1. BABOK® v3 Demystified Webinar Series
Chapter: Date & Time: Topic: Presenter:
Chennai IIBA® Chapter
26-May-16 | 6:30 to 7:30 PM IST
Balanced Scorecard Venkadesh Narayanan
BSME, MBA, CBAP®, PMI-PBA®, CPRE-FL, CBPP®, CSCP

2. Thought Provoking Words
“I often say that when you can measure what you are speaking about, and express it in numbers, you know something about it; but when you cannot measure it, when you cannot express it in numbers, your knowledge is of a meager and unsatisfactory kind. If you can not measure it, you can not improve it.”
- Lord Kelvin, British Scientist
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3. Article
Balanced Scorecard
1992
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4. Reference Book
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5. Balanced Scorecard Strategic Planning and Management Tool
Measure Organizational Performance
Beyond the traditional financial measures
Provides a balanced view of an enterprise by implementing the strategic plan as an active framework of objectives and performance measures
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6. Why BSC? How will the decisions you make today affect your business
tomorrow?
That’s the most important question to a manager can ask. But to answer it, they aften rely on financial metrics which can overemphasize the short-term. To win the long-term you need to take a more balanced view.
That’s why Harvard Business School Professor Robert S.kaplan and consultant David P.Norton developed the Balanced Scorecard
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7. Why BSC?
In the industrial age, most of the assets of a firm were in property, plant, and equipment and the financial accounting system performed an adequate job of valuing those assets.
In the informational age, much of the value of the firm is embedded in innovative processes, customer relationship, and human resources. The financial accounting system is not so good at valuing such assets.
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8. Vision and Strategy vs BSC
Top
Middle Bottom
Project
Department Enterprise
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9. Purpose of BSC Business Model Org. Structure Business Process
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10. Four Perspectives of BSC
The Scorecard
uses
four
perspectives
to measure
your
company‘s health:
Financial Perspective
Are you doing well by your stakeholders?
Customer Perspective
Do they like your products and services?
Internal Perspective
Can you efficiently deliver what your customers want?
Learning and Growth Perspective
Can you continue to improve and create value?
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11. Balanced Scorecard
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12. Underlying Premises of BSC
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13. Objectives, Measures, Targets, Initiatives
Postprandial glucose level: under 140 mg/dl
Fasting between 70 to 100 mg/dl
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14. Lagging & Leading Indicators
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15. Financial Perspective
It’s financial goals were to
Survive
Succeed
Prosper
For assessment, it used
Cash flow
Quarterly sales growth
Market share
Return-on-Investment
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16. Customer Perspective
Its customer goals were to develop innovative, tailored products,
to get them to market faster and to become a supplier of choice.
To measure success, managers used percentage of sales from new products, on-time delivery rates and popularity with key customers.
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17. Internal Perspective
Looking internally, the company prioritized goals like excellent
manufacturing, producing new designs, and introducing new products and again developed operational measures for each goal.
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18. Learning and Growth Perspective
Last, for its learning and growth goals, it decided to focus on
developing new products, rather than improving existing ones.
The company found that learning and innovation lead to better competencies and processes, which in turn boosted customer satisfaction and ultimately generated better stakeholder returns.
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19. Strategy Maps
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20. Strengths Facilitates holistic and balanced planning and thinking
Short-, medium-, and long-term goals can be harmonized into
programs with incremental success measures
Strategic, tactical, and operational teams are more easily aligned in their work
Encourages forward thinking and competitiveness
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21. Limitations
A lack of a clear strategy makes aligning the dimensions difficult
Can be seen as the single tool for strategic planning rather than
just one tool to be used in a suite of strategic planning tools
Can be misinterpreted as a replacement for strategic planning, execution, and measurement
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22. For more details about our course, please speak to Bharathi at
About Fhyzics
Fhyzics, a leader in Business Analysis Services and Training, is an Endorsed Education Provider [EEPTM] of International Institute of Business Analysis [IIBA®], Canada.
For more details about our course, please speak to Bharathi at
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23. Try our Online BA Course
150+ videos as in a classroom by Mr. Venkadesh Narayanan
Username:
Password: bacourse
For questions speak to Bharathi at
Compatible in PC, Tablet, iOS and Android devices
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24. Q & A ?
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25. Thank You Webinar Platform Compliments from
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Thank You
Webinar Platform
Compliments from
Fhyzics Business Consultants Pvt. Ltd.
Presented By
Mr. Venkadesh Narayanan, BSME, MBA, CBAP®, PMI-PBA®, CPRE-FL, CBPP® , CSCP
Principal Consultant
Former Indian Civil Servant [IRAS 2001 Batch]