Balance Score Card Presentation - Final
Balance Score Card Presentation - Final
Balance Score Card Presentation - Final
as a Strategic Management
System
Introducing The Balanced Scorecard
• Intangible assets has become far more important than physical assets
needed for future growth
• Balanced scorecard complements financial measures to measure
performance
– Customers
– Internal Business process
– Learning and growth
• Emphasis of most companies is on short-term financial measures leaves a
gap between the development of a strategy and its implementation
• Balanced scorecard links a company’s long-term strategy with its short-term
actions with four new management processes
• The Processes :
– Translating the vision
– Communicating and linking
– Business planning
– Feedback and learning
Balanced Scorecard
and
Statements
must be expressed as
an integrated
set of objectives and
measures which are
long-term drivers of
success
Organisation Vision
monitor performance
Internal Perspective
“To satisfy our • Cycle Time
customers, what
management • Productivity
processes must we • Cost
excel at?”
Organization Learning
“To achieve our • Market Innovation
vision, how must • Continuous
our organisation
learn and Learning
improve?” • Intellectual Assets
We shall identify balanced set of THRUST AREAS
Financial Yesterday
Customer Today
Business Process
X Matrix Deployment
Mission:
Hire
experienced
Managers
Balanced Scorecard example
Vision
Category Element Measures Target
• From SBU level score cards, department level scorecards are formed
Strategy Map
• Once department level Score cards are formed,
Balanced Scorecard individual level KRA’s within the department has to be
X Matrix deployment formed
• X matrix is a tool that helps in creating KRA for each
individual from the score card
• Structured approach for deployment of goals,
objectives…. With quantification
• Creates focus by designing “what” into “how”, “who” &
“how much”
• Leads to data based management
Identify KFAs
● Discuss and arrive at “Measures” & “Targets” for each of the KRA
Key Focus Areas (KFAs)
Vision Brainstorm for creating right focus in the unit to achieve the desired
thrust
Mission
Strategy Map
Target
Increase Asset productivity
EVA
Optimise Work In Process Inventory
Optimise Finished Goods Inventory
Improve EBITA
Revenue from Select Customers (Europe/ Non US)
Revenue from Existing Non-Select Customers
Revenue from New Non-Select Customers
‘X’ Matrix - Thrust Areas
Vision
Strategy Map
X Matrix deployment
Optimise FG Inventory
Thrust Area
Achieve EVA Target
Revenue from Select Customers
Optimise Finished Goods Inventory
Receivables cycle for Non Select Market
KFA
Area
Reduce delays
Thrust
KRA
Finalised ‘X’ Matrix
Linewise inventory
Receivables targets
Customerwise NPDs
Revenue customer wise
Tgt..
OTIF 95%
Receivables no of days 60
2 crs
value
No of NPDs for
14
key customers
Total revenue from
10 crs
select players
WHO
Prodn planning
MFG.
Logistics
Marketing
Finance