ReallySimple

BalancedScorecard

By Samurai

Textbook examples ofBalanced Scorecard

are complex

Manager’s Toolbox example of

Balanced Scorecardis simple

1 A4 to prepare

1 slideto communicate

1 A4to execute

insert

¥€$

:-)

Learningperspective

Processperspective

Customerperspective

Financialperspective

Acquiring knowledge

Summarizing knowledge

Customer satisfaction

Profitable growth

Textbooks say“Ultimately all causal

paths lead to financial

measures.”

Ultimately all causal paths lead to financial measures

Financial perspective

Customer perspective

Process perspective

Learning perspective

That’s an uphill battle!

Financial perspective

Customer perspective

Process perspective

Learning perspective

That’s an uphill battle!

Financial perspective

Customer perspective

Process perspective

Learning perspective

Been there,done that!

They stumbled on learning

Financial perspective

Customer perspective

Process perspective

Learning perspective

With jeans, sneakers & ¥100 raincoatsIn really, really, really bad hail storm1 hour to nearest shelter

The fundamental questions

Financial perspective

Customer perspective

Process perspective

Learning perspective“To achieve our vision, how will we sustain our ability to change and improve?”

“To satisfy our shareholders and customers, what business processes must we excel at?”

“To succeed financially, how should we appear to our shareholders?”

“To achieve our vision, how should we appear to our customers?”

To achieve our vision, how will we sustain our ability to change and improve?

Manager’s Toolboxturns the perspectivesupside down

insert

¥€$

:-)

Learningperspective

Processperspective

Customerperspective

Financialperspective

How will we sustain our ability to change and improve?

What business processes must we excel at?

How should we appear to our customers?

How should we appear to our shareholders?

Ultimately all causal paths

start from learning perspective

Learning perspectiveLearning perspective

Process perspectiveProcess perspective

Customer perspectiveCustomer perspective

Financial perspectiveFinancial perspective

Ultimately all causal pathsstart from learning perspective

Coming downhill is fun!

Learning perspectiveLearning perspective

Process perspectiveProcess perspective

Customer perspectiveCustomer perspective

Financial perspectiveFinancial perspective

Customer perspective

Actually it is a child's play!My son

and my daughterready to showwhat they’ve

learned.

Learning perspectiveLearning perspective

Process perspectiveProcess perspective

Customer perspectiveCustomer perspective

Financial perspectiveFinancial perspective

And business is down there“Let’s take a break

down there!” Learning perspectiveLearning perspective

Process perspectiveProcess perspective

Customer perspectiveCustomer perspective

Financial perspectiveFinancial perspective

Textbook says Balanced Scorecard

is a management system

And that’s true!

Balanced Scorecard is a

ManagementSystem

Not just a measurement system

You do not just measure your heart beat

You use the heart rate monitor

to manage your exercise

In order to

Last longer

Feel good

Improve fitness

Control weight…

… and to improve learning

Rule #1:

Exercise boostsbrain power

Dr. John MedinaBrain Rules

Textbooks say“Strategy map helps

to communicate strategy.”

?

Does this really help to communicate

their strategy to you?

The Chip brothers call it Curse of Knowledge

Trying to tell you everything about every possible strategy, with perfect accuracy, in one page.

The Chip brothers call it Curse of Knowledge

Trying to tell you everything about every possible strategy, with perfect accuracy, in one page.

The Chip brothers call it Curse of Knowledge

Is not

made to stick

Make it simple, find the core of the idea, strip the idea down to its most critical essence.

You need to

Make it simple, find the core of the idea, strip the idea down to its most critical essence.

You need to

fiveothersticky

elements+ =

First we need to go back to the basics

Mission statement

tells you what the company is now

“We’re on a mission from God!”

“We’re on a mission from God!”

Driven by their mission

“The Catholic orphanage they grew up in needs to pay $5,000 taxes in 11 days, or else it will be closed.”

“We’re on a mission from God!”

They’ll never get caught

bythe police,

ex-girlfriend,Country Bob,

Good Old Boys,Illinois Nazis,more police,

National Guard,SWAT teams.

Driven by their mission

“The Catholic orphanage they grew up in needs to pay $5,000 taxes in 11 days, or else it will be closed.”

Vision statement

outlines what a company wants to be

“Imagine all the people living life in peace!”

If you imagine,can you hear it?

Well communicated Vision

Strategy

is a long term plan of action designed to achieve a particular goal, most often "winning"

A map is handy to communicate

(=Strategy map)

how you plan to get(=Strategy)

from where you are(=Mission)

to where you want to be(=Vision)

Now, let’s make the Strategy map

for Manager’s Toolbox

1) Take an A4 paper

2) Draw a table

3) Fill in the key words

4) Fill in the Mission

Life-long learning

5) Fill in the Vision

Improved management and leadership skills

6) Fill in the Strategy

To internalize and summarize the knowledge I need during my management career.

7) Draw the Strategy Map

Does this communicatemy strategy to you?

That was just the beginning…

Balanced Scorecard is amanagement tool

And should be used in management meetings

8) Measures are checked

Oops, the measures…

Let’s take just one example,

but a typically difficult one

Customer satisfaction

I am the only customer to

Manager’s Toolbox and I will be satisfied if

People visit my blogand leave comments

People visit my blogand leave comments

here

People visit my blogand leave comments

view my presentations and download them

or

People visit my blogand leave comments

view my presentations and download them

or

here

People visit my blogand leave comments

view my presentations and download them

or

here

Where were we?

Balanced Scorecardis used in

management meetings

8) Measures are checked

9) Achievement is checked

10) Trend is followed

And last but not least

11) Actions are agreed

8) And again in next meeting

That is Manager’s Toolbox’s

ReallySimple

BalancedScorecard

By Samurai

1 A4 to prepare

1 slide to communicate

1 A4 to execute

But you need

100% Management commitmentto build and use amanagement system

I have 100% management

supportand I’ve read these

books

This is a good textbook!

by Samurai

http://managerstoolbox.blogspot.com/

Good luck on building and usingReally Simple Balanced Scorecard!

Send me an email and I’ll send you the

step-by-step excel template

PhotosHikers at Mt Fuji & children skiing, my personal photos

Samurai sword, Pulse, Trekking, You are here –map, Tool, Meeting room & Smiley from Stock.xchng http://www.sxc.hu/

Mt Fuji, http://www.sxc.hu/photo/907490

Ski resort, http://www.flickr.com/photos/buck82/94755839/

Snow boarders, http://www.flickr.com/photos/altus/370571191/

Heart rate monitor, http://www.flickr.com/photos/publicenergy/254413431/

Brain rules, http://www.brainrules.net/mediakit

Lennon’s Imagine http://www.flickr.com/photos/jeffpearce/473580035/

Manager, http://www.sxc.hu/photo/708280

DVD & book covers, www.amazon.com

Wikipedia, www.wikipedia.org

Exercise zones, www.heartratemonitorsusa.com

Mt Fuji routes & Hakuba ski map, google images (couldn’t find anywhere else)

Complex strategy map, www.valuebasedmanagement.net