SlideShare ist ein Scribd-Unternehmen logo
1 von 46
1
Managing
Corporate Performance
with Balanced Scorecard
2
You can download these
excellent slides at :
www.HR-Management-Slides.com
3
Contents :
1. Corporate Performance Scorecard
2. Strategy Map Framework
3. Four Perspectives in Balanced Scorecard
4. Identifying Key Performance Indicators
5. Strategy Map in Corporate Functions (HR, IT,
Finance and Marketing)
4
Corporate
Performance Management
5
Performance Management Framework
Identifying
Defining
Measuring
Monitoring
Reporting
Key
Performance
Indicators
Company
strategy
Vision
Mission
Strategy
Strategy Map
6
Three critical components for effective process of
performance management
Performance
Management
Infrastructure
Performance
Management
Culture
Performance
Management
Process
Performance management
cycle is continuous and
consistent
Culture that is based
on performance
accountability
Logistic support and
performance management
administration
Performance Management Component
7
STRATEGY
Plan and Execute
Monitor and Evaluate
Reward and Coach
Set Measures and Target
Performance Management Cycle
8
Managing Performance with
Balanced Scorecard
Balanced Scorecard is a management tool that
provides stakeholders with a comprehensive
measure of how the organization is progressing
towards the achievement of its strategic goals.
9
• Balances financial and non-financial measures
• Balances short and long-term measures
• Balances performance drivers (leading
indicators) with outcome measures (lagging
indicators)
• Leads to strategic focus and organizational
alignment.
Managing Performance with
Balanced Scorecard
10
4 Perspectives in Balanced Scorecard
If we succeed, how will
we look to our
shareholders?
Financial Perspective
To achieve our vision,
how must we look to our
customers?
Customer Perspective
To satisfy our customers,
which processes must we
excel at?
Internal Perspective
To achieve our vision, how
must our organization learn
and improve?
Learning & Growth
Perspective
The Strategy
11
Strategy and Balanced Scorecard
Mission –
Why We
Exist
Vision –
What We
Want to Be
Values –
What’s
Important
to Us
Strategy :
Our Game
Plan
Strategy
Map :
Translate the
Strategy
Balanced
Scorecard :
Measure and
Focus
Strategic
Outcomes
Satisfied
Shareholders
Delighted
Customers
Excellent
Processes
Motivated
Workforce
12
• The strategy map framework is presented in the
following slides.
• This framework describes the types of strategic
target that should be presented in each perspective,
namely the financial perspective, customers, internal
business process, and learning & growth perspective.
Strategy Map Framework
13
Cost Efficiency
Long-term Shareholder
Value
Revenue Growth
Price Availability BrandServiceQuality
Operations
Management
Processes
Human Capital
Customer
Management
Processes
Innovation
Processes
Regulatory
and Social
Processes
Organization Capital Information Capital
Strategy Map Framework
Financial
Customer
Internal Process
Learning & Growth
14
Financial Perspective
• In private companies, the financial perspective is the
main objective (ultimate goal) – without having to
sacrifice the interests of other relevant stakeholders
(community, environment, government, etc.)
• In the financial perspective, the strategic goal is the
long-term shareholder value. This goal is driven by
two factors, namely : revenue growth and cost
efficiency.
15
Long-term
Shareholder Value
Revenue Growth
Improve Cost Structure
Increase Asset Utilization
Cost Efficiency
Strategic Objectives in Financial
Expand Revenue
Opportunities
Enhance Customer Value
16
Customer Perspective
• This perspective is very instrumental, because without
customers, how can a company survive?
• Customer perspective covers the following elements:
• Customer acquisition
• Customer retention
• Customer profitability
• Market share
• Customer satisfaction
17
Price Availability BrandServiceQuality
Customer Acquisition
Customer Satisfaction
Customer Retention Customer Profitability
Market Share
Strategic Objectives in Customer
18
Internal Process Perspective
• This perspective reflects the processes in key business
that should be optimized in order to meet the needs of
the customers.
• There are four main themes in this perspective, namely:
• Operations Management Process
• Customer Management Process
• Innovation Process
• Regulatory and Social Process
19
Operations
Management
Processes
Customer
Management
Processes
Innovation
Processes
Regulatory
and Social
Processes
Processes that
produce and
deliver products
and services
Processes that
enhance customer
value
Processes that
create new
products and
services
Processes that
improve
communities and
the environment
• Supply
• Production
• Distribution
• Selection
• Acquisition
• Retention
• Growth
• New Ideas
• R&D Portfolio
• Design/
Develop
• Launch
• Environment
• Safety &
Health
• Employment
• Community
Strategic Objectives in Internal Process
20
Learning & Growth Perspective
• This perspective reflects the capability that a company
should have, namely:
• Human Capital
• Organization Capital
• Information Capital
• This perspective shows us that good human resource
development system, organizational system and
information system forms a solid foundation for improving
company performance.
21
Human Capital
Organization
Capital
Information
Capital
• Skills
• Knowledge
• Attitude
• Systems
• Database
• Networks
• Culture
• Leadership
• Organization
Development
Strategic Objectives in
Learning & Growth
22
Strategy Map Template
• The following slide displays the strategy map template
comprising of four perspectives : financial, customer,
internal business process, and learning & growth.
23
Improve
Cost Efficiency
Enhance Long-term
Shareholder Value
Increase Revenue Growth
Enhance
Brand Image
Build High
Performance Products
Achieve
Operational
Excellence
Develop Strategic
Competencies
Drive Demand
through Customer
Relation
Management
Manage Dramatic
Growth through
Innovation
Implement Good
Environmental
Policy
Build Learning
Culture
Expand Capabilities with
Technology
Strategy Map Template
Financial
Customer
Internal Process
Learning & Growth
Expand
Market Share
24
Identifying Key Performance
Indicators (KPI)
25
Vision
Mission
and Values
Strategy
Finance
Customer
Internal Business
Process
HR
Development
Key Performance
Indicators
Key Performance
Indicators
Key Performance
Indicators
Strategic Objectives
KPI = Measurement or
indicator that provides
information on how far we
have succeeded in
achieving the strategic
objectives
Key Performance Indicators (KPI)
26
• The measure of success must show clear, specific and
measurable performance indicators.
• The measure of success should be declared explicitly and in
detail so that it is clear what is being measured.
• Costs to identify and monitor the measure of success should
not exceed the value that will be known from the measurement.
Guidelines in Formulating the KPI
KPI Guidelines
27
Relevant to the
Strategic Objective
Does KPI have a linkage with the strategic
objectives?
Controllable Are the KPI achievements still under control?
Actionable Can any action be taken to improve the
performance?
Simple Is the KPI easy to explain?
Credible Is the KPI not easy to manipulate?
KPI Guidelines
28
KPI Family Dimension
Productivity Measures employee output (units/
transactions/ dollars), the uptime levels and
how employees use their time (sales-to-
assets ratio, dollar revenue from new
