UNIT 07 Balanced scorecards Ng Qu Nhm Most
UNIT 07 Balanced scorecards Ngô Quý Nhâm
Most organizations have difficulty executing their strategies
Harvard’s Research Identified Four Barriers to Strategy Execution
WHAT IS BALANCED SCORECARD?
HARVARD BALANCED SCORECARD
Southwest Airlines’ Strategy
The Balanced Scorecard connects a strategy map to measures, targets, and initiatives.
WHAT IS BALANCED SCORECARD? Definition: The Balanced Scorecard is a management tool that provides stakeholders with a comprehensive measure of how the organization is progressing towards the achievement of its strategic goals.
WHAT IS BALANCED SCORECARD?
WHAT IS BALANCED SCORECARD?
FOUR BSC PERSPECTIVES
Strategy – Strategic Map – BSC
FINACIAL PERSPECTIVE v To satisfy our shareholders, what financial and regulatory objectives must we accomplish? v Example:
CUSTOMER PERSPECTIVE To achieve our vision and financial goals, what customer needs must we serve? Example:
Customer Perspective Possible Performance Measures o Customer Satisfaction (Average) o Satisfaction Gap Analysis (Satisfaction vs. level of Importance) o Satisfaction Distribution (% of each area scored)
INTERNAL BUSINESS PROCESS PERSPECTIVE To satisfy our customers, in which business processes must we excel? For example:
Internal Perspective To satisfy our customers, in which business processes must we excel? Possible Performance Measures o Cycle Time o Completion Rate o Workload and Employee Utilization o Transactions per employee o Errors or Rework
Learning and Growth To achieve our goals and accomplish core activities, how must we learn, communicate and work together? Possible Performance Measures o Employee Satisfaction o Retention and Turnover o Training Hours and Resources o Technology Investment
DOES BSC WORK?
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