1. From Vision to Action Plan The Balanced Scorecard Approach

2. What is a Balanced Scorecard?
“A Balanced Scorecard is a framework that focuses on shareholder, customer, internal and learning requirements of a business in order to create a system of linked objectives, measures, targets and initiatives which collectively describe the strategy of an organization and how that strategy can be achieved.”

3. What is a BSC?
BSC is not a
dash-board of financial and non-financial indicators.
new/re-hashed measurement system.
BSC is a tool to convert a strategy into action.

4. FINANCIAL PERSPECTIVE
Balanced Scorecard - Concept
FINANCIAL PERSPECTIVE
To succeed financially, how should we appear to our shareholders (Corporate Management)?
CUSTOMER PERSPECTIVE (EXT.)
BUSINESS PROCESS PERSPECTIVE (INT.)
To achieve our mission, how
should we appear to our customers?
To satisfy our shareholders & customers, what business processes must we excel at?
RENEWAL, LEARNING, GROWTH PERSPECTIVE
To achieve our mission, how will we sustain our ability to change & improve?

5. Balanced Scorecard - Concept
Vision &
Strategy

6. BSC & Strategy? -Hope is not a strategy
A strategy is a set of hypotheses about cause and effect.
Any system such as BSC should tell the story of the BU’s strategy.
It should make explicit the sequence of hypotheses about the cause-and-effect relationships between various action the BU proposes to take.
Every element selected for a BSC should be an element in a chain of cause & effect relationship that communicates the meaning of the BU’s strategy.
-Hope is not a strategy

7. Financial
ROCE
Customer Loyalty
Customer
On-time Delivery
Internal/ Business Process
Process Quality
Process Cycle Time
Learning and Growth
Employee Skills

8. Illustrative Strategy Map - Software Services Company
Become a leading
software solutions
company by 2003
Financial
Reduce resource costs
and improve margins F5 F2
Improve onsite
project profitability F3 F4
Develop new customer /
market revenues
Develop offshore revenues
Customer C3 C1
SoftCo understands my
specific needs and
provides appropriate
services C2
SoftCo provides
solutions globally
Softco delivers on
time & provides high
quality services
Internal I5 I1 I2
Expand product/
services portfolio
& develop a roadmap I4 I3
Develop lead
generation
capability
Optimize business
processes
Implement resource
utilization processes
Mange customer
relationship
Learning & Growth L1 L2
Clearly define
Organization Structure
Roles & responsibilities
Improve manpower quality by
training, redundancy and
recruitment L3
Implement performance
management system

9. Financial
Customer
Internal
Learning & Growth

10. BSC Organisation Vision Mission 4 Perspectives Themes Objectives
Initiatives
Initiatives are the lifeline of any organization, as they are born out of clearly spelt out strategic needs. We can not take any initiative in isolation to organizational or Business Goals as the very purpose is to enable DESIRED PERFORMANCE LEVELS of an organization through them.
Here we have made an attempt to visit what it takes to make every initiative a success and how VisionCompass fits the bill in this space.
The five areas that we will touch upon are –
What are Key Initiatives and their linkage to Business Goals
What mandates that organizations take up Initiatives
Look at how VisionCompass fits the requirements bill
Finally we will look at a live demo of VisionCompass, built on a real life Case Study
Measures
Feedback & Learning

11. Echo Engineering – Linking Measurements from Four Perspectives
Accounts Receivable
Return on Capital employed
FINANCIAL
Operating expenses
Customer Satisfaction
CUSTOMER
INTERNAL BUSINESS PROCESS
rework
Employees’ Suggestions
LEARNING AND GROWTH
Employees’ Morale
Echo Engineering – Linking Measurements from Four Perspectives

12. BSC Components Objective Measure Target Initiatives
Statement of what strategy must achieve and what is critical to its success
How success in achieving the strategy will be measured and tracked
The level of performance or rate of improvement needed
Key action programs required to achieve objectives
Objective
Measure
Target
Initiatives
Broaden revenue mix
Revenue mix
10% Product X
40% Product Y
50% Product Z
Financial
Increase customer satisfaction
Customer retention
95%
Frequent Buyers Club
Initiatives are the lifeline of any organization, as they are born out of clearly spelt out strategic needs. We can not take any initiative in isolation to organizational or Business Goals as the very purpose is to enable DESIRED PERFORMANCE LEVELS of an organization through them.
Here we have made an attempt to visit what it takes to make every initiative a success and how VisionCompass fits the bill in this space.
The five areas that we will touch upon are –
What are Key Initiatives and their linkage to Business Goals
What mandates that organizations take up Initiatives
Look at how VisionCompass fits the requirements bill
Finally we will look at a live demo of VisionCompass, built on a real life Case Study
Customer
Customer Mailing
Segmentation
Cross-sell our products
% Revenue from new products % %
Internal
Develop strategic skills
Skill coverage
90%
Learning & Growth
Product Training

13. Business Execution – 1 – Identify Initiatives – 2 – Screen Initiatives
Development Projects, Activities, etc.
Quality Projects, Activities, etc.
– 1 –
Identify Initiatives
Corporate Projects, Activities, etc.
Marketing Projects, Activities, etc.
Financial Perspective
Initiatives are the lifeline of any organization, as they are born out of clearly spelt out strategic needs. We can not take any initiative in isolation to organizational or Business Goals as the very purpose is to enable DESIRED PERFORMANCE LEVELS of an organization through them.
Here we have made an attempt to visit what it takes to make every initiative a success and how VisionCompass fits the bill in this space.
The five areas that we will touch upon are –
What are Key Initiatives and their linkage to Business Goals
What mandates that organizations take up Initiatives
Look at how VisionCompass fits the requirements bill
Finally we will look at a live demo of VisionCompass, built on a real life Case Study
Customer Perspective
– 2 –
Screen Initiatives
Internal Perspective
Organization Learning
Output: Short List of Strategically Aligned Initiatives

