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Really

Simple
Balanced
Scorecard

By Samurai
Textbook examples of
Balanced Scorecard
are complex
Manager’s Toolbox example of
Balanced Scorecard
is simple
1 A4
to prepare

1 slide
to communicate

1 A4
to execute
insert
Learning Acquiring knowledge
perspective

Process Summarizing knowledge


perspective

Customer :-) Customer satisfaction


perspective

Financial ¥€$ Profitable growth


perspective
Textbooks say
“Ultimately all causal paths
lead to financial measures.”
Ultimately all causal paths
lead to financial measures

Financial perspective

Customer perspective

Process perspective

Learning perspective
That’s an uphill battle!

Financial perspective

Customer perspective

Process perspective

Learning perspective
That’s an uphill battle!

Been there,
Financial perspective done that!

Customer perspective

Process perspective

Learning perspective
They stumbled on learning
With jeans, sneakers & ¥100 raincoats
In really, really, really bad hail storm
1 hour to nearest shelter
Financial perspective

Customer perspective

Process perspective

Learning perspective
The fundamental questions

Financial perspective “To succeed financially, how should we


appear to our shareholders?”

Customer perspective “To achieve our vision, how should we


appear to our customers?”

Process perspective “To satisfy our shareholders and customers,


what business processes must we excel at?”

Learning perspective “To achieve our vision, how will we


sustain our ability to change and improve?”
To achieve our vision,
how will we sustain our ability
to change and improve?
Manager’s Toolbox
turns the perspectives
upside down
Learning insert How will we sustain our
perspective ability to change and improve?

Process What business processes


perspective must we excel at?

Customer :-) How should we


perspective appear to our customers?

Financial ¥€$ How should we


perspective appear to our shareholders?
Ultimately all causal paths
start from
learning perspective
Ultimately all causal paths
start from learning
perspective
Learning perspective

Process perspective

Customer perspective

Financial perspective
Coming downhill is fun!
Learning perspective

Process perspective

Customer perspective

Financial perspective
Actually it is a child's play!
My son
Learning perspective
and my daughter
ready to show
what they’ve
learned. Process perspective

Customer perspective

Financial perspective
And business is down there
“Let’s take a break
down there!” Learning perspective

Process perspective

Customer perspective

Financial perspective
Textbook says
Balanced Scorecard
is a management system
And that’s true!
Scorecard is a
Manageme
nt
System
Not just a
measurement system
You do not just measure
your heart beat
You use the
heart rate monitor
to manage your exercise
In order to
Last longer
Feel good
Improve fitness
Control weight

… and to improve learning

Rule #1:
Exercise boosts
brain power
Dr. John Medina
Brain Rules
Textbooks say
“Strategy map helps
to communicate strategy.”
?
Does this really
help to communicate
their strategy to you?
The Chip brothers call it
Curse of Knowledge
The Chip brothers call it
Curse of Knowledge
Trying to tell you everything
about every possible strategy,
with perfect accuracy,
in one page.
The Chip brothers call it
Curse of Knowledge
Trying to tell you everything
about every possible strategy,
with perfect accuracy,
t
in one page. Is no stick
a d e to
m
You need to
Make it simple,
find the core of the idea,
strip the idea down
to its most critical essence.
You need to
Make it simple,
find the core of the idea,
strip the idea down
to its most critical essence.

five
other
+ =
sticky
elements
First we need to go
back to the basics
Mission statement
tells you what the company is now
“We’re on
a mission from God!”
“We’re on
a mission from God!”

Driven by their mission


“The Catholic orphanage
they grew up in
needs to pay
$5,000 taxes
in 11 days,
or else
it will be closed.”
“We’re on
a mission from God!”

Driven by their mission They’ll never get caught


“The Catholic orphanage by
they grew up in the police,
needs to pay ex-girlfriend,
$5,000 taxes Country Bob,
in 11 days, Good Old Boys,
or else Illinois Nazis,
it will be closed.” more police,
National Guard,
SWAT teams.
Vision statement
outlines what a company
wants to be
“Imagine all the people
living life in peace!”
Well communicated Vision
If you imagine,
can you hear it?
Strategy
is a long term plan of action
designed to achieve a particular
goal, most often "winning"
A map is handy to communicate
(=Strategy map)

how you plan to get


(=Strategy)

from where you are


(=Mission)

to where you want to be


(=Vision)
Now, let’s make the
Strategy map
for Manager’s Toolbox
1) Take an A4 paper
2) Draw a table
3) Fill in the key words
4) Fill in the Mission
Life-long learning
5) Fill in the Vision
Improved management and leadership skills
6) Fill in the Strategy
To internalize and summarize the knowledge
I need during my management career.
7) Draw the Strategy Map
Does this communicate
my strategy to you?
That was just the beginning…
Balanced
Scorecard
is a
management
tool
And should be used in
management meetings
8) Measures are checked
Oops, the measures…
Let’s take just one example,
but a typically difficult one
Customer satisfaction
I am the only customer to
Manager’s Toolbox and
I will be satisfied if
People visit my blog
and leave comments
People visit my blog
and leave comments
here
People visit my blog
and leave comments
or
view my presentations
and download them
People visit my blog
and leave comments
or
view my presentations
and download
here
them
People visit my blog
and leave comments
or
view my presentations
and download
here
them
Where were we?
Balanced Scorecard
is used in
management meetings
8) Measures are checked
9) Achievement is checked
10)Trend is followed
And last but not least
11)Actions are agreed
8) And again in next meeting
That is Manager’s Toolbox’s

Really
Simple
Balanced
Scorecard

By Samurai
1 A4 to prepare
1 slide to communicate
1 A4 to execute
But you need
100%
Management
commitment
to build
and use a
management
system
I have
100% management support
and I’ve read these books

This is a good textbook!


by Samurai

http://managerstoolbox.blogspot.com/
Good luck on building and using
Really Simple Balanced Scorecard!

Send me an email
and I’ll send you the
step-by-step excel template
Photos
Hikers at Mt Fuji & children skiing, my personal photos
Samurai sword, Pulse, Trekking, You are here –map, Tool, Meeting room & Smiley
from Stock.xchng http://www.sxc.hu/
Mt Fuji, http://www.sxc.hu/photo/907490
Ski resort, http://www.flickr.com/photos/buck82/94755839/
Snow boarders, http://www.flickr.com/photos/altus/370571191/
Heart rate monitor, http://www.flickr.com/photos/publicenergy/254413431/
Brain rules, http://www.brainrules.net/mediakit
Lennon’s Imagine http://www.flickr.com/photos/jeffpearce/473580035/
Manager, http://www.sxc.hu/photo/708280
DVD & book covers, www.amazon.com
Wikipedia, www.wikipedia.org
Exercise zones, www.heartratemonitorsusa.com
Mt Fuji routes & Hakuba ski map, google images (couldn’t find anywhere else)
Complex strategy map, www.valuebasedmanagement.net