PROJECT 1 POWER POINT MATERIALS FOR BASIC CONCEPT K N O W L E D G E MANAGEMENT B S C [ Balanced Scorecard ] Group #2 KANG A IN YOON JONG HUN YOON HYE RIM CHA MYUENG ■ Contents Intro. 1. Definition / Back ground 2. Detailed Explanations 3. Market Analysis 4. Vendors / Future Expansion Outro. Q&A REFERENCE Page 2 ■ What’s the B S C ? Definition - Management practice that attempts to complement drivers of past performance (financial measures) with the drivers of future performance, such as customer satisfaction, development of human and intellectual capital, and learning. - (by BusinessDictionary.com) Page 3 ■ Background of B S C Beginning : In 1992, “The Balanced Scorecard – Measures that Drive Performance” [ Harvard Business School Review ] In 1996, THE BALANCE SCORECARD [ Publication ] by Robert S. Kaplan & David P. Norton [ Business scorecard collaborative, Inc. ] Page 4 (1) ■ Background of B S C Motivation “ Not only about MONEY ” [ Limitation of existing financial indicator ] – Need of “ Frame for the comprehensive scoring indicator ” • Accurate performance scoring & feedback • Value evaluation of intangible asset • Indicator for present & future performances • Sharing visions with whole organization Page 5 (2) ■ Detailed Explanation – 4 Perspectives BALANCE COMPREHENSIVE VIEW MISSION STRATEGY VISION GROWTH Page 6 (1) ■ Detailed Explanation – 4 Perspectives -Strategic planning and management system. -Developed by Kaplan and Norton (1992). -Provide organization with metrics against which to measure their success. -Align business activities to the vision and strategy of org. -Underlying Principle : you cannot manage what you can not measure. Page 7 (2) ■ Detailed Explanation – 4 Perspectives (3) DESCRIBES ANY KIND OF ORG. COMPREHENSIVE Page 8 ■ Detailed Explanation – Strategy Mapping Page 9 ■ Market situation - Domestic The former President ‘노무현’ emphasis application of BSC for Outcome driven organization. Centering around government agency and public institution, BSC’s application spread. ‘Public BSC Project Spread’ (Digital Times, 2006) Page 10 ■ Market situation - International Global enterprise’s BSC application rate is 66 %. (2007) [ Bain & Company, 2007 ] Fortune Magazine 64% of Top 100 enterprises applied BSC. (2004) 50% of Global Top 1000 enterprises, applied BSC. 80% of Top 500 enterprises applied BSC. (Niven, 2006) One of 75 theories that are the most important theory at 20 Century. Page 11 ■ Software products Commercial software packages • Executive Strategy Manager • MS Business Scorecard manager Open source software packages • BSPG • BlueOxygen BSC Dashboard Standard office software Using standard office software to provide the same functions as commercial software packages Page 12 ■ Future expansion Balanced scorecard automation Vast & old data Adding leading indicators Index of several measure Customized view Knowledge sharing tool underlying structure Page 13 Page 14 ■ Reference BSC Institute (http://www.balancedscorecard.org/) Business Dictionary (http://www.businessdictionary.com) Wikipedia(Eng ver.) Improve Your Performance “News” – David Wilsey, 2009, Balanced Scorecard Institute) Strategy map (http://strategymap.com.au/) The Balanced Scorecard - Measures that Drive Performance Robert S. Kaplan and David P. Norton. 1992, Jan-Feb, Harvard Business Review https://www.bscol.com/bsc_online/technology/certified/ http://www.12manage.com/methods_balancedscorecard_ko.html Page 15