Organizational Appraisal Balance Scorecard. Presented By: Kavya M Chandra (82017) Barti Gola (82056) Rohit Verma (82037) Suhail Khan (82079). Agenda. Introduction Importance Linking Balance Scorecard measures to Business strategy
Kavya M Chandra (82017)
Suhail Khan (82079)
Balancing compliancewith added value
Key performance ratios
Balancing leading withtrailing indicators
Time, cost, quality
Balancing inputsand outputs
Learning and growth
Balancing soft and
3. The company must decide which perspective it must adopt. It also needs to analyze the areas in which it is not performing as expected.
4. The company must examine the implication of the vision for each perspective. For example, In the costumer perspective, a company should clearly define as to how it is going to build market share, build loyalty with existing costumers and acquire new costumers etc.
5. This step involves creating top five objectives for each perspective. These objectives will help a firm in deciding the top criteria for each perspective.
6. In this step a balance set of measures should be created that bring in congruence between the short term and the long term consideration of the organization. This stage also involves assessing the cost associated with collecting the data for the proposed perspectives.
7. The measures developed in the above step should be communicated to top management for their approval. After approval, the measures must be communicated to the whole organization.
8. This score card should be communicated to the appropriate organizational units. Depending on the size of the organization, score cards can be created for various divisions, business units, and department and in some cases for each employee.
9. The next stage involves creating goals for the each measure, indicating short and long term objectives.
10. The next step involves developing an action plan for the successful implementation of the organization’s projects.
11. The final step involves implementing the balance score card process by conducting regular reviews against the current score card and the effectiveness of the current score card and strategy. It also involves discussion about the progress of the score
3. Linkage to financial aspects: According to this principle a balance score card should be linked to financial aspects like return on capital employed of economic value added. Programs such as total quality management, employee empowerment should be linked to outcomes that directly influence costumers and deliver future financial performance.
These three principles link the balance score card to strategy.
6. Create appropriate budgeting, tracking, communication, and reward systems;
7. Collect and analyze performance data and compare actual results with desired performance;
8. Take action to close unfavorable gaps.
6. Define repeatable models that allow you to win again and again
7. Identify what it will take to win from the standpoints of organization and capabilities
8. Be dynamic and flexible, with contingency plans for reacting to leading indicators of external changes
9. Be implementable; that is be achievable, affordable and focused
10. Translate into action and drive to results
Bain & companyclients have found new sources of profitable growth, repositioned their businesses for the future, and sharpened their competitive advantage. Since 1983, their clients have outperformed the stock market by a ratio of four to one.
To reach its full potential, a company must achieve world class performance across multiple dimensions. Improving performance may come in the form of:
Revenue enhancement, cost management, supply chain, purchasing, manufacturing, service operations, complexity management, change management, lean six sigma, capability sourcing, and/or business process redesign. In combination with a differentiated and well focused strategy, performance improvement is fundamental to a company's success.