Balanced Scorecard
Quick Guide
April, 2010
Basics & Best Practices
Terminologies
Balanced Scorecard
Quick Guide
In addition, Strategic & Business Planning relies on well-defined,
best practice terminology
Strategic & Business Planning Process Key Terminology
Units
 Any Business or Functional Unit. According to the new organization structure, GACA has five Business Units (KKIA, KAIA,
KFIA, Domestic Airports and ANS) and five Functional Units (Corporate Core, IT, Finance, Human Resources, Internal
Audit) and a Safety and Economic Regulation function1
Key Performance
Indicators (KPI)
 A measure used to monitor how well a business is achieving its quantifiable objectives. KPIs are found at both the
strategic (assets turnover, customer satisfaction index) or operational levels (e.g. traffic volume)
Goal
Objective
 Long-term target value (a number) of KPI; set to be attained after five years
 Short-term target value (a number) of KPI; set to be attained in one year
Strategy
 A means or action that will lead to the achievement of a goal (five years ahead)
Initiative
 A means or action that will lead to the achievement of the objective (one years ahead). A set of initiatives form a
strategy
Booz & Company
28 March 2009
Balanced Scorecard
Quick Guide
Contents
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BSC general work flow
Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
Balanced Scorecard
Quick Guide
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BSC general work flow
Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
Balanced Scorecard
Quick Guide
1. Internal Scanning
2. External Scanning
3. SWOT Analysis
4. Strategy Mapping
5. KPIs Setting
One Of The Best Practices
For BSC Work Flow
6. Targets Setting
7. Initiatives Setting
8. BSC Dashboard
9. Performance
Monitoring
Balanced Scorecard
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BSC general work flow
Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
Balanced Scorecard
Quick Guide
Internal Scanning Summary
Introduction
Purpose
Suitable
Techniques
Expected
Outcomes
Internal scanning is a strategic planning technique that helps in
determining the firm’s strengths and weaknesses and any
related issues inside the firm
• Knowing firm’s strengths and weaknesses
• Getting exposed to the firm’s processes and chain of commands
The following techniques are suitable to serve the internal scanning purpose:
• Value Chain Analysis
• Capability Assessment
Once the internal scanning is done, it is expected to have:
• Firm’s strengths
• Firm’s weaknesses
• Firm’s processes and value transferred from each process to another
• potentials for improvements
Balanced Scorecard
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Now
• BSC general work flow
• Internal Scanning Summary
– Related Templates
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External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
Balanced Scorecard
Quick Guide
Value Chain Analysis
Activity A
 Key
Responsibilities
 Value transferred
Activity B
Activity C
Activity D
 Key
Responsibilities
 Key
Responsibilities
 Key
Responsibilities
 Value transferred
 Value transferred
 Value transferred
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Capability Assessment
Organization
People
Process
System
Readiness (%) Readiness (%) Readiness (%) Readiness (%)
Evidence and
Comments
Activity A
Activity B
Activity C
Activity D
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Now
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BSC general work flow
Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
Balanced Scorecard
Quick Guide
External Scanning Summary
Introduction
Purpose
Suitable
Techniques
Expected
Outcomes
External scanning is a strategic planning technique that helps in
determining the firm’s opportunities and threats and any
related issues outside the firm
• Knowing firm’s opportunities and threats
• Getting exposed to the firm’s competitors and market changes
The following techniques are suitable to serve the external scanning purpose:
• Industry Trends
• Porter 5 Forces Model
Once the external scanning is done, it is expected to have:
• Firm’s opportunities
• Firm’s threats
• New trends and demands
• potentials for investments and competitive advantages
Balanced Scorecard
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Now
• BSC general work flow
• Internal Scanning Summary
• External Analysis Summary
– Related Templates
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SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
Balanced Scorecard
Quick Guide
Corporate Industry Trends
Supporting Evidence
Implications
Trend A
Market
Trends
Trend A
