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Using the balanced_score_card

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Felix Sie

The document discusses the balanced scorecard (BSC) framework created by Kaplan and Norton in the 1990s. The BSC is used for strategic management and organizational performance measurement. It balances operations between financial and non-financial aspects and links performance to strategy. The BSC translates vision into objectives across four perspectives - financial, customer, internal processes, and learning and growth. It helps communicate strategy, track key performance indicators, and align budgets and processes with strategic goals. Potential benefits include a holistic strategic focus, competency building, and stakeholder communication. Criticisms are that it requires significant time and effort and may not be suitable for smaller companies.

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Using the balanced Score Card as a strategic management system By Robert Kaplan & David Norton Presented by: Felix Sie
Agenda • Background of BSC • Objectives • BSC - What is it? • How does it work? • Benefits of BSC • Criticisms of BSC • Key Learning and Conclusion
Background • Developed by Dr. Robert Kaplan and Dr. David Norton between 1990 - 1993 • Used for Strategic Management & Organizational performance measurement • A study in 1997 by Kurtzman found 64 percent of respondents used some form of BSC with various types of perspectives
Objectives Balance Scorecard is a framework for coordinating and fine-tuning a company’s operations and processes so that they are aligned with strategy
BSC- What is it? http://www.valuebasedmanagement.net/methods_balancedscor ecard.html
How does it work? http://www.int-med.uiowa.edu/research/tlirp/ISATNA/report01.html
BSC - In practice! Translating the vision: • What are we trying to achieve through the vision? Communicating and linking • Does each business unit understand its role and how does their individual goals tie into the organization’s score card? Business planning • Is organization’s budget and other processes aligned with the strategic plan? – bring strategy and budget together to achieve the goals Feedback and learning • Did we achieve our goals? If not then why?
Benefits of using BSC It helps to balance operations between financial and non-financial aspects Build the company’s competencies in a systematic way  Communicate the organization’s strategy to stakeholders and customers Track only what matters Link performance to compensation
Criticisms of the BSC • It requires lots of time and planning sessions to layout what matters for your organization • Can be challenging for smaller companies to use – if they are still struggling to find what matters • It can be challenging to bring everyone on board to use the scorecard
Key Learning & Conclusion • The tool provides a holistic approach for obtaining a balance in an organization • For start-ups and emerging companies the BSC might not be applicable until companies learn about what matters • By its nature, it helps an organization to align its processes and focus on achieving long-term goals
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Using the balanced_score_card

  • 1. Using the balanced Score Card as a strategic management system By Robert Kaplan & David Norton Presented by: Felix Sie
  • 2. Agenda • Background of BSC • Objectives • BSC - What is it? • How does it work? • Benefits of BSC • Criticisms of BSC • Key Learning and Conclusion
  • 3. Background • Developed by Dr. Robert Kaplan and Dr. David Norton between 1990 - 1993 • Used for Strategic Management & Organizational performance measurement • A study in 1997 by Kurtzman found 64 percent of respondents used some form of BSC with various types of perspectives
  • 4. Objectives Balance Scorecard is a framework for coordinating and fine-tuning a company’s operations and processes so that they are aligned with strategy
  • 5. BSC- What is it? http://www.valuebasedmanagement.net/methods_balancedscor ecard.html
  • 6. How does it work? http://www.int-med.uiowa.edu/research/tlirp/ISATNA/report01.html
  • 7. BSC - In practice! Translating the vision: • What are we trying to achieve through the vision? Communicating and linking • Does each business unit understand its role and how does their individual goals tie into the organization’s score card? Business planning • Is organization’s budget and other processes aligned with the strategic plan? – bring strategy and budget together to achieve the goals Feedback and learning • Did we achieve our goals? If not then why?
  • 8. Benefits of using BSC It helps to balance operations between financial and non-financial aspects Build the company’s competencies in a systematic way  Communicate the organization’s strategy to stakeholders and customers Track only what matters Link performance to compensation
  • 9. Criticisms of the BSC • It requires lots of time and planning sessions to layout what matters for your organization • Can be challenging for smaller companies to use – if they are still struggling to find what matters • It can be challenging to bring everyone on board to use the scorecard
  • 10. Key Learning & Conclusion • The tool provides a holistic approach for obtaining a balance in an organization • For start-ups and emerging companies the BSC might not be applicable until companies learn about what matters • By its nature, it helps an organization to align its processes and focus on achieving long-term goals