customers, sales pipeline).
Measures the ability to meet and/or exceed
the requirements and expectations of the
customer (customer complaints, percent
returns, DPMO -- defects per million
opportunities).
Quality
29
KPI Family Dimension
Profitability Measures the overall effectiveness of the
management organization in generating
profits (profit contribution by
segment/customer, margin spreads).
Measures the point in time (day/week/
month) when management and employee
tasks are completed (on-time delivery,
percent of late orders).
Timeliness
30
KPI Family Dimension
Process
Efficiency
Measures how effectively the management
organization incorporates quality control, Six
Sigma and best practices to streamline
operational processes (yield percentage,
process uptime, capacity utilization).
Measures how effectively the management
organization leverages existing business
resources such as assets, bricks and mortar,
investments (sales per total assets, sales per
channel, win rate).
Resource
Utilization
31
KPI Family Dimension
Cost
Savings
Measures how successfully the management
organization achieves economies of scale and
scope of work with its people, staff and
practices to control operational and overhead
costs (cost per unit, inventory turns, cost of
goods).
Measures the ability of the management
organization to maintain competitive economic
position in the growth of the economy and
industry (market share, customer
acquisition/retention, account penetration).
Growth
32
KPI Category Dimension
DirectThe actual raw data value as measured (e.g.,
sales volume).
Percent
The comparison of the changes in
performance of one value relative to the
same value at a different time, geography,
etc. (e.g., percentage change in sales vs.
last year).
33
KPI Category Dimension
Simple
Ratio
The comparison of one value relative to another to
provide a benchmark for comparison of
performance (e.g., average sales per day).
Index
A combination of several separate measures
added together that result in an overall indicator
of performance (e.g., (company sales
growth)/(industry sales growth) for a specific
geography).
34
KPI Category Dimension
Composite
Average
The addition of the weighted averages of several
similar measures that result in an overall composite
indicator of performance (e.g., customer satisfaction
composite is mixture of results from surveys, focus
groups and product returns).
Statistics
Multiple measures such as mean, variance,
standard deviation and variance that capture the
spread and distribution of the performance
measures (e.g., sales distribution by demographics,
geography, channel).
35
Strategy Map for
Corporate Functions (HR, IT, Finance and
Marketing)
36
Vision
Mission
Strategy
Integration between Corporate and
Division/Department
Corporate
Scorecard
Division
Scorecard
The Division Scorecard
is built by referring to the
corporate scorecard
37
Financial
Customer
Internal Process
Learning & Growth
Corporate
Finance
Corporate
Marketing
Production
Supply Chain
R & D
Corporate HR
Info
Technology
Corporate and Division Scorecard
38
Corporate and Division Scorecard
• Division Scorecard is formulated by looking at the four
perspectives in Corporate Scorecard.
• As shown in the previous slides, the learning & growth
perspective provides guidelines for developing scorecard at
the Human Resource and IT divisions, while the internal
process perspective provides guidelines for developing
scorecard at the supply chain division or R&D.
39
Corporate and Division Scorecard
Sample from GE Lighting Business Group
Level of Organization Financial Customer Internal Process Learning & Growth
Corporate Scorecard Increase profit margin Improve customer Increase inventory turns Increase level of
satisfaction level Improve internal process employee competency
Division Scorecard Optimize cost of production Improve customer Increase inventory turns Increase level of
Reduce inventory levels satisfaction level Improve internal process employee competency
Plant Scorecard Optimize cost of production Increase percent of Increase inventory turns Number of "on the
Increase yields ratio on time delivery Reduce number of defects job training" delivered
Increase labor productivity Reduce customer per million Number of performance
Reduce inventory levels complaints per million Improve quality incoming coaching session
materials
Maintain optimum equipment
speed
Frontline Employee Reduce waste Reduce equipment downtime Number of "on the
Scorecard Reduce overtime Reduce number of poor job training" attended
Increase production rates solders Number of performance
Reduce number of cracked coaching session
bulbs attended
The above example shows how the scorecard at corporate level is
cascaded to division level, and further to plant level and employee level.
40
Division Strategy Map Template
• The strategy map for HR Division, Information Technology
Division, Finance Division, and Marketing Division are
presented in the following slides.
41
Optimize HR Efficiency
Drive Long term
Shareholder Value
Enhance People & Organizational
Effectiveness
Achieve HR
Process
Excellence
Develop Strategic &
Functional HR Competencies
Build Strategic
Employee
Competencies
Drive
Organizational
Performance
Enhance Technology
for HR
Create Climate for
HR Action
HR Strategy Map Template
Financial
Customer
HR Internal Process
Learning & Growth
Create Positive Work
Environment
Provide Quality
HR Service
Provide High
Performance People
42
Optimize IT Efficiency
Drive Long term
Shareholder Value
Enhance IT Impact on
Enterprise Outcome
Maintain a
Reliable IT
Infrastructure
Develop Strategic &
Functional IT Competencies
Develop Effective
Decision
Support System
Propose and Deliver
Transformational
Applications
Enhance IT Tools that
Enhance the IT Function
Promote Customer-
focused Culture
IT Strategy Map Template
Financial
Customer
IT Internal Process
Learning & Growth
Deliver Consistent, High
Quality IT Service
Provide Business Units with
Innovative IT Solutions
43
Optimize Financial Efficiency
Drive Long term
Shareholder Value
Enhance Finance Effectiveness on
Enterprise Outcome
Achieve Finance
Process
Excellence
Develop Strategic &
Functional Finance
Competencies
Develop Financial
Information to
Improve Decision
Making
Ensure Compliance
with Regulatory
Requirements
Use Technology to Improve
Financial Information
Delivery
Finance Strategy Map Template
Financial
Customer
Finance Internal Process
Learning & Growth
Deliver Responsive & Efficient
Finance Operations
Provide Clear & Reliable
Required Disclosure
Promote Customer-
focused Culture
44
Optimize Marketing Efficiency
Drive Long term
Shareholder Value
Increase Sales
Revenue
Develop Innovative
Marketing
Communication
Program
Develop Strategic &
Functional Marketing
Competencies
Develop
Marketing Business
Intelligence
Accelerate
New Product
Development
Ideas
Enhance Technology
for Marketing
Foster Creative Thinking
& Innovative Solutions
Marketing Strategy Map Template
Financial
Customer
Internal Process
Learning & Growth
Create Satisfied and
Loyal Customers
Enhance Brand
Image
Develop Effective
Customer Relation
Management
45
Recommended Further Readings:
1. Robert Kaplan and David Norton, Strategy Map : Converting Intangible
Assets into Tangible Outcomes, HBS Press
2. Robert Kaplan and David Norton, Alignment : Using the Balanced
Scorecard to Create Corporate Synergies, HBS Press
46
End of Material