Regulatory
Trends
Trend A
Technology
Trends
Trend B
Trend A
Other
Trends
Competitive
Trends
Trend Description
Trend A
Trend B
Trend B
Trend B
Trend B
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General External Environment
Technological
Change
Specific
International
Events
Demographic
Trends
Entry
Complementors
Rivalry
Focal
Firm
Buyers
Legal/Political
Conditions
Industry
Suppliers
Substitutes
Cultural
Trends
Economic
Climate
Balanced Scorecard
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Now
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BSC general work flow
Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
Balanced Scorecard
Quick Guide
SWOT Summary
Introduction
Purpose
SWOT is a strategic planning technique that helps in
determining the firm’s strategic directions and priories
Knowing what strategies will sustain the growth of the firm and what
will be done in order to extract advantaged over the competitors
Suitable
Techniques
The following techniques are suitable to serve the SWOT
purpose:
• SWOT Matching
Expected
Outcomes
Once the SWOT is done, it is expected to have:
• Firm’s strategic directions and priorities
Balanced Scorecard
Quick Guide
Now
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BSC general work flow
Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
– Related Templates
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Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
Balanced Scorecard
Quick Guide
SWOT Summary
External Factors
Threats
Opportunities
Internal Factors
Strengths
1. Internal Strengths Matched with
External Opportunities
 …
 …
 …
 …
3. Internal Strengths Matched with
External Threats
 …
 …
 …
 …
Weaknesses
2. Internal Weaknesses Relative to
External Opportunities
 …
 …
 …
 …
4. Internal Weaknesses Relative to
External Threats
 …
 …
 …
 …
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Quick Guide
SWOT Analysis
SO1
WT2
WO4
SO
ST
WO
WT
Leverage the planned expansion for Jeddah airport to attract the growing
charter market in the region
Strategic Priorities
1 Explore New
Market Segments
to Expand
Revenue Base
WO5
SO1
2
WO1
WO2
SO2
WO3
3
WO6
Balanced Scorecard
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Now
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BSC general work flow
Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
Balanced Scorecard
Quick Guide
Strategy Mapping Summary
Introduction
Purpose
Strategy mapping is a strategic planning technique that helps in
representing the firm’s strategies in such a way that shows the
cause and effect of each strategy
To ensure that each strategy does really serve a specific other strategy,
and the overall strategies serve and feed the firm's vision
Suitable
Techniques
The following techniques are suitable to serve the strategy
mapping purpose:
• Strategy Map
Expected
Outcomes
Once the strategy mapping is done, it is expected to have:
• Firm’s strategy map
Balanced Scorecard
Quick Guide
Now
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BSC general work flow
Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
– Related Templates
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KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
Balanced Scorecard
Quick Guide
VISION
FINANCIAL
PERSPECTIVE
CUSTOMER
PERSPECTIVE
INTERNAL
PERSPECTIVE
LEARNING AND GROWTH
PERSPECTIVE
Balanced Scorecard
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Now
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BSC general work flow
Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
Balanced Scorecard
Quick Guide
KPIs Setting Summary
Introduction
Purpose
KPIs (Key Performance Indicators) are measures that indicate
how is the progress of strategic objectives and targets
achievements
To indicate and alarm the management for strategy and targets
achievements or deviations
Suitable
Techniques
•KPIs Profile
• Benchmarking
• KPIs Libraries
Expected
Outcomes
Once the KPIs setting is done, it is expected to have:
• Firm’s KPIs
• KPIs definitions & frequency of review
•KPIs formulas
• Strategic objectives that are measures by specific KPIs
• KPIs owners
Balanced Scorecard
Quick Guide
Now
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BSC general work flow
Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
– Related Templates
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Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
Balanced Scorecard
Quick Guide
KPI Definition
KPI Formula
Frequency
Owner
Definition
X+Y = Z
W/M/Q/S/A
Name / Dept.
Definition
X+Y = Z
W/M/Q/S/A
Name / Dept.
Definition
X+Y = Z
W/M/Q/S/A
Name / Dept.
Definition
X+Y = Z
W/M/Q/S/A
Name / Dept.
