Darrell Brown Associate Professor of Accounting Portland State University Managerial Accounting and Control: MBA 512

Agenda Review BSC a bit Coast Guard example Group exercise—BSC Discuss strategic cost management

Designing Balanced Scorecards—Strategic Perspectives Developing a balanced scorecard addresses four strategic perspectives that enhance shareholder value creation through – learning and innovation that helps improve – internal processes needed to create – customer value that leads to – financial success

Designing Balanced Scorecards—Strategy Map Balanced scorecards are developed by designing strategy maps Strategy maps are designed from the top down by – determining financial goals – identifying how to create customer value – determining the operational means for achieving that value proposition – defining the type of climate and culture necessary to support these objectives

Designing Balanced Scorecards—Metrics After the strategy map has been developed, the organization must identify key performance indicator (KPI) measures for each goal The KPI provides a basis for monitoring goal performance The KPI must be a metric – not a process or program. KPIs are values that can be quantified and compared across periods of time

Group Exercise Build a top-level strategy map for the MBA+ using Stakeholder, Student/Employer, Internal, and Learning/Innovation perspectives. Our mission is to offer the region’s top MBA program for fulltime students and part-time working professionals who aspire to lead the success of the regional economy. Fulltime students will be increasingly attracted from outside the region, while part-time students will be professionals working in regional industries. The program develops expertise in technical business disciplines, an understanding of the role of innovation, a capacity for leadership, and knowledge of the regional economy. (working draft)

Operationalize this strategy map Strategy map should have goals Identify key performance indicators for each goal How will you measure each KPI? How will you report each KPI?

Finish Questions Comments Suggestions