Weitere ähnliche Inhalte

Was ist angesagt?

Balanced Scorecard, A Comprehensive Guide
Balanced Scorecard, A Comprehensive Guide Balanced Scorecard, A Comprehensive Guide
Balanced Scorecard, A Comprehensive Guide Upendra K
 
Performance Management Cycle
Performance Management CyclePerformance Management Cycle
Performance Management CycleHrhelp board
 
Balanced Score Card ppt
Balanced Score Card ppt Balanced Score Card ppt
Balanced Score Card ppt sspatel232
 
HR SCORECARD Human Resource Scorecard PPT Slides
HR SCORECARD Human Resource Scorecard PPT SlidesHR SCORECARD Human Resource Scorecard PPT Slides
HR SCORECARD Human Resource Scorecard PPT SlidesYodhia Antariksa
 
Performance management trends
Performance management trendsPerformance management trends
Performance management trendsLokesh Gaur
 
Change management strategy ppt
Change management strategy pptChange management strategy ppt
Change management strategy pptsonips
 
KEY PERFORMANCE INDICATOR
KEY PERFORMANCE INDICATORKEY PERFORMANCE INDICATOR
KEY PERFORMANCE INDICATORspeedcars
 
Balanced scorecard-ppt
Balanced scorecard-pptBalanced scorecard-ppt
Balanced scorecard-pptPhuong Dx
 
Key Performance Indicators
Key Performance Indicators Key Performance Indicators
Key Performance Indicators shady mohammed
 
Strategic Human Resource Management (SHRM) - MBA 423 Human Resources Manageme...
Strategic Human Resource Management (SHRM) - MBA 423 Human Resources Manageme...Strategic Human Resource Management (SHRM) - MBA 423 Human Resources Manageme...
Strategic Human Resource Management (SHRM) - MBA 423 Human Resources Manageme...Stuart Gow
 
STRATEGIC HUMAN RESOURCE MANAGEMENT NOTES
STRATEGIC HUMAN RESOURCE MANAGEMENT NOTESSTRATEGIC HUMAN RESOURCE MANAGEMENT NOTES
STRATEGIC HUMAN RESOURCE MANAGEMENT NOTESBilal's Academy
 
Performance Management Powerpoint Presentation Slides
Performance Management Powerpoint Presentation SlidesPerformance Management Powerpoint Presentation Slides
Performance Management Powerpoint Presentation SlidesSlideTeam
 
Overview of Key Performance Indicators
Overview of Key Performance IndicatorsOverview of Key Performance Indicators
Overview of Key Performance IndicatorsMicheal Axelsen
 
Principles of Balanced Scorecard
Principles of Balanced ScorecardPrinciples of Balanced Scorecard
Principles of Balanced ScorecardErfan Moradian
 
Performance Management
Performance ManagementPerformance Management
Performance ManagementSheetal Wagh
 

Was ist angesagt? (20)

Performance Management
Performance ManagementPerformance Management
Performance Management
 
Balanced Scorecard, A Comprehensive Guide
Balanced Scorecard, A Comprehensive Guide Balanced Scorecard, A Comprehensive Guide
Balanced Scorecard, A Comprehensive Guide
 
Performance Management Cycle
Performance Management CyclePerformance Management Cycle
Performance Management Cycle
 
Balanced Score Card ppt
Balanced Score Card ppt Balanced Score Card ppt
Balanced Score Card ppt
 
HR SCORECARD Human Resource Scorecard PPT Slides
HR SCORECARD Human Resource Scorecard PPT SlidesHR SCORECARD Human Resource Scorecard PPT Slides
HR SCORECARD Human Resource Scorecard PPT Slides
 
Balanced Scorecard
Balanced Scorecard  Balanced Scorecard
Balanced Scorecard
 
Balance scorecard
Balance scorecardBalance scorecard
Balance scorecard
 
Performance management trends
Performance management trendsPerformance management trends
Performance management trends
 