Balanced Scorecard
Quick Guide
Now
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BSC general work flow
Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
Balanced Scorecard
Quick Guide
Targets Setting Summary
Introduction
Purpose
Targets are those values (determined in each KPI) that the
management wants to achieve within a certain time
To make the KPIs and the measurement more quantifiable and
measureable
Suitable
Techniques
• Benchmarking
• Forecasting
• Feasibility studies
• Market Research
Expected
Outcomes
Once the targets setting is done, it is expected to have:
• KPIs targets
• Targets values & units
Balanced Scorecard
Quick Guide
Now
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BSC general work flow
Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
Balanced Scorecard
Quick Guide
Initiatives Setting Summary
Introduction
Purpose
Are those actions that are predesigned and dedicated to
achieve the determined targets and to activate specific KPIs
To help the firm achieving strategic objectives
Suitable
Techniques
• Benchmarking
•Feasibility studies
• Market Research
• R&D
Expected
Outcomes
Once the initiatives setting is done, it is expected to have:
• Strategic plan initiatives
• Owners
Balanced Scorecard
Quick Guide
Now
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BSC general work flow
Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
– Related Templates
• BSC Dashboard Summary
• Performance Assessment Summary
Balanced Scorecard
Quick Guide
Strategic Priority
Strategic Priority A
Strategic Priority B
Strategic Priority C
Strategic Priority D
KPI
1.
2.
3.
KPI1
KPI2
KPI3
1.
2.
3.
KPI1
KPI2
KPI3
1.
2.
3.
KPI1
KPI2
KPI3
1.
2.
3.
KPI1
KPI2
KPI3
Target
Initiative
VALUE (unit)
1.
2.
3.
Action A
Action B
Action C
VALUE (unit)
1.
2.
3.
Action A
Action B
Action C
VALUE (unit)
1.
2.
3.
Action A
Action B
Action C
VALUE (unit)
1.
2.
3.
Action A
Action B
Action C
Balanced Scorecard
Quick Guide
Now
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BSC general work flow
Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
Balanced Scorecard
Quick Guide
BSC Dashboard Summary
Introduction
Purpose
It is a simple visualization of the firm’s performance
To help the management taking decisions and being up to date with the
firm’s overall performance
Suitable
Techniques
• MS Power Point Presentation
• MS Excel
• other software
Expected
Outcomes
Once the BSC dashboard is done, it is expected to have:
• Projected BSC perspectives and firm's strategic priorities with
notifying designs
Balanced Scorecard
Quick Guide
Now
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BSC general work flow
Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
– Related Templates
• Performance Assessment Summary
Balanced Scorecard
Quick Guide
Financial Dimension
Indicators
Internal Processes Dimension
Indicators
% (Actual
/ Target)
Internal Processes Dimension
Indicators
% (Actual
/ Target)
Learning & Growth Dimension
Indicators
% (Actual
/ Target)
% (Actual
/ Target)
Actual < 90% of Target
90% of Target < Actual < 100% of Target
Actual >= 100% of Target
Balanced Scorecard
Quick Guide
Now
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BSC general work flow
Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
Balanced Scorecard
Quick Guide
Performance Assessment Summary
Introduction
Purpose
Suitable
Techniques
Expected
Outcomes
It is a systematic examination of the whole strategic plan and
its achievements and implications
Contiguous learning and improvement
• Cause& Effect
• systematic inspections and assessment
• Corrective planning
• Preventive planning
• Lessons Learned
Once the performance assessment is done, it is expected to have:
• Performance assessment reports
Balanced Scorecard
Quick Guide
Now
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BSC general work flow
Internal Scanning Summary
External Analysis Summary
SWOT Analysis Summary
Strategy Mapping Summary
KPIs Setting Summary
Targets Setting Summary
Initiatives Setting Summary
BSC Dashboard Summary
Performance Assessment Summary
– Related Templates
Balanced Scorecard
Quick Guide
External Factors
Description
A
X
Internal Factors
Operational Lever
1
2
X
Root Cause
Corrective Action Plan
% Plan Completed
09/08
04/09
30%
11/08
01/09
33%
80%
dd/yy
dd/yy
w%
Balanced Scorecard
Quick Guide
Comments
KPI(Target Unit)
Actual
 Summary of drivers for performance
Target
40
40
30
30
30
20
10
20
6
5
8
10
4
0
0
M-3
M-2
M-1
Current Month
Cumulative To Date
 Summary of actions taken to rectify any
variance
Overall Status
Based on both current performance and on cumulative-to-date performance
Gap =< -10% of Target
-10% of Target < Gap < 0% of Target
Gap >= 0% of Target
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End of
Balanced Scorecard
Quick Guide