Balanced Scorecard

presented by Mariam Khan

Vision statement
outlines what a company wants to be

To achieve our vision, how will we sustain our ability to change and improve?

A map is handy to communicate

how you plan to get
(=Strategy map) (=Strategy) (=Mission) (=Vision)

from where you are

to where you want to be

Strategy
is a long term plan of action designed to achieve a particular goal, most often "winning"

Capitalizing on Capabilities Comes in ..

Our only limitations are those which we set up in our minds or permit others to establish for us."
Elizabeth Arden

Learning
perspective

insert

Acquiring knowledge

Process
perspective

Summarizing knowledge

Customer
perspective

:-)

Customer satisfaction

Financial
perspective

Profitable growth

Capability defined .
Capability represents the identity of your firm as perceived by both your employees and your customers. It is your ability to perform better than competitors using a distinctive and difficult to replicate set of business attributes. Capability is a capacity for a set of resources to integratively perform a stretch task

Organizational capabilities
X Individual Organizationa l

Technica An individuals An l functional organizations competence core competence Social An individuals An leadership organizational ability capabilities

Organizational Capability 1 Talent

Ways to evaluate/track this capability Explanation Talent is the organizational capability that attracts, motivates and retains competent and committed people. This is the ability to recognize opportunities and to act immediately. Productivity measures, retention statistics, employee surveys, and direct observation.

Speed

How long it takes to go from concept to commercialization, or from the collection of customer data to changes in customer relations;

Shared Mind-Set & Coherent Brand Identity

This is the organizational capability that ensures that employees and customers have positive and consistent images of and experiences with an organization.

Measuring the degree of consensus among employees when they are all asked what the top three things are that the company wants to be known for in the future.

Accountability

This is being good at obtaining high performance from employees. Performance accountability becomes an organizational capability when employees realize that failure to meet their goals would be unacceptable to the company. This is working across boundaries, ensuring efficiency and leverage.

Examine the tools you use to manage performance (i.e., appraisal forms, variance in compensation based on employee performance, etc.)

Collaboration

Calculate a companys break-up value; Compare the break-up value to the current market value of the assets.

Learning

This is generating and generalizing ideas with impact. New ideas can be generated by benchmarking, experimenting, continuously improving, etc.

Look at what other companies are doing; Hire or develop people with new skills and ideas.

Leadershi p

Being good at embedding leaders throughout the organization. Consistently producing effective leaders is generally an indication of a clear leadership brand. Building long-lasting relationships of trust with certain customers. When a large number of employees have meaningful exposure to or interaction with customers, connectivity is enhanced

You can track your organizations leadership brand by monitoring the pool of future leaders. Identify your key accounts and track the share of those important customers over time; Frequent customer-service surveys may also offer insight into how customers perceive your connectivity. Note how consistently employees respond when asked about the companys strategy. A vitality index (for instance, one that records revenues or profits from products or services created in the last three years) Inventories, direct and indirect labor, capital employed, and costs of goods sold can all be viewed on balance sheets and income statements

Customer Connectiv ity

Strategic Unity

Articulating and sharing a strategic point of view. There are three levels of strategic unity: intellectual, behavioral and procedural Doing something new in both content and process.

10

Innovatio n

11

Efficiency

Being good at managing costs.

Learning
perspective

insert

How will we sustain our ability to change and improve?

Process
perspective

What business processes must we excel at?

Customer
perspective

:-)

How should we appear to our customers?

Financial
perspective

How should we appear to our shareholders?

Internal Gurantee helps..

Commitment by one part of an organization to another To deliver its product or service to the complete satisfaction of the internal customer.

If it fails to do so, it will incur a meaningful penalty, monetary or otherwise.

Moreover, it is the employees involved--not management--who devise the commitment. The result?

And an environment of blameless error takes hold in which employees are rewarded, not punished, for identifying problems instead of sweeping them under the rug.
How to achieve this ? 1. A department must first identify its mission in the organization.

2. The ability to state exactly who its internal customers are.

3. Third, the department should identify what its internal customers need. 4. Fourth, drawing on their input, the department should design a guarantee that reflects those needs 5. Finally, those involved must decide on a penalty that is meaningful to the internal customer as well as to the supplier

Thank you ..