BALANCED

SCORECARD

What is a Balanced
Scorecard ?
A Measurement System
A Management System
A Management Philosophy

BALANCED SCORECARD
The balanced scorecard translates an

organizations mission and strategy

into a set of performance measures
that provides the framework for
implementing the strategy. It is called
balanced
scorecard
because
it
balances the use of financial and nonfinancial performance measures to
evaluate short-run and long-run
performance in a single report.

Translating Vision and

Strategy: Four
Perspectives
1.

Financial perspectives (How do we

look to share holders ?)
2.
Customer perspectives (How do
customer see us ?)
3. Internal Business Process (What we
excel at ?)
4.
Learning and growth perspectives
(Can we continue to improve create
value ?)

Cause & Effect

Relationship

Financial Perspectives
Share holders value

Objectives : 1)

2) Growth Revenue
Goals

Measures

1. Survive

Cash flow

2. Succeed

Qtrly. Sales growth

3. Prosper

Increased market share and

ROE

Customer Perspective
more customer

Objectives : 1) Acquire
2)

Leader in Pricing
Goals

Measures

1. New Product

% of sales from new product

2. Responsive Supply

On time delivery

3. Customer Partnership

Co-operative efforts

Learning and Growth

Efficiency

Objectives : 1) Improve opr.

2)

Reduce non-core activities

Goals

Measures

1. Technology Capability

manufacturing

2. Manufacturing excellence

Cycle time, unit cost

3. New product introduction

Actual introduction schudle

Vs. Plane

Learning and Growth

Training

Objectives : 1)
2)

Realign origination.
Goals

Measures

1. Technology leadership

Time to develop e next

generation

2. Manufacturing product
focus
3. Time to market

Product focus
New product introduction and
compt.

Thank You