M Afdhalurrahman

(12010117190075)

M Naufal Zhorif
(12010117190111)

Tabindah Khanan

GROUP 8 (12010117190173)

Mendrika Randrianaivo
(12010117190226)

Kayla Noor A
BALANCED SCORECARD (12010117190228)
  The balanced scorecard (BSC) is a strategic planning and
management system that organizations use to:
1. Communicate what they are trying to accomplish

Definition 2. Align the day-to-day work that everyone is doing with strategy
3. Prioritize projects, products, and services
4. Measure and monitor progress towards strategic targets
  BSCs are used extensively in business and industry, government, and
nonprofit organizations worldwide. BSC has also been selected by
Who Uses the the editors of Harvard Business Review as one of the most influential
business ideas of the past 75 years.
Balanced
Scorecard
(BSC)?
 Profit perspective Non-Profit Organization
• Finance • Mission
• Customer • Beneficieries (tied with finance)
• Internal • Internal Processes
• People (growth) • People

BSC
Perspective
Government Funded
Misc. Changes to keep in mind
• Mission (outcomes)
• L&G
• Customers (stakeholders)
• Customer
• Internal Processes
• Internal Processes
• People
• Regulated Organizations
• Finance
Strategic objective

1. Develop strategic objectives for strategic

themes
2. Create company-wide strategic
objectives from theme objectives
3. Describe and document the strategic
objectives
4. Identify objective owners, their roles and
responsibilities
BSC
Terminology:
Strategy
Mapping

 A strategy map is a
simple graphic that
shows a logical,
cause-and-effect
connection between
strategic objectives
BSC  KPIs provides a focus for strategic and operational improvement,
Terminology: create an analytical basis for decision making and help focus
attention on what matters most.
Measures (Key  Managing with the use of KPIs includes setting targets and
Performance tracking progress against that target.

Indicators)  Managing with KPIs often means working to improve leading

indicators.
  Provide an objective way to see if strategy is working
 Offer a comparison that gauges the degree of performance
change over time
 Focus employees' attention on what matters most to success
Good KPIs  Allow measurement of accomplishments, not just of the work that
is performed
 Provide a common language for communication
 Help reduce intangible uncertainty
The relative business intelligence value of a set of
measurements is greatly improved when the
organization understands how various metrics
are used and how different types of measures
contribute to the picture of how the organization
is doing. KPIs can be categorized into several
different types:

 Inputs
 Process
 Outputs
 Outcomes
 Project
BSC Cascading a balanced means to translate the corporate-
Terminology: wide scorecard down to business units, support units or
departments and then teams or individuals.
Cascading
 Disciplined, practical approach to developing a strategic planning
BSC and management system are parts of balanced scorecard. Training
is an integral part of the framework as is coaching, change
Development management, and problem solving.
BSC Automation and performance analysis

 Once a scorecard has been developed and

implemented, performance management
software can be used to get the right
performance information to the right
people at the right time.

 Automation adds structure and discipline to

implementing the Balanced Scorecard
system, helps transform disparate
corporate data into information and
knowledge, and helps communicate
performance information.
  Better Strategic Planning
 Improved Strategy Communication
Benefits of  Better Management Information
balanced  Improved Performance Reporting
scorecard  Monitor the current performance
 Improve decisions & better solutions
 Provide strategic feedback
  Takes Time

Disadvantages  Not Fully Efficient

 High Implementation Costs
of Balanced
 Lack of External Focus
Scorecard
THANK YOU