14. A Corporate Scorecard defines overall strategic priorities and context
Strategic Alignment
Step 1.
A Corporate Scorecard defines overall strategic priorities and context
Step 2.
Each SBU develops a long-range plan and BSC consistent with the corporate strategic agenda
Corporate / Group
SBU A
SBU B
SBU C
Support Functions
Step 3.
Each Support Unit develops a scorecard to support the internal customers
Initiatives are the lifeline of any organization, as they are born out of clearly spelt out strategic needs. We can not take any initiative in isolation to organizational or Business Goals as the very purpose is to enable DESIRED PERFORMANCE LEVELS of an organization through them.
Here we have made an attempt to visit what it takes to make every initiative a success and how VisionCompass fits the bill in this space.
The five areas that we will touch upon are –
What are Key Initiatives and their linkage to Business Goals
What mandates that organizations take up Initiatives
Look at how VisionCompass fits the requirements bill
Finally we will look at a live demo of VisionCompass, built on a real life Case Study
Step 4.
Departments, teams and individuals develop scorecards consistent with their organization’s strategy
Teams and Individuals

15. Digital Scorecard MC Sales/ Delivery HR CIO Quality
Technology Excellence
Introduction of new Solutions/Services
World Class Products
TECHNOLOGY
Best in Class Organisation
Business & Service /Product delivery Excellence
Quality Leadership
PROCESSES
Top 3 preferred employer
Learning Organisation
Digital way
PEOPLE
Trusted Partner
Reliable & Cost effective Solutions/ services
Customer acquisition/expansion
CUSTOMER
Lead the Industry rate of growth
No 1 in profit in Industry
Global Thrust
BUSINESS
MISSION
DIMENSION MC
Sales/ Delivery HR
CIO
Quality

16. TECHNOLOGY BUSINESS PROCESSES PEOPLE CUSTOMER OVERALL MEASURES/GOALS
-% of business through new services
- patent applications filed
Tech up gradation training
-% increase in certifications
-% increase in Bid/Win ratio
Incubate & develop new services based on emerging technologies
Develop Solutions based on Standards/Tools/Frameworks/Methodologies
Leadership in Technology Forums/Consortiums
Strategic Alliances with leading Platform Vendors
Product Road Maps for Product success
Technology Excellence
Introduction of new Solutions/Services
World Class Products
TECHNOLOGY
Overall Revenue
PAT
Offshore
Gross Margins
Products & TSCC
Minimum- Verticles to be developed
Greater offshore delivery/annuity business
Ensure success of TSCC & Products
Offset pricing pressures through increased productivity
Develop Verticles
Lead the Industry rate of growth
No 1 in profit in Industry
Global Thrust
BUSINESS
New all around quality drive through `Service Excellence’
External Accreditations
Automation/tools for enhanced effectiveness
Year of the Employee
Capability Development/Certifications
Employee creativity/innovation & productivity
Values as a way of life
Increased non parent business
Penetrate existing accounts
Re-energise Office of the Customer
Digital API – 100% of the identified units
CMM Level 5/PCMM
Process Improvement Plan Implementation
Institutionalized use of tools and technologies
Best in Class Organisation
Business & Service /Product delivery Excellence
Quality Leadership
PROCESSES
Digitell Scores
Retention Rate
Utilisation
Focus on employee creativity/innovation
Top 3 preferred employer
Learning Organisation
Digital way
PEOPLE
Customer Satisfaction Scores
Existing Customer Growth
Non-HP
Trusted Partner
Reliable & Cost effective Solutions/ services
Customer acquisition/expansion
CUSTOMER
OVERALL
MEASURES/GOALS
STRATEGIC OBJECTIVES
( 2002 – 03 )
MISSION
DIMENSION

17. OVERALL MEASURES/GOALS
HR….
e HR – PMS, Leave, ESOP, T&D
TECHNOLOGY
PCMM Level 5
Inter-linkages with other Quality initiatives
Reporting Matrix
PROCESSES
Employee Satisfaction
Digital way Initiatives
Training & Development
PEOPLE
HR Services – Responsiveness – SLAs
Communication Matrix
Employee welfare initiatives
CUSTOMER
Non Performers – Identification & Management
Utilisation
Retention
Referral Program
Scalability
Internal training & learning initiatives
BUSINESS
OVERALL MEASURES/GOALS
DIMENSION

18. Execution Calendar TARGET DATES RESPONSIBILITY ACTIVITIES All Managers
20th June
Goal setting – entire organisation
Task Force
Jan/Feb
Consolidating feedback and seeking inputs
Board/MC
April/May
Final Evaluation/Feedback
MC/SMT/Task Force
30th June
30th September
31st December
Review for MC/SMT
Performance Reviews
SMT
1st June
SMT Scorecards
May/June
15th May
25th April
TARGET DATES
MC/Task Force
Close & Initiate Next Year process
MC Team
MC Scorecard - Individually
Blue Print Finalisation
RESPONSIBILITY
ACTIVITIES

19. Different Types of Measures (Targets)
Outcome Measures or Lag Indicators
Performance Drivers or Lead indicators

20. Balanced Scorecard at National Insurance