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The Balanced Scorecard is a strategic planning and management system used to align business activites to the vision and strategy of the organization by monitoring perfomance against strategic goals

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It was publishes in 1992 by kaplan and Norton, a book followed in 1996

Traditional performance measurement that only focus on external accounting data are obsolete The approach is to provide balance to the finacial persperctive.

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Why use a Balance Scorecard?

Improve organisational performance by measuring what matters Increase focus on strategy and results Align organization strategy with workers on a day-to-day basis Focus on drivers key to future performance Improve communication of the organizations Vision and Strategy Prioritize Projects / Initiatives
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4 Original Business Perspectives

The Balanced Scorecard model suggest that we view the organization from 4 perspective
Then Develop metrics, collect data and analyze it relative to each of these perspectives
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4 Business Perspective Question

What must we do to create sustainable economic value?

Internal Business Process

To satisfy our stakeholders what must be our levels of productivity, efficiency, and quality?

Learning and Growth

How does our employee performance management system, including feedback to employees, support height performance?

What do our Customer require from s and how are we doing according to those requirements

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Balanced Scorecard Strategy Map

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Key Implementation Success Factors

Obtaining executive sponsorship and commitment
Involving a broad base of leaders, managers and employees

Enhance information system

Monitored Progress

Beginning interactive (two-way) communication first

Getting outside help if needed

Greater Customer Satisfaction

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Scorecard Disadvantages
It is not a tool you can just think up one night to solve a problem. Instead, it is recommended that you hold a meeting to plan out what goals you would like to see your company reach in each of the four above areas.
while the balanced scorecard gives you an overall view of the four areas for concern in business growth and development, these four areas do not paint the whole picture. The financial information included on the scorecard is limited. Instead, to be successfully implemented, the balanced scorecard must be part of a bigger strategy for company growth

many companies use metrics that are not applicable to their own situation. It is vitally important when using balanced scorecards to make the information being tracked applicable to your needs. Otherwise, the metrics will be meaningless.

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Thank You for your time

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