Change management strategy ppt
Change management strategy pptChange management strategy ppt
Change management strategy ppt
 
KEY PERFORMANCE INDICATOR
KEY PERFORMANCE INDICATORKEY PERFORMANCE INDICATOR
KEY PERFORMANCE INDICATOR
 
Strategic business unit
Strategic  business  unitStrategic  business  unit
Strategic business unit
 
Balanced scorecard-ppt
Balanced scorecard-pptBalanced scorecard-ppt
Balanced scorecard-ppt
 
Key Performance Indicators
Key Performance Indicators Key Performance Indicators
Key Performance Indicators
 
Strategic Human Resource Management (SHRM) - MBA 423 Human Resources Manageme...
Strategic Human Resource Management (SHRM) - MBA 423 Human Resources Manageme...Strategic Human Resource Management (SHRM) - MBA 423 Human Resources Manageme...
Strategic Human Resource Management (SHRM) - MBA 423 Human Resources Manageme...
 
STRATEGIC HUMAN RESOURCE MANAGEMENT NOTES
STRATEGIC HUMAN RESOURCE MANAGEMENT NOTESSTRATEGIC HUMAN RESOURCE MANAGEMENT NOTES
STRATEGIC HUMAN RESOURCE MANAGEMENT NOTES
 
Performance Management Powerpoint Presentation Slides
Performance Management Powerpoint Presentation SlidesPerformance Management Powerpoint Presentation Slides
Performance Management Powerpoint Presentation Slides
 
Balanced Scorecard Performance Management
Balanced Scorecard Performance ManagementBalanced Scorecard Performance Management
Balanced Scorecard Performance Management
 
Overview of Key Performance Indicators
Overview of Key Performance IndicatorsOverview of Key Performance Indicators
Overview of Key Performance Indicators
 
Principles of Balanced Scorecard
Principles of Balanced ScorecardPrinciples of Balanced Scorecard
Principles of Balanced Scorecard
 
Performance Management
Performance ManagementPerformance Management
Performance Management
 

Andere mochten auch

Change Management PPT Slides
Change Management PPT SlidesChange Management PPT Slides
Change Management PPT SlidesYodhia Antariksa
 
Creative thinking skills for hr managers PPT Slides
Creative thinking skills for hr managers PPT SlidesCreative thinking skills for hr managers PPT Slides
Creative thinking skills for hr managers PPT SlidesYodhia Antariksa
 
Measuring roi of training ppt slides
Measuring roi of training ppt slidesMeasuring roi of training ppt slides
Measuring roi of training ppt slidesYodhia Antariksa
 
Competency based hr management PPT Slides
Competency based hr management PPT SlidesCompetency based hr management PPT Slides
Competency based hr management PPT SlidesYodhia Antariksa
 
Communication skills ppt slides
Communication skills ppt slidesCommunication skills ppt slides
Communication skills ppt slidesYodhia Antariksa
 
Principles of hr management ppt slides
Principles of hr management ppt slidesPrinciples of hr management ppt slides
Principles of hr management ppt slidesYodhia Antariksa
 
Career management PPT Slides
Career management PPT SlidesCareer management PPT Slides
Career management PPT SlidesYodhia Antariksa
 
The HR scorecard
The HR scorecardThe HR scorecard
The HR scorecardJon Ingham
 
Change Management Models- a comparison
Change Management Models- a comparisonChange Management Models- a comparison
Change Management Models- a comparisonPeopleWiz Consulting
 
Balanced Scorecard Templates
Balanced Scorecard TemplatesBalanced Scorecard Templates
Balanced Scorecard TemplatesAleksey Savkin
 
Managed Services Balanced Scorecard Presentation By Sourcing Gurus
Managed Services Balanced Scorecard Presentation By Sourcing GurusManaged Services Balanced Scorecard Presentation By Sourcing Gurus
Managed Services Balanced Scorecard Presentation By Sourcing GurusSystems Plus Solutions
 
Data quality and data profiling
Data quality and data profilingData quality and data profiling
Data quality and data profilingShailja Khurana
 
Really Simple Balanced Scorecard
Really Simple Balanced ScorecardReally Simple Balanced Scorecard
Really Simple Balanced ScorecardSamuli Pahkala
 
Executive Information System
Executive Information SystemExecutive Information System
Executive Information SystemTheju Paul
 
Why Your Competition Is Acquiring and Retaining Top Talent
Why Your Competition Is Acquiring and Retaining Top TalentWhy Your Competition Is Acquiring and Retaining Top Talent
Why Your Competition Is Acquiring and Retaining Top TalentVisier
 

Andere mochten auch (19)

Good to great PPT Slides
Good to great PPT SlidesGood to great PPT Slides
Good to great PPT Slides
 
Change Management PPT Slides
Change Management PPT SlidesChange Management PPT Slides
Change Management PPT Slides
 
Creative thinking skills for hr managers PPT Slides
Creative thinking skills for hr managers PPT SlidesCreative thinking skills for hr managers PPT Slides
Creative thinking skills for hr managers PPT Slides
 
Measuring roi of training ppt slides
Measuring roi of training ppt slidesMeasuring roi of training ppt slides
Measuring roi of training ppt slides
 
Competency based hr management PPT Slides
Competency based hr management PPT SlidesCompetency based hr management PPT Slides
Competency based hr management PPT Slides
 
Communication skills ppt slides
Communication skills ppt slidesCommunication skills ppt slides
Communication skills ppt slides
 
Principles of hr management ppt slides
Principles of hr management ppt slidesPrinciples of hr management ppt slides
Principles of hr management ppt slides
 
Career management PPT Slides
Career management PPT SlidesCareer management PPT Slides
Career management PPT Slides
 
The HR scorecard
The HR scorecardThe HR scorecard
The HR scorecard
 
HR Scorecard
HR ScorecardHR Scorecard
HR Scorecard
 
Change Management Models- a comparison
Change Management Models- a comparisonChange Management Models- a comparison
Change Management Models- a comparison
 
