Balanced

Scorecard
Jennifer Rohita

What is BSC?
The Balanced Scorecard is a strategic planning and management

system used to align business activities to the vision and strategy of

the organization by monitoring performance against strategic goals.

Balanced Scorecard Concept was first published in 1992 by Kaplan

and Norton, a book followed in 1996.

The approach is to provide 'balance' to the financial perspective.

helping

organizations

articulate

strategy

in

actionable

terms,

provides a road map for strategy execution, for mobilizing and

aligning executives and employees, and making strategy a continual
process.

WHY BSC?

DESIGN OF BSC

SHOULD BSC BE REQUIRED?

Increased Creativity and Unexpected Ideas.
Helps align key performance measures with strategy at all levels of an organization.
Provides management with a comprehensive picture of business operations.
Facilitates communication and understanding of business goals and strategies at all levels
of an organization.
Maximized Cooperation - Team members are focused on helping one another succeed.
Usable Results - Transforms strategy into action and desired behaviors.
Provides strategic feedback and learning.
Initiatives are continually measured and evaluated against industry standards
Unique Competitive Advantage
Reduced Time-frames.
Improved Decisions and Better Solutions.
Improved Processes.

CRITICISMS OF BSC
Lack of a well Defined Strategy

RECOMMENDATIONS
Design the balanced scorecard on the basis of a communicated strategy - and at the same
time use the balanced scorecard to communicate your strategy.
Design the balanced scorecard jointly withallmajor forces within a company. These do not
only include the entire management team, but also innovative "lateral thinkers", members
of the works council or "friends of the family", who bring less "company insider's
blindness", but instead "the view from outside".
Design the balanced scorecard using your own ideas .In this context moderated workshops
and external help can be useful during implementation.
Design the balanced scorecard in line with the specific circumstances of your business.
Design the balanced scorecard in clear structures with respect to goals, the choice of
appropriate actions, the organisation of practical work and reports.
The balanced scorecard tool can only display the effectiveness that you anticipate from it
if there is the interplay of the various structures. So one should pay attention to
transparency.

EXAMPLES
BIOCO, a mid-sized biopharmaceutical company successfully
implemented the BSC at the corporate level and adapted it
all the down to the individual employee level. This success
was possible because they secured commitment from the
top management, invested in training, defined strategy
maps and articulated how progress would be tracked.

TATAs are the best example of successful implementation in

their complex operations.

THANK
YOU!