1. Leadership Perspectives
Balanced Score Card

2. Balanced Score Card
The first stage in business transformation is to build an architecture for the change program, complete with objectives,
measures and a management process including executive accountabilities for the various initiatives launched.
The Balanced Scorecard is the conceptual structure Leadership Perspectives uses to build this architecture for change.

3. Prioritize initiatives
The Balanced Scorecard Drives Rapid Strategy Implementation 1
Translate the
Strategy Into
Operational
Terms 2 5
Align the
Organization to the
Strategy
Make Strategy a
Continual Process
Executive Team Alignment
Strategy Map
Balanced Scorecards
SCORECARD
STRATEGY
Corporate Role
Business Unit Synergies
Support Unit Synergies
Governance Process
Strategic Management
Analytics & Information Systems 3 4
Prioritize initiatives
and
Align Resources
Make Strategy
Everyone’s Job
Strategic initiatives are clearly identified
Investments are rationalized by the strategy
Link Budgets and Strategy
Strategic Awareness
Personal Scorecard
Balanced Paychecks / Link to Compensation

4. The Balanced Scorecard Provides a Framework to Translate the Vision and Strategy Into Operational Terms
The Vision
Measurement is the language that gives clarity to vague concepts.
Measurement is used to communicate, not to control.
Building the scorecard develops consensus and teamwork throughout the organization.
Financial Perspective
"If we succeed, how will we look to our shareholders?”
Profit-
ability
Growth
Share-
holder
Value
Customer Perspective
"To achieve my vision, how must we look to my customers?”
Cycle
Time
Quality
Service
Price/Cost
Internal Perspective
"To satisfy my customers, what business processes must we excel at?”
Cycle
Time
Quality
Productivity
Organization Learning
" To achieve our vision, how must our organization learn and improve?”
Market
Innovation
Continuous
Learning
Intellectual
Assets

5. We Use the Balanced Scorecard to Clarify Strategy and Translate it into Focused, Actionable Objectives
Financial Perspective
Return on Investment
Revenue Strategy
Productivity Strategy
Sources of Growth
Sources of Productivity
Customer Perspective
The Balanced Scorecard Is Based on an Understanding of the Cause and Effect Relationships on Which the Strategy Is Based
Value Proposition
Price
Quality
Time
Function
Image
Relation
Internal Process Perspective
Pathways to Performance
“Build the Brand”
“Make the Sale”
“Deliver the Product”
“Service Exceptionally”
Learning & Growth Perspective
Staff Awareness +
Goal Alignment +
Staff Competencies +
Technology Infrastructure

6. The Balanced Scorecard Is Used to Tell the Story of Your Strategy
The Revenue Growth Strategy
The Productivity Strategy
“Improve stability by broadening the sources of revenue from current customers”
“Improve operating efficiency by shifting customers to more cost-effective channels of distribution”
Improve Returns
Financial
Perspective
Improve Operating Efficiency
Broaden Revenue Mix
Example
Metro Bank Vision
Increase Customer Confidence in Our Financial Advice
Increase
Customer Satisfaction Through Superior Execution
“To be the best broad-based financial institution, a leader in our chosen markets”
Customer
Perspective
Internal
Perspective
Understand Customer Segments
Develop New Products
Cross-Sell the Product Line
Shift to Appropriate Channel
Minimize Problems
Provide Rapid Response
Increase
Employee Productivity
Learning Perspective
Develop Strategic Skills
Access to Strategic Information
Align Personal Goals

7. Long-Term Strategic Pathways Near-Term Tactical
This Begins With Developing the Key Strategic Themes or Pathways – These Form the Strategy Stairway
Case Example: Odessa Computers
Long-Term Strategic
5. Redesigning Our Customers’ Business
Pathways
4. Solution Delivery
3. Sales Excellence
2. Service Excellence
1. Leverage Resources
Near-Term Tactical

8. For Each Pathway, We Develop a Cause and Effect Model Across the Four Perspectives of the Balanced Scorecard
Case Example: Odessa Computers
5. Customer Partnering
4. Solution Delivery
3. Sales Excellence
2. Service Excellence
1. Leverage Resources
1. Financial
2. Customer
3. Internal
4. Learning/
Growth

9. Build a Cause and Effect Model for Each Pathway: An Example
Odessa Computers
Pathway 3: Sales Excellence
Financial
Shift Revenue Mix to Higher Margin Products/Services to Improve Margins
Customer
Solve High Value Business Problems
Qualify Opportunities
Process
Discover & Analyze Customer Needs
Deploy Business Unit Offerings
Put Right Sales Team Together
Learning /
Growth
Increase Consultative Selling Skills

