THE BALANCED SCORECARD

APPROACH

BY
SUMAYYA QUADRI

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WHAT IS BALANCED SCORECARD?

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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BALANCED SCORECARD Concept

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

Financial
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?

Customer
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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