balance scorecard
TRANSCRIPT
![Page 1: Balance Scorecard](https://reader035.vdocuments.us/reader035/viewer/2022070523/58ecb7871a28ab0b128b461b/html5/thumbnails/1.jpg)
BALANCE SCORECARDPRESENTED BY, DEBJIT DAS,
SUBHAM KARMAKAR
![Page 2: Balance Scorecard](https://reader035.vdocuments.us/reader035/viewer/2022070523/58ecb7871a28ab0b128b461b/html5/thumbnails/2.jpg)
DEFINITION
• The balance scorecard is a strategic planning and management system that is used extensively in business and industry, government and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications and monitor organization performance against strategic goals.
![Page 3: Balance Scorecard](https://reader035.vdocuments.us/reader035/viewer/2022070523/58ecb7871a28ab0b128b461b/html5/thumbnails/3.jpg)
ABOUT BALANCE SCORECARD
Balance Scorecard is an example of a closed loop controller or cybernetic control applied to the management of the implementation of a strategy.
Balance Scorecard emerged as a performance management system, over a period of time it has come to be known as a strategy management system.
![Page 4: Balance Scorecard](https://reader035.vdocuments.us/reader035/viewer/2022070523/58ecb7871a28ab0b128b461b/html5/thumbnails/4.jpg)
CHARACTERISTICS
The critical characteristics thet define a balanced scorecard are:• Its focus on the strategic agenda of the organization
concerned.• The selection of a small number of data items to monitor.• A mix of financial and non-fuinancial data items.
![Page 5: Balance Scorecard](https://reader035.vdocuments.us/reader035/viewer/2022070523/58ecb7871a28ab0b128b461b/html5/thumbnails/5.jpg)
DIAGRAM OF BALANCE SCORECARD
![Page 6: Balance Scorecard](https://reader035.vdocuments.us/reader035/viewer/2022070523/58ecb7871a28ab0b128b461b/html5/thumbnails/6.jpg)
THE ELEMENTS OF BALANCE SCORECARD
Three elements of balance scorecard, namely, • Measurement System,• Strategic Management,• Communication Tools
![Page 7: Balance Scorecard](https://reader035.vdocuments.us/reader035/viewer/2022070523/58ecb7871a28ab0b128b461b/html5/thumbnails/7.jpg)
MEASUREMENT SYSTEM
Balance Scorecard is also used as Measurement system of a organization.
![Page 8: Balance Scorecard](https://reader035.vdocuments.us/reader035/viewer/2022070523/58ecb7871a28ab0b128b461b/html5/thumbnails/8.jpg)
MEASUREMENT SYSTEM
The balance scorecard enables an organization to translate its mission / strategies into objectives and measured organized into four perspective/dimensions:
1. Financial Perspective, 2. Customers Perspective, 3. Internal business process, 4.Learning and growth.
![Page 9: Balance Scorecard](https://reader035.vdocuments.us/reader035/viewer/2022070523/58ecb7871a28ab0b128b461b/html5/thumbnails/9.jpg)
FINANCIAL PERSPECTIVE
• Financial measures are retained in the balanced scorecard framework as a valuable tool.• It is use for summarising the readily measureable
economic consequences.
![Page 10: Balance Scorecard](https://reader035.vdocuments.us/reader035/viewer/2022070523/58ecb7871a28ab0b128b461b/html5/thumbnails/10.jpg)
FINANCIAL PERSPECTIVE (CONTINUED...)
• They are typically related to profit. • Balance Scorecard measures in the financial perspective included : 1. Income measures the terms of operating income, gross margin. 2. Revenue and cost measures namely revenue growth from new
product. 3. Income and investment measures in terms of return on
investment.
![Page 11: Balance Scorecard](https://reader035.vdocuments.us/reader035/viewer/2022070523/58ecb7871a28ab0b128b461b/html5/thumbnails/11.jpg)
CUSTOMERS PERSPECTIVE
In the customers perspective two questions are critical 1. who are target customers ? 2. What is value proposition in serving them ?
![Page 12: Balance Scorecard](https://reader035.vdocuments.us/reader035/viewer/2022070523/58ecb7871a28ab0b128b461b/html5/thumbnails/12.jpg)
INTERNAL BUSINESS PROCESS
• It identifies the key or critical processes in which the organization should excel.• They would enable the business units to: 1. Deliver the value proposition that will retain
customers in the targeted market segment. 2. Satisfy shareholders expectation of excellent
financial result.
![Page 13: Balance Scorecard](https://reader035.vdocuments.us/reader035/viewer/2022070523/58ecb7871a28ab0b128b461b/html5/thumbnails/13.jpg)
LEARNING & GROWTH PERSPECTIVE
• It identifies the capabilities the organization must excel so as to achieve superior internal processes that, in turn,create value for customers and shareholders.• The measures in this perspective are really the enablers of the
other perspectives.• The 3 principal sources of organizational learning and growth
are: 1. people, 2. systems, 3. procedures.
![Page 14: Balance Scorecard](https://reader035.vdocuments.us/reader035/viewer/2022070523/58ecb7871a28ab0b128b461b/html5/thumbnails/14.jpg)
STRATEGIC MANAGEMENT
• Strategy management is a performance evaluation measure.• Balance scorecard framework acts as a critical tool in
aligning short-term actions with their strategy.• It alleviates many of the issues associated with effective
strategy implementation, namely: 1. Vision barrier, 2. People barrier, 3. Resource barrier, 4. Management barrier.
![Page 15: Balance Scorecard](https://reader035.vdocuments.us/reader035/viewer/2022070523/58ecb7871a28ab0b128b461b/html5/thumbnails/15.jpg)
COMMUNICATION TOOLS
• Sharing scorecard results throughout the organization gives the employees the opportunity to discuss the assumptions underlying the strategy.• Understanding the strategy can unlock many hidden
capacities of the organization as employees know how they can contribute in the process.
![Page 16: Balance Scorecard](https://reader035.vdocuments.us/reader035/viewer/2022070523/58ecb7871a28ab0b128b461b/html5/thumbnails/16.jpg)
MERITS OF BALANCE SCORECARD
• It helps to communicate the strategy of organization to all members.• It motivates managers to take actions that results in
improved financial performance.• It limits the number of measures to the most critical
ones.
![Page 17: Balance Scorecard](https://reader035.vdocuments.us/reader035/viewer/2022070523/58ecb7871a28ab0b128b461b/html5/thumbnails/17.jpg)
PITFALLS OF BALANCE SCORECARD
• Cost benefit considerations should be central element in designing a balance scorecard.• Managers tend to focus on what their performance is
measured by.
![Page 18: Balance Scorecard](https://reader035.vdocuments.us/reader035/viewer/2022070523/58ecb7871a28ab0b128b461b/html5/thumbnails/18.jpg)
POPULARITY
• In 1997, Kurtzman found that 64% of companies followed the strategies of Balance Scorecard. • It is also implemented by govt. agencies, military
units, business units and corporations as a whole.
![Page 19: Balance Scorecard](https://reader035.vdocuments.us/reader035/viewer/2022070523/58ecb7871a28ab0b128b461b/html5/thumbnails/19.jpg)
THANK YOUSubmitted to, Dr. Neeti Mathur
Submitted by, Debjit Das (UG/0101006/2015) Subham Karmakar (UG/0101029/2015)
![Page 20: Balance Scorecard](https://reader035.vdocuments.us/reader035/viewer/2022070523/58ecb7871a28ab0b128b461b/html5/thumbnails/20.jpg)
ADAMAS UNIVERSITY