BALANCE SCORE CARD

A practical approach

A D IT I N A R A Y A N A N
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A L B E R T R O H A N S IL A S
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BH A R A G AVA B D 08PG 086
G A R IM A C H O P R A 08PG 087
R A K SH A N EO G I 08PG 104
G R O U P 1 0 / JO H N T. C H A M B E R S
BALANCE SCORE CARD
COMPANIES IN DISCUSSION TODAY
1. TATA CONSULTANCY (IT/Service sector)
2. GODREJ & BOYCE( Appliances)

3. WALMART (Retail industry)

Tata consultancy
 Tata Group, one of India’s largest industrial
conglomerates and most respected brands.
 Leading IT/consultancy company
 Offers a consulting-led, integrated portfolio of IT
and IT-enabled services delivered through its
unique Global Network Delivery Model™,
recognized as the benchmark of excellence in
software development.
 Over 143,000 of the world's best trained IT
consultants in 42 countries.
 Revenue of $6.0 billion (fiscal year ending 31
March, 2009).

Balance score card of TCS
BSC SHEET
Parameters History Target Target Remar April May
(Descript ks
2008-09 ion) Act Tar Act Tar

Financial Profitablility
Perspective
Revenue
Customer Customer
Perspective Satisfaction
On-time Delivery
Internal Process Quality
Perspective
Onshore-offshore
ratio
Reduction of
Application costs
Knowledge and Training
Growth
Perspective Research and
Development
GODREJ & BOYCE
 Founded in 1897, Godrej & Boyce Mfg. Co. is one of the largest
privately-held diversified industrial corporations in India, with
combined sales of Rs. 15.8 Billion (US$ 350 million).

 The Appliance Division of Godrej & Boyce has a 21% share of the
maturing appliances market in India.

 Pioneered Godrej & Boyce’s first Balanced Scorecard initiative in
1998

 The initiative was taken to maintain a competitive edge in the
mature appliance market

 It used the Microsoft Office Business Scorecards Accelerator and
the expertise of Capgemini to develop a solutions
CORE CAPABILITIES
 Using the Microsoft Office Business Scorecards
Accelerator and the expertise of Capgemini,
Godrej & Boyce was able to develop a solution
that offered:

 Powerful analytic tools and graphical data
displays.
 Automation of data entry, collection, and
updates.
 Web-based collaboration and instantaneous
sharing of data.
 Fast, accurate mapping of the strategic themes,
BENEFITS
 More Efficient Strategy Development
Process

 Helpful in operational control

 Fast, Powerful Analysis and Reporting

 Used for strategic management

BUSINESS VALUE
 Increased knowledge worker’s productivity by 30-

40% in the first year

 Increased material resources productivity by 20%

 Improved management of working capital

 More effective strategy development and adaptive

execution

 WALMART
 Founded in 1962, first Wal-Mart discount
store in Rogers, Ark.
 Incorporated as Wal-Mart Stores, Inc. on
Oct. 31, 1969
 International company in 1991,first
Sam's Club near Mexico City.
 Ranked first among retailers in Fortune
Magazine’s 2009 Most Admired
Companies survey.
 FINANCIAL

•Profitab
ility
•Revenue

CUSTOMER INTERNAL BUSINESS PROCESS

•Use of
technology
•Cost
Leadersh VISION •Process
ip Innovativen
ess
•Operati
•Excellent
onal
Logistics
Excellenc
e

•Continuou
s service
quality
monitoring
•Upgradatio
n of
Employee
LEARNING &skills
GROWTH
CONCLUSION
 1.Performance measures tend to exhaust themselves as
strategies succeed. Ex: GE ( 1950s-60s) used elaborate
measures like operational, market and work management
measures. In 1970s Jack Welch introduced the measure of firms
being either first or second in profit or growth. In 1990s GE
shifted to 360 degree feedback and in later 1990s they are
using quality control (black belt managers) as a measure.

2. Smaller firms , less confident may stick to spent metrics and

consequently fail to make strategic choices and focus on a
limited set of objectives.

3. Firms with lowest correlations among Performance measures

have highest rates of business growth.

4. Combined forces of learning and selection produce better

performance, hence lower variance and therefore little
consequence for the game.