Balanced Scorecard Templates
Balanced Scorecard TemplatesBalanced Scorecard Templates
Balanced Scorecard Templates
 
Big Data Profiling
Big Data Profiling Big Data Profiling
Big Data Profiling
 
Managed Services Balanced Scorecard Presentation By Sourcing Gurus
Managed Services Balanced Scorecard Presentation By Sourcing GurusManaged Services Balanced Scorecard Presentation By Sourcing Gurus
Managed Services Balanced Scorecard Presentation By Sourcing Gurus
 
Data quality and data profiling
Data quality and data profilingData quality and data profiling
Data quality and data profiling
 
Safety Score Card
Safety Score CardSafety Score Card
Safety Score Card
 
Really Simple Balanced Scorecard
Really Simple Balanced ScorecardReally Simple Balanced Scorecard
Really Simple Balanced Scorecard
 
Executive Information System
Executive Information SystemExecutive Information System
Executive Information System
 
Why Your Competition Is Acquiring and Retaining Top Talent
Why Your Competition Is Acquiring and Retaining Top TalentWhy Your Competition Is Acquiring and Retaining Top Talent
Why Your Competition Is Acquiring and Retaining Top Talent
 

Ähnlich wie Balanced scorecard ppt slides

Balanced Scorecard
Balanced ScorecardBalanced Scorecard
Balanced Scorecardabhi16march
 
Balanced scorecard
Balanced scorecardBalanced scorecard
Balanced scorecardZaini Ithnin
 
Unique file 11
Unique file 11Unique file 11
Unique file 11test prod1
 
13 Measuring Sc Performance
13 Measuring Sc Performance13 Measuring Sc Performance
13 Measuring Sc Performancepirama2000
 
THE TIME SAVING BENEFITS OF USING BALANCED SCORE CARD AT THE WORKPLACE
THE TIME SAVING BENEFITS OF USING BALANCED SCORE CARD  AT THE WORKPLACE THE TIME SAVING BENEFITS OF USING BALANCED SCORE CARD  AT THE WORKPLACE
THE TIME SAVING BENEFITS OF USING BALANCED SCORE CARD AT THE WORKPLACE Abraham Ncunge
 
Performance Management - 3.Struttura delle Mappe Strategiche
Performance Management - 3.Struttura delle Mappe StrategichePerformance Management - 3.Struttura delle Mappe Strategiche
Performance Management - 3.Struttura delle Mappe StrategicheManager.it
 
Balanced score card pantaloon retail limited
Balanced score card pantaloon retail limitedBalanced score card pantaloon retail limited
Balanced score card pantaloon retail limitedGAURAV SHARMA
 
The Balance Scorecard
The Balance ScorecardThe Balance Scorecard
The Balance ScorecardPreet Gill
 
Strategy Map Templates - Version 3
Strategy Map Templates - Version 3Strategy Map Templates - Version 3
Strategy Map Templates - Version 3Clive Keyte
 
Competing On Resources Balance Scorecard
Competing On Resources  Balance ScorecardCompeting On Resources  Balance Scorecard
Competing On Resources Balance Scorecardvinod63
 
ACCA CFO Forum Final Presentation
ACCA CFO Forum Final PresentationACCA CFO Forum Final Presentation
ACCA CFO Forum Final PresentationMutenga Tagarira
 
Performance Management - 4.Identificazione dei Key Performance Indicator (KPI)
Performance Management - 4.Identificazione dei Key Performance Indicator (KPI)Performance Management - 4.Identificazione dei Key Performance Indicator (KPI)
Performance Management - 4.Identificazione dei Key Performance Indicator (KPI)Manager.it
 
Integrated Performance Management
Integrated Performance ManagementIntegrated Performance Management
Integrated Performance ManagementGlen Alleman
 
COST ACCOUNTING - Introduction to Cost Accounting
COST ACCOUNTING - Introduction to Cost AccountingCOST ACCOUNTING - Introduction to Cost Accounting
COST ACCOUNTING - Introduction to Cost AccountingMarcJohnIlano1
 

Ähnlich wie Balanced scorecard ppt slides (20)

T2 presentations - balanced scorecard
T2 presentations - balanced scorecard T2 presentations - balanced scorecard
T2 presentations - balanced scorecard
 
Balanced scorecard
Balanced scorecardBalanced scorecard
Balanced scorecard
 
Balanced Scorecard
Balanced ScorecardBalanced Scorecard
Balanced Scorecard
 
Balanced scorecard
Balanced scorecardBalanced scorecard
Balanced scorecard
 
Unique file 11
Unique file 11Unique file 11
Unique file 11
 
13 Measuring Sc Performance
13 Measuring Sc Performance13 Measuring Sc Performance
13 Measuring Sc Performance
 
THE TIME SAVING BENEFITS OF USING BALANCED SCORE CARD AT THE WORKPLACE
THE TIME SAVING BENEFITS OF USING BALANCED SCORE CARD  AT THE WORKPLACE THE TIME SAVING BENEFITS OF USING BALANCED SCORE CARD  AT THE WORKPLACE
THE TIME SAVING BENEFITS OF USING BALANCED SCORE CARD AT THE WORKPLACE
 
Performance Management - 3.Struttura delle Mappe Strategiche
Performance Management - 3.Struttura delle Mappe StrategichePerformance Management - 3.Struttura delle Mappe Strategiche
Performance Management - 3.Struttura delle Mappe Strategiche
 
Balanced score card pantaloon retail limited
Balanced score card pantaloon retail limitedBalanced score card pantaloon retail limited
Balanced score card pantaloon retail limited
 
The Balance Scorecard
The Balance ScorecardThe Balance Scorecard
The Balance Scorecard
 
The balanced scorecard
The balanced scorecardThe balanced scorecard
The balanced scorecard
 
