Balanced Scorecard Analysis
Justin Haffey
Caroline Myers
Kelly Vacari

A new approach to strategic management
 Developed in early 1990 by Dr. Robert
Kaplan and Dr. David Norton.
 Was developed because traditional financial
measures were inadequate.
What is the Balanced
Scorecard?

The balanced scorecard is a management
system that enables organizations to clarify
their vision and strategy and translate them
into action.
 It provides feedback around both the
internal business process and external
outcomes.
Four components of Balanced
Scorecard
Learning and
Growth Perspective
Business Process
Perspective
Customer
Perspective
Financial
Perspective
Learning and Growth
Perspective

An organization's ability to innovate,
improve, and learn ties directly to its value
as an organization.

How can we continue to improve and
create value for our services?
Business Process Perspective

Must focus on critical internal operations
that enable the organization to satisfy
customer needs.

To satisfy our shareholders, what business
processes must we excel at?
Customer Perspective

Must know if their organization is satisfying
customer needs.

To achieve our vision, how should we
appear to our customers?
Financial Perspective

In the private sector, measure typically
focused on profit and market share.

To succeed financially, how do we appear to
our shareholders?
Double Feedback Loop

The balanced scorecard incorporates
feedback around internal business process
outputs, as in TQM, but also a feedback
around the outcomes of business strategies
Outcomes Metric

Metrics provide a factual basis for defining:
– Strategic feedback to show the present status of
–
–
–
–
the organization.
Diagnostic feedback into various processes to
guide improvements.
Trends in performance over time.
Feedback around the measurement methods
themselves
Quantitative inputs to forecasting methods for
decision support systems
Tie to Employee Performance

A balanced approach to employee
performance appraisal allows management
to get a complete look at their performance.

Managers are able to provide information
needed to align employee performance
plans with organizational goals.
Balanced Scorecard Adopters

Non-Profit Organizations:
– Vinfen Corporation
– Private Schools

Government Organizations:
–
–
–
–
Federal Aviation Administration
Department of Energy
United Postal Service
Colleges and Universities
Adopters Continued

Commercial Organizations:
– Southwest Airlines
– IBM
– Pfizer
– Ford Motor Company
FAA Logistics Center
Financial
Strategy 1: Increase revenue and margin.
Strategy 2: Achieve a return on investment
for new systems
Strategy 3: Decrease or stabilize core
product prices.
Customer
Strategy 1: Increase
customer satisfaction.
Strategy 2: Increase
Quality Ratings.
Strategy 3: Increase
customer support to
enhance system
availability.
Internal
Processes
Mission:
Strategy 1: Increase the
number of projects
organically supported.
Grow the Logistics Center as a provider of
choice for aviation-related equipment through
re-engineering, repair, and supply chain
management of future and legacy systems.
Strategy 2: Improve
product delivery
processes and systems.
Learning & Growth
Strategy 1: Develop workforce strategies
that will identify and train to competencies.
Strategy 2: Integrate an automated
warehouse management system.
Strategy 3: Improve
internal cost analysis
processes.
Conclusion

The Balanced Scorecard Analysis is very
beneficial to an organization.
 It enables executives to truly execute their
strategies.
 Any Questions??