Balance Scorecard

What is the Balanced Scorecard (BSC)?

The scorecard emerged in response to organizations gap between short-term financial activities and long-term strategy. It is not a replacement for budgeting but merely a complement in the sense allows businesses to set performance benchmarks in non-financial areas. To ensure that both short-term and long-term goals are correlated, the scorecard relies on four processes: translating the vision, communicating and linking, business planning and feedback and learning.

Balanced Scorecard Focus

Traditional financial reports look backward Reflect only the past: spending incurred and revenues earned Do not measure creation or destruction of future economic value The Balanced Scorecard identifies the factors that create long-term economic value in an organization, for example: Customer Focus: satisfy, retain and acquire customers in targeted segments

Business Processes: deliver the value proposition to targeted customers

innovative products and services high-quality, flexible, and responsive operating processes excellent post-sales support

Organizational Learning & Growth:

develop skilled, motivated employees; provide access to strategic information align individuals and teams to business unit objectives
.

Customers

Processes

People

Translating Vision and Strategy: Four Perspectives

Arriving at the Scorecard

Choosing appropriate Metrics Defining Targets

Measuring Performance Difference between targeted and actual

Applying the Indexing System

Metrices
Choosing appropriate Metrics: Based upon criteria's or filters strong linkage to the HR Divisions Strategic Priorities, quality data available, and strong linkage to the corresponding BSC perspective. Acknowledgement that these metrics would need change. Narrowed from 200 to 80 metrics

Indexing System
Indexing System An index takes any value or unit and expresses it in terms of 100. Anything over 100% is better than expected, under 100% worse than expected. Illustration Target EPS =160 Actual EPS=200 Metric Score=(200/160)*100 =125

Financial Prospective
Main Questions Addressed: How is the greatest Value being added at the smartest Cost? How is the Financial Risk being managed? What is the appropriate trade-off between Risk and Returns being Managed?

Customer Perspective

Main Questions addressed: What is the overall quality of : customer responsiveness, reliability and problem resolution? How user-friendly and accessible are Daburs tools, products and processes? How satisfied are Daburs clients with their business partnerships?

Operations Perspective

Main Questions addressed: How efficient, effective, accurate, timely, and relevant are Daburs key processes? How effectively does Dabur Leverage Technology to improve business processes and Customer Interactions?

Employee Perspective

Key Questions Addressed How is Dabur developing its talent and diversity needed to be successful now and in the future? How is the Dabur developing leadership bench strength to be successful now and in the future? How is Dabur building workplace that results in employee commitment and retention?