Strategy Map Templates - Version 3
Strategy Map Templates - Version 3Strategy Map Templates - Version 3
Strategy Map Templates - Version 3
 
Competing On Resources Balance Scorecard
Competing On Resources  Balance ScorecardCompeting On Resources  Balance Scorecard
Competing On Resources Balance Scorecard
 
Balanced scorecard
Balanced scorecardBalanced scorecard
Balanced scorecard
 
ACCA CFO Forum Final Presentation
ACCA CFO Forum Final PresentationACCA CFO Forum Final Presentation
ACCA CFO Forum Final Presentation
 
Balance Score Card
Balance Score CardBalance Score Card
Balance Score Card
 
Performance Management - 4.Identificazione dei Key Performance Indicator (KPI)
Performance Management - 4.Identificazione dei Key Performance Indicator (KPI)Performance Management - 4.Identificazione dei Key Performance Indicator (KPI)
Performance Management - 4.Identificazione dei Key Performance Indicator (KPI)
 
CQE Preparation | The Quality Management System
CQE Preparation | The Quality Management SystemCQE Preparation | The Quality Management System
CQE Preparation | The Quality Management System
 
Integrated Performance Management
Integrated Performance ManagementIntegrated Performance Management
Integrated Performance Management
 
COST ACCOUNTING - Introduction to Cost Accounting
COST ACCOUNTING - Introduction to Cost AccountingCOST ACCOUNTING - Introduction to Cost Accounting
COST ACCOUNTING - Introduction to Cost Accounting
 

Mehr von Yodhia Antariksa

Mehr von Yodhia Antariksa (20)

People Analytics.pptx
People Analytics.pptxPeople Analytics.pptx
People Analytics.pptx
 
How to Attract and Retain Top Talents.pptx
How to Attract and Retain Top Talents.pptxHow to Attract and Retain Top Talents.pptx
How to Attract and Retain Top Talents.pptx
 
Developing a World Class HR Strategy.pptx
Developing a World Class HR Strategy.pptxDeveloping a World Class HR Strategy.pptx
Developing a World Class HR Strategy.pptx
 
Digital HR.pptx
Digital HR.pptxDigital HR.pptx
Digital HR.pptx
 
Recruitment Strategy.pptx
Recruitment Strategy.pptxRecruitment Strategy.pptx
Recruitment Strategy.pptx
 
Business model generation ppt
Business model generation pptBusiness model generation ppt
Business model generation ppt
 
Ted talks ppt
Ted talks pptTed talks ppt
Ted talks ppt
 
Start with why ppt
Start with why pptStart with why ppt
Start with why ppt
 
Now discover your strengths ppt
Now discover your strengths pptNow discover your strengths ppt
Now discover your strengths ppt
 
Measure whats matters ppt
Measure whats matters pptMeasure whats matters ppt
Measure whats matters ppt
 
Grit ppt
Grit pptGrit ppt
Grit ppt
 
Atomic habits ppt
Atomic habits pptAtomic habits ppt
Atomic habits ppt
 
4 disciplines of execution ppt
4 disciplines of execution ppt4 disciplines of execution ppt
4 disciplines of execution ppt
 
Marketing strategy
Marketing strategyMarketing strategy
Marketing strategy
 
Strategic planning for managers
Strategic planning for managersStrategic planning for managers
Strategic planning for managers
 
New product development
New product developmentNew product development
New product development
 
Marketing strategy
Marketing strategyMarketing strategy
Marketing strategy
 
Marketing plan
Marketing planMarketing plan
Marketing plan
 
Marketing communication strategy
Marketing communication strategyMarketing communication strategy
Marketing communication strategy
 
Managing brand equity
Managing brand equityManaging brand equity
Managing brand equity
 

Kürzlich hochgeladen

BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfAnhNguyen97152
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Reportamberjiles31
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsyasinnathani
 
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...ISONIKELtd
 
Personal Brand Exploration Presentation Eric Bonilla
Personal Brand Exploration Presentation Eric BonillaPersonal Brand Exploration Presentation Eric Bonilla
Personal Brand Exploration Presentation Eric BonillaEricBonilla13
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsIntellect Design Arena Ltd
 
Trauma Training Service for First Responders
Trauma Training Service for First RespondersTrauma Training Service for First Responders
Trauma Training Service for First RespondersBPOQe
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Winbusinessin
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023Steve Rader
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfJohnCarloValencia4
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
Amazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the companyAmazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the companyfashionfound007
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toumarfarooquejamali32
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursKaiNexus
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..dlewis191
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfCharles Cotter, PhD
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...IMARC Group
 

Kürzlich hochgeladen (20)

BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 
WAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdfWAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdf
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Report
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story points
 
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
 
Personal Brand Exploration Presentation Eric Bonilla
Personal Brand Exploration Presentation Eric BonillaPersonal Brand Exploration Presentation Eric Bonilla
Personal Brand Exploration Presentation Eric Bonilla
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking Applications
 
Trauma Training Service for First Responders
Trauma Training Service for First RespondersTrauma Training Service for First Responders
Trauma Training Service for First Responders
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
Amazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the companyAmazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the company
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb to
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, Ours
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
 

