The Balanced Scorecard
What is Business Success?
Balanced Scorecard Refocuses Management
The Balanced Scorecard
Kaplan and Norton’s Premise
Popularity
The Balanced Scorecard
The Balanced Scorecard
Basic Business Strategy
The Trouble with Strategy
How can the Balanced Scorecard help?
Four Distinct Perspectives
Translating a Mission into Desired Outcomes
For Each Perspective
Simple Form and Relationships
Objectives
Financial Perspective
Customer Perspective
Internal Perspective
Learning and GrowthPerspective
Measures
Core Financial Measures
Core Customer Measures
Internal Perspective Measures
Core Learning and Growth Measures
Targets
Initiatives
Examples of Initiatives
Next: An example to help students understand howthe Balanced Scorecard works
A Balanced ScorecardExample
Basic Business Strategy
Achieve the strategy? How do we get there?
Strategy Map – Objectives
Strategy Map – Measures and Targets
Strategy Map – Initiatives
Employee Rewards
Employee Rewards$25,000 Equally to Five Managers
Employee Rewards$25,000 Equally to Five Managers
Total Balanced Scorecard Employee Incentives (Assuming Net Income of $115,000)
Next: Moving Beyond the Company’s Overall Scorecard
Departmental and Personal Scorecards
Departmental and Personal Scorecards
Each PerspectiveMust be Addressed
Implementing theBalanced Scorecard
Possible Pitfalls of the Balanced Scorecard
Suggested Reading
Suggested Reading
Suggested Internet Surfing
Suggested Internet Surfing
Questions?Comments?
Thank You
Beyond the Scope
Handling Initiatives
Five Principles of Strategy-Focused Organizations
Implementing theBalanced Scorecard
Implementing theBalanced Scorecard
The Balanced Scorecard and aNew Management Processes
New Management Processes
1. Translating The Vision
2. Communicating and Linking
2. Communicating and Linking
3. Business Planning
4. Feedback and Learning
New Management Processes
The Balanced Scorecard
The Balanced Scorecard
