

Reflects following strategic objectives that form foundation

for improving company performance :

i.

Human Capital - Skills, Knowledge, Attitude

ii. Organization Capital

- Culture, Leadership, Organization Development

iii. Information Capital

- Systems, Database, Networks

BENEFITS
Provides a common framework for strategic planning Assures clear communication of corporate strategy throughout the

enterprise

Focuses management on cause and effect relationships between processes

and key performance indicators

Provides key information by measuring the results of the strategic plans

and assessing the quality of tactical plans

A Balanced Scorecard should result in :

Improved processes, Motivated/educated employees, Enhanced information systems , Monitored progress , Greater customer satisfaction and Increased financial usage

CONCLUSION
Should be used as a communication, informing, and learning system, not

as a controlling system

The Four Perspectives permit a balance between short and long-term

objectives, between outcomes desired and the performance drivers of those outcomes and between hard objectives measures and softer more subjective measures.

A Balanced Scorecard should result in :

~ Improved processes ~ Motivated/educated employees ~ Enhanced information systems ~ Monitored progress ~ Greater customer satisfaction , and ~ Increased financial usage