Balanced scorecard ppt slides

  • 2. 2 You can download these excellent slides at : www.HR-Management-Slides.com
  • 3. 3 Contents : 1. Corporate Performance Scorecard 2. Strategy Map Framework 3. Four Perspectives in Balanced Scorecard 4. Identifying Key Performance Indicators 5. Strategy Map in Corporate Functions (HR, IT, Finance and Marketing)
  • 6. 6 Three critical components for effective process of performance management Performance Management Infrastructure Performance Management Culture Performance Management Process Performance management cycle is continuous and consistent Culture that is based on performance accountability Logistic support and performance management administration Performance Management Component
  • 7. 7 STRATEGY Plan and Execute Monitor and Evaluate Reward and Coach Set Measures and Target Performance Management Cycle
  • 8. 8 Managing Performance with Balanced Scorecard Balanced Scorecard is a management tool that provides stakeholders with a comprehensive measure of how the organization is progressing towards the achievement of its strategic goals.
  • 9. 9 • Balances financial and non-financial measures • Balances short and long-term measures • Balances performance drivers (leading indicators) with outcome measures (lagging indicators) • Leads to strategic focus and organizational alignment. Managing Performance with Balanced Scorecard
  • 10. 10 4 Perspectives in Balanced Scorecard If we succeed, how will we look to our shareholders? Financial Perspective To achieve our vision, how must we look to our customers? Customer Perspective To satisfy our customers, which processes must we excel at? Internal Perspective To achieve our vision, how must our organization learn and improve? Learning & Growth Perspective The Strategy
  • 11. 11 Strategy and Balanced Scorecard Mission – Why We Exist Vision – What We Want to Be Values – What’s Important to Us Strategy : Our Game Plan Strategy Map : Translate the Strategy Balanced Scorecard : Measure and Focus Strategic Outcomes Satisfied Shareholders Delighted Customers Excellent Processes Motivated Workforce
  • 12. 12 • The strategy map framework is presented in the following slides. • This framework describes the types of strategic target that should be presented in each perspective, namely the financial perspective, customers, internal business process, and learning & growth perspective. Strategy Map Framework
  • 13. 13 Cost Efficiency Long-term Shareholder Value Revenue Growth Price Availability BrandServiceQuality Operations Management Processes Human Capital Customer Management Processes Innovation Processes Regulatory and Social Processes Organization Capital Information Capital Strategy Map Framework Financial Customer Internal Process Learning & Growth
  • 14. 14 Financial Perspective • In private companies, the financial perspective is the main objective (ultimate goal) – without having to sacrifice the interests of other relevant stakeholders (community, environment, government, etc.) • In the financial perspective, the strategic goal is the long-term shareholder value. This goal is driven by two factors, namely : revenue growth and cost efficiency.
  • 15. 15 Long-term Shareholder Value Revenue Growth Improve Cost Structure Increase Asset Utilization Cost Efficiency Strategic Objectives in Financial Expand Revenue Opportunities Enhance Customer Value
  • 16. 16 Customer Perspective • This perspective is very instrumental, because without customers, how can a company survive? • Customer perspective covers the following elements: • Customer acquisition • Customer retention • Customer profitability • Market share • Customer satisfaction
  • 17. 17 Price Availability BrandServiceQuality Customer Acquisition Customer Satisfaction Customer Retention Customer Profitability Market Share Strategic Objectives in Customer
  • 18. 18 Internal Process Perspective • This perspective reflects the processes in key business that should be optimized in order to meet the needs of the customers. • There are four main themes in this perspective, namely: • Operations Management Process • Customer Management Process • Innovation Process • Regulatory and Social Process
  • 19. 19 Operations Management Processes Customer Management Processes Innovation Processes Regulatory and Social Processes Processes that produce and deliver products and services Processes that enhance customer value Processes that create new products and services Processes that improve communities and the environment • Supply • Production • Distribution • Selection • Acquisition • Retention • Growth • New Ideas • R&D Portfolio • Design/ Develop • Launch • Environment • Safety & Health • Employment • Community Strategic Objectives in Internal Process
  • 20. 20 Learning & Growth Perspective • This perspective reflects the capability that a company should have, namely: • Human Capital • Organization Capital • Information Capital • This perspective shows us that good human resource development system, organizational system and information system forms a solid foundation for improving company performance.
  • 21. 21 Human Capital Organization Capital Information Capital • Skills • Knowledge • Attitude • Systems • Database • Networks • Culture • Leadership • Organization Development Strategic Objectives in Learning & Growth
  • 22. 22 Strategy Map Template • The following slide displays the strategy map template comprising of four perspectives : financial, customer, internal business process, and learning & growth.
  • 23. 23 Improve Cost Efficiency Enhance Long-term Shareholder Value Increase Revenue Growth Enhance Brand Image Build High Performance Products Achieve Operational Excellence Develop Strategic Competencies Drive Demand through Customer Relation Management Manage Dramatic Growth through Innovation Implement Good Environmental Policy Build Learning Culture Expand Capabilities with Technology Strategy Map Template Financial Customer Internal Process Learning & Growth Expand Market Share
  • 25. 25 Vision Mission and Values Strategy Finance Customer Internal Business Process HR Development Key Performance Indicators Key Performance Indicators Key Performance Indicators Strategic Objectives KPI = Measurement or indicator that provides information on how far we have succeeded in achieving the strategic objectives Key Performance Indicators (KPI)
  • 26. 26 • The measure of success must show clear, specific and measurable performance indicators. • The measure of success should be declared explicitly and in detail so that it is clear what is being measured. • Costs to identify and monitor the measure of success should not exceed the value that will be known from the measurement. Guidelines in Formulating the KPI KPI Guidelines
  • 27. 27 Relevant to the Strategic Objective Does KPI have a linkage with the strategic objectives? Controllable Are the KPI achievements still under control? Actionable Can any action be taken to improve the performance? Simple Is the KPI easy to explain? Credible Is the KPI not easy to manipulate? KPI Guidelines
  • 28. 28 KPI Family Dimension Productivity Measures employee output (units/ transactions/ dollars), the uptime levels and how employees use their time (sales-to- assets ratio, dollar revenue from new customers, sales pipeline). Measures the ability to meet and/or exceed the requirements and expectations of the customer (customer complaints, percent returns, DPMO -- defects per million opportunities). Quality
