balanced score card

Subject: Quality ManagementFaculty of Business AdministrationGroup 6-KITT

CONTENT

I. Introduction 

II. Purpose and Benefit

III. Philosophy

IV. The principle of application

V. The way for Applying

VI. Applicant for BSC in Vietnam

I. INTRODUCTION

BALANCED SCORECARD

Who?

Robert S. Kaplan

David Norton

When & Where?

Starting from 1990,

now is over the world.

I. INTRODUCTION

MISSION STRATEGY

FINANCE

Objective Measure Target Initiative

INTERNAL PROCESSESLERNING AND GROWTH

CUSTOMER

Objective Measure Target Initiative

Objective Measure Target Initiative

Objective Measure Target Initiative

What?

I. INTRODUCTION

Why?“3 in 1” : • One of the measuring performance system• One of the communication tools (or communication)• One of the managing method of The Effective Strategy within the organization. How?Individual: interpret and implement The Effective Strategy in order to improving the performance and measuring the working productivity. Organization: improve treatment regimes poisoning, allocate logically human resources.

II. PURPOSE AND BENEFITS

Purpose

Building a scorecard system : Perspective, Objective,

Indicator, Target, Initiative of each person and each

department

=> carry out, measure and manage the implementation

of organizational strategy

II. PURPOSE AND BENEFITS

• Setting goals, targets appropriate with the general strategy of the organization through the scorecard system

• Construction and adjustment actions of the organization by the measurement results by Scorecard

• Expressing clearly, briefly strategy to all levels => share information, promote a spirit of co-ordinates

• Overcoming the limitations of traditional methods: long cycles, not specified the problem, allocate resources disproportionately, only the short-term results

Benefit

II. PURPOSE AND BENEFITS

Benefit• Solve four major hurdles in the strategy's implementation: vision barriers, human barriers, resource barriers and management barriers

• Accurately assess the results of each level => preferential treatment policies, additional human resources

• Creating a scientific basis for the planning and development of intangible: strategy training, development of business knowledge, Optimize Value management elements of internal processes

• “Performance should be measured by

people who create it”, not just be measured

by someone else.

• Each person is associated with one another

and with the overall strategy of the

organization according to the principle of the

“cause and effect” theory. This is the basis for

interpreting a common strategy into

objectives for each person.

III. PHILOSOPHY

III. PHILOSOPHY

IV. THE PRINCIPAL OF APPLICATION

● The effective relations with staff and with other

stakeholders (unions, distributors, major customers).

● Empower staff appropriately

● Links Scorecard system with oriented strategy of the

organization chart

● Combined Measurement Assessment, Planning and

Performance Improvements to management

IV. THE PRINCIPAL OF APPLICATION

V. THE WAY FOR

APPLYING

• Customer Values• Organization Pain• Organization Values• Vision & Mission

• Customer Values• Organization Pain• Organization Values• Vision & Mission

STEP1: ASSESSMENT

STEP1: ASSESSMENT

WHAT ?• Mission?• Vision ?• Core value ?• Goals ?

HOW ?

• SWOT analysis, Porter’s Five Forces, Competitive analysis, Interview.• Consultation of the Executive (Executive team)

STEP2: STRATEGY PLANNING

ThemesStrategic ResultsStrategies

ThemesStrategic ResultsStrategies

STEP2: STRATEGY PLANNING

WHAT ?

HOW ?

Platform strategies to implement mission and vision of the company

• 3 to 5 medium-term strategies (2-4 years)• Should be different from competitors. Ex: Effective quality training, customer service, maintain a good relationship with the Supplier,...

STEP3: OBJECTIVE

• Strategy Elements

STEP3: OBJECTIVE

WHAT ?

HOW ?

The objectives of the company to implement the proposed strategies

Each objective is reviewed base on 4 perspectives:

• Finance• Customer• Internal process• Learn & Growth

STEP3: OBJECTIVE

STEP4: STARTEGY MAP

• Performance Drivers• Enablers• Causal Links

STEP4: STARTEGY MAP

WHAT ?

HOW ?

Strategic mapping of the principle levels from top to bottom starting from the strategy of the organization

Objectives will be reviewed to find the relationship between them.Causal relationship: cause and effect link

STEP5: PERFORMANCE MEASURES

• Performance Measures• Targets• Baselines

STEP5: PERFORMANCE MEASURES

WHAT ?

HOW ?

Measures to evaluate the performance of the objective+ Lagging Indicator: outcome- to be achieved+ Leading Indicator. driver- to achieve that outcome

With numerical targetsEx: Objective: "Customer satisfaction“→ Measure1: Number of customer complaints(lagging)- 30→ Measure 2: counselor working hours with clients(Leading)-120

STEP6: INITIATIVES

• New Projects

WHAT ?

