The Balanced Scorecard
Enterprise Excellence Series
(Sample Slides)
© 2009 Factory Strategies Group LLC. All rights reserved.
Outline
1. Introduction to the Balanced Scorecard
a. What is it?
b. Why do it?
2. Balanced Scorecard Fundamentals
a. The Four Perspectives
b. Measures, Targets and Initiatives
c. Roles and Responsibilities
3. Using the Balanced Scorecard as a Management
System
4. Issues and Challenges with the Balanced Scorecard
5. Implementing the Balanced Scorecard
© 2009 Factory Strategies Group LLC. All rights reserved.
2
Strategy vs Operational Excellence
• Strategy creates fit among a firms activities
• The success of strategy depends on doing many things
well, not just a few
• All things that are done well must operate within a
close knit system
• If there is no fit, there is no strategy
• Without fit management becomes the search for
operational excellence
• Improving operational excellence is necessary but it is
not the same as strategy
• Managing fit is “strategic management”
© 2009 Factory Strategies Group LLC. All rights reserved.
3
The Increasing Sophistication of Corporate
Performance Measurement
Value-linked measurements for
business strategy, stakeholder
needs, process attributes and the
business environment
Sophistication
of
Measurement
Systems
Balanced scorecard
Economic value added
Quality-related operating measures
Activity-based costing
Operating measures
Traditional accounting measures
Time
© 2009 Factory Strategies Group LLC. All rights reserved.
4
The Balanced Scorecard
• Ties performance measures to corporate strategy
• “Balance” includes
▫
▫
▫
▫
short & long term objectives
financial and non-financial measures
external & internal measures
various perspectives
• Purposes of the balanced scorecard include
▫
▫
▫
▫
clarify & translate vision & strategy
communicate & link strategic objectives & measures
plan, set targets & align strategic initiatives
enhance strategic feedback & learning
© 2009 Factory Strategies Group LLC. All rights reserved.
5
The Balanced Scorecard and The Big Picture
Strategic
Planning
Mission
and
Vision
Balanced
Scorecard
© 2009 Factory Strategies Group LLC. All rights reserved.
•Activity Based Costing
•Economic Value Added
•Forecasting
•Benchmarking
•Market Research
•Best Practices
•Six Sigma
•Statistical Process Control
•Reengineering
•ISO 9000
•Total Quality Management
•Empowerment
•Learning Organization
•Self-Directed Work Teams
•Change Management
6
Potential Problems with the BSC
• Lack of time for the decision makers to focus on
strategy
▫ Having strategy sessions on a continuous basis is difficult
▫ Running the business seems to come first
• Confusion between operational efficiency and strategy
▫ This is a continual problem
▫ Always ask “do I have options?” if so then it’s strategy
• Difficulty in creating well defined metrics and
connecting them to deliverables
▫ Scalar metrics with defined “units of measure”
• Cascading the objectives down to the staff that can
deliver the results
▫ This is the hardest and where there is the most resistance
© 2009 Factory Strategies Group LLC. All rights reserved.
7
Download

Balanced Scorecard