10. A Strategy Map of Odessa Computers: The Sum of the Pathways
PROFITABLE GROWTH
Leverage Resources
Customer Partnering
Service Excellence
Sales Excellence
Solution Delivery
Financial
Leverage People and Financial Assets to Achieve Organizational Productivity
Grow Revenue Through Customer Retention
Shift Revenue Mix to Higher Margin Products/Services to Improve Margins
Grow Revenue Through Customer Extension/Expansion
Redefine Customers Businesses
Customer
Easy to Do Business With
Solve High Value Business Problems
My Partner for Creating High Value Solutions
Create Customer Competitive Advantage
Improve Customer Awareness
Qualify Opportunities
New Product Development/Service Opportunities
Internal
Perform Effective Delivery and Installation
Create Centers of Solution Expertise
Manage Inventory and Receivable Effectively
Provide World-Class Ongoing Support
Discover & Analyze
Customer Needs
Supply Knowledge Infrastructure (System and Tools)
Partners/ Alliances
Create Customer Driven Marketing Insights
Simplify Processes and Enhance Systems
Effective Project Management
Deploy Business Unit Offerings
Localize Business Unit Offerings
Capture Product/Customer/ Industry Knowledge
Learning & Innovation
Create Success-Oriented Culture
Shift Resources to High Potential Revenue Generating Roles
Deploy Services Resources to Improve Productivity
Put Right Sales Team Together
Dynamic Deployment of Cross- Functional Resources
Just-in-Time Resource Deployment
Manage Resources
Increase Leadership Skills
Share Best Practices
Foster Sales/ Marketing Alignment
New Product Development Insights/ Raw Creativity
Build Skills
Increase Consultative Selling Skills
Clarify and Communicate Roles & Responsibilities
Attract, Retain, and Motivate Associates

11. From Strategy Map to Implementation: Targets and the Business Case Measures
ACCELERATE PROFITABLE GROWTH
We will contribute X% increase in GM – and $XXX in bottom line growth by 1998
Shift Revenue Mix to Higher Margin Products/Services F
Gross Margin %
1995 impact of $XX
1996 impact of $XX
1997 impact of $XX
1998 impact of $XX
Solve High Value Business Problems C
Improve Customer Awareness]
Qualify Opportunities
% Opportunities Through Bid Review Where PS Risk Assessment Performed
CSM Relationship Survey - Overall Solutions Provided to you by Odessa I
Discover and Analyze Customer Needs
Total HV offering $ in the Funnel (Next 12 Months)
Deploy Business Unit Offerings
Opportunities by Key Marketing Programs - $/#
L&G
% Associates in Customer-Facing HV Positions
Put Right Sales Team Together
Manage Resources
Associates Certified within Key Job Families
Leadership Index
Increase Consultative Selling Skills
Build/Enhance
Set of Skills/
Competencies
Clear Roles & Accountabilities
Number of Associates with Objectives on File
Sales and Pre-Sales Open Position Days
Associate Turnover
Associate Satisfaction Survey - overall question
Attract, Retain, and Motivate Outstanding Associates

12. From Strategy Map to Implementation: The Alignment of Initiatives and Resources
Strategic Pathway
Existing Initiatives
Initiatives
Description
Sponsor
Shift Revenue Mix to Higher Margin Products/Services to Improve Margins
Financial
Paper supplies Integration
Integrate media products into our computer and self-service offerings
Manufacturing -Jim S.
Price Realization-II
(Outside Study): Localize Americas programs on a regional basis (e.g., The Sales Process, Marketing Programs for Canada, Latin America and US Area).
Corporate Marketing - Alice L.
Customer
Solve High Value Business Problems
Lead with Service Bundles
Increasing PS and CS service content and enable all 550 salespeople to sell services.
Global Sales - Connie C.
Internal
Qualify Opportunities
High Availability Transaction Processing
Developing horizontal offerings across industries.
Corporate Marketing - Bruce G.
Discover and Analyze Customer Needs
Global Realization Process (GRP)
Define and deploy the GRP in the Americas Region
Distribution - Eric S.
Deploy Business Unit Offerings
Learning
Sustain/Execute The Sales Process(TSP)
Lg Bus. Sales - Barbara R.
Put Right Sales Team Together
Increase Consultative Selling Skills
Certification Program
Expand to Professional Services and other sales industries.
HR - Allen V.
Clarify and Communicate Roles & Responsibilities
Consultative Selling
Building consultative selling skills within our sales and services organizations.
Training - Bryan D.
Attract, Retain, and Motivate Associates

13. Balanced Scorecard Architecture
Aligning the Managing Process and Balanced Scorecard Architecture
Balanced Scorecard Architecture
Managing Process
Strategic Pathways
Clear roles and responsibilities in managing initiatives
Context For
Targets and Measures
Executive Meetings
Supporting Initiatives and
Implementation Plan
Balanced Scorecard provides a key communication tool to the entire organization