  • 29. 29 KPI Family Dimension Profitability Measures the overall effectiveness of the management organization in generating profits (profit contribution by segment/customer, margin spreads). Measures the point in time (day/week/ month) when management and employee tasks are completed (on-time delivery, percent of late orders). Timeliness
  • 30. 30 KPI Family Dimension Process Efficiency Measures how effectively the management organization incorporates quality control, Six Sigma and best practices to streamline operational processes (yield percentage, process uptime, capacity utilization). Measures how effectively the management organization leverages existing business resources such as assets, bricks and mortar, investments (sales per total assets, sales per channel, win rate). Resource Utilization
  • 31. 31 KPI Family Dimension Cost Savings Measures how successfully the management organization achieves economies of scale and scope of work with its people, staff and practices to control operational and overhead costs (cost per unit, inventory turns, cost of goods). Measures the ability of the management organization to maintain competitive economic position in the growth of the economy and industry (market share, customer acquisition/retention, account penetration). Growth
  • 32. 32 KPI Category Dimension DirectThe actual raw data value as measured (e.g., sales volume). Percent The comparison of the changes in performance of one value relative to the same value at a different time, geography, etc. (e.g., percentage change in sales vs. last year).
  • 33. 33 KPI Category Dimension Simple Ratio The comparison of one value relative to another to provide a benchmark for comparison of performance (e.g., average sales per day). Index A combination of several separate measures added together that result in an overall indicator of performance (e.g., (company sales growth)/(industry sales growth) for a specific geography).
  • 34. 34 KPI Category Dimension Composite Average The addition of the weighted averages of several similar measures that result in an overall composite indicator of performance (e.g., customer satisfaction composite is mixture of results from surveys, focus groups and product returns). Statistics Multiple measures such as mean, variance, standard deviation and variance that capture the spread and distribution of the performance measures (e.g., sales distribution by demographics, geography, channel).
  • 35. 35 Strategy Map for Corporate Functions (HR, IT, Finance and Marketing)
  • 36. 36 Vision Mission Strategy Integration between Corporate and Division/Department Corporate Scorecard Division Scorecard The Division Scorecard is built by referring to the corporate scorecard
  • 37. 37 Financial Customer Internal Process Learning & Growth Corporate Finance Corporate Marketing Production Supply Chain R & D Corporate HR Info Technology Corporate and Division Scorecard
  • 38. 38 Corporate and Division Scorecard • Division Scorecard is formulated by looking at the four perspectives in Corporate Scorecard. • As shown in the previous slides, the learning & growth perspective provides guidelines for developing scorecard at the Human Resource and IT divisions, while the internal process perspective provides guidelines for developing scorecard at the supply chain division or R&D.
  • 39. 39 Corporate and Division Scorecard Sample from GE Lighting Business Group Level of Organization Financial Customer Internal Process Learning & Growth Corporate Scorecard Increase profit margin Improve customer Increase inventory turns Increase level of satisfaction level Improve internal process employee competency Division Scorecard Optimize cost of production Improve customer Increase inventory turns Increase level of Reduce inventory levels satisfaction level Improve internal process employee competency Plant Scorecard Optimize cost of production Increase percent of Increase inventory turns Number of "on the Increase yields ratio on time delivery Reduce number of defects job training" delivered Increase labor productivity Reduce customer per million Number of performance Reduce inventory levels complaints per million Improve quality incoming coaching session materials Maintain optimum equipment speed Frontline Employee Reduce waste Reduce equipment downtime Number of "on the Scorecard Reduce overtime Reduce number of poor job training" attended Increase production rates solders Number of performance Reduce number of cracked coaching session bulbs attended The above example shows how the scorecard at corporate level is cascaded to division level, and further to plant level and employee level.
  • 40. 40 Division Strategy Map Template • The strategy map for HR Division, Information Technology Division, Finance Division, and Marketing Division are presented in the following slides.
  • 41. 41 Optimize HR Efficiency Drive Long term Shareholder Value Enhance People & Organizational Effectiveness Achieve HR Process Excellence Develop Strategic & Functional HR Competencies Build Strategic Employee Competencies Drive Organizational Performance Enhance Technology for HR Create Climate for HR Action HR Strategy Map Template Financial Customer HR Internal Process Learning & Growth Create Positive Work Environment Provide Quality HR Service Provide High Performance People
  • 42. 42 Optimize IT Efficiency Drive Long term Shareholder Value Enhance IT Impact on Enterprise Outcome Maintain a Reliable IT Infrastructure Develop Strategic & Functional IT Competencies Develop Effective Decision Support System Propose and Deliver Transformational Applications Enhance IT Tools that Enhance the IT Function Promote Customer- focused Culture IT Strategy Map Template Financial Customer IT Internal Process Learning & Growth Deliver Consistent, High Quality IT Service Provide Business Units with Innovative IT Solutions
  • 43. 43 Optimize Financial Efficiency Drive Long term Shareholder Value Enhance Finance Effectiveness on Enterprise Outcome Achieve Finance Process Excellence Develop Strategic & Functional Finance Competencies Develop Financial Information to Improve Decision Making Ensure Compliance with Regulatory Requirements Use Technology to Improve Financial Information Delivery Finance Strategy Map Template Financial Customer Finance Internal Process Learning & Growth Deliver Responsive & Efficient Finance Operations Provide Clear & Reliable Required Disclosure Promote Customer- focused Culture
  • 44. 44 Optimize Marketing Efficiency Drive Long term Shareholder Value Increase Sales Revenue Develop Innovative Marketing Communication Program Develop Strategic & Functional Marketing Competencies Develop Marketing Business Intelligence Accelerate New Product Development Ideas Enhance Technology for Marketing Foster Creative Thinking & Innovative Solutions Marketing Strategy Map Template Financial Customer Internal Process Learning & Growth Create Satisfied and Loyal Customers Enhance Brand Image Develop Effective Customer Relation Management
  • 45. 45 Recommended Further Readings: 1. Robert Kaplan and David Norton, Strategy Map : Converting Intangible Assets into Tangible Outcomes, HBS Press 2. Robert Kaplan and David Norton, Alignment : Using the Balanced Scorecard to Create Corporate Synergies, HBS Press