HOW ?

STEP6: INITIATIVES

- Defining initiatives to complete each objective and measure

STEP7: AUTOMATION

• Software• Performance Reporting• Knowledge Sharing

STEP7: AUTOMATION

WHAT ?

HOW ?

Everything (or most things) should be implemented in a software-based automation specialist for BSC:    +Data collection, to test reports, chart review …

Software, Performance Reporting, Knowledge sharing

CASCADE

• Alignment• Business & Support Unit Scorecards

WHAT ?

HOW ?

CASCADE

Transferring content in the BSC Organization down to every employee in the enterprise to construct: + BSC Department level--> BSC Unit Level--> BSC Personal Level

Building a BSC at each level which suit, consistent with the strategy map of that level

EVALUATION

• Performance Results• Revised Strategies

EVALUATION

WHAT ?

HOW ?

Assessing the new BSC’s omission which need to amend or even remove in order to build a BSC product most suitable for company

• Customer Values• Organization Pain• Organization Values• Vision & Mission

• Customer Values• Organization Pain• Organization Values• Vision & Mission

• Themes• Strategic Results• Strategies

• Software• Performance Reporting• Knowledge Sharing

• Alignment• Business & Support Unit Scorecards

• Performance Results• Revised Strategies

• Strategy Elements

• Performance Drivers• Enablers• Causal Links

• Performance Measures• Targets• Baselines

• New Projects

V. APPLICATION OF BSC IN VIETNAM

V. APPLICATION OF BSC IN VIETNAM

“For a more beautiful and healthier life”

Vision

Mission

“DHG Pharma always provides high quality products and services to satisfy the aspiration for a more beautiful and healthier life.”

INTRODUCTION

V. APPLICATION OF BSC IN VIETNAM

Importance milestones:

-1996: The first year that DHG Pharma’s products was elected as “Vietnam High Quality Goods”, the factories complied with the GMP standard, being the leader of Vietnam pharmaceutical industry until now.

- 2004: Equitization

- 2006: “DHG” being listed on HOSE

INTRODUCTION

V. APPLICATION OF BSC IN VIETNAM

THE APPLICATION OF BSC IN DHG PHARMA

THE APPLICATION OF BSC

Economic situation:

The financial crisis in 2008

• Input materials for pharmaceutical production, largely

due to imports

• Exchange rate fluctuation

THE APPLICATION OF BSC

The need to have a model of strategic planning and control?

THE APPLICATION OF BSC

Finance and investment

What else we can do with the current production facility?

---------------------

Personnel

How can we manage what we have now more effectively?

---------------------

Sales and marketing

How can we develop an effective marketing plan?

---------------------

Production and products

Which plans to improve the internal process?

---------------------

Sales and marketing (Customer)

+ Minimizing the maximum competitive advantage,

+ Focusing on the development of key product groups,

+ Focus on traditional customer groups.

+ Construction while enhancing the brand image in the minds of consumers through media activities, social activities with criteria to mini

+ The settlement of debts, minimize costs and optimize efficiency.

THE APPLICATION OF BSC

Finance and investment (Finance)

+ Reasonable timing for storage of raw materials,

+ The balance between exchange rates and raw material prices,

+ Review and standardize the investment projects to refer to

carrying out the project really necessary and effective.

THE APPLICATION OF BSC

+ construct standard processes to reduce wastage, reduce costs;

+ organize activities to stimulate creativity in order to increase productivity and improve product’s quality.

Personnel (Learning and Growth)

+ strengthen, mobilize additional personnel for sales line,

+ enhance training key staff and organize a series of training programs for employees.

THE APPLICATION OF BSC

Production and products (Internal Processes)

THE APPLICATION OF BSC

Results

MISSION ROSTERSTT MSSV Tên Nhiệm Vụ

1 71006087 Nguyễn Ánh Chiêu Dương Conclusion and content of part II- presenting

2 71006140 Đoàn Doãn Ngọc Trinh PowerPoint- Presenting

3 71006055 Trần Thị Quỳnh Như The Way of application (Steps)

4 71006148 Nguyễn Thị Hải Yến Introduction and conlusion

5 71006080 Nguyễn Diệp Ngọc Yến Content of part II

6 71006136 Nguyễn Thị Thuỳ Trang Purpose and Benefits

7 71006147 Huỳnh Hải Yến Principal and examples

8 Dương Kim Mai Requirements of method and examples