1. Balanced Scorecard
Lara Jelenc, PhD
June, 2016

2. Opatija
Dubrovnik- Star Wars: Episode VII

3. University of Rijeka Public university
Based in roots of Jesuit gymnasium
University established 1973
11 Faculties, students
Rijeka- city of inhabitants
Rijeka European Capital of Culture

5. Balanced scorecard- challenge defined…
90 % of the strategies are never getting implemented
Wall street dominance view of finances
Long time for feedback
Health/balance/immune system of the companies (story of young CEOs)
Summer challenge/ immune system

7. Balanced Scorecard
Kaplan, Norton, 1992 „The Blanced Scorecard- Measures that Drive Performance” Harvard Business Review

8. BSC Management system translating strategy into practice
Used in profit, non-profit and public institutions
Balanced approach of four perspectives
Faster feedback- correction
Direct link goal-measure-action-results

9. BSC- Four perspectives
Financial perspective
Customer/stakeholder perspective
Internal business process perspective
Innovation and knowledge perspective/ organizational capacity

11. BSC Procedure Create main goal
Create objective within each perspective
Create measure
Create targets- limits (upper-lower)
Create initiative- action plans (delegate the goal)

14. For each perspective
Objective Areas—Major objectives underlying the success of the business (e.g., profitable growth).
Measures—The observable parameters used to measure progress toward reaching a given objective (e.g., growth in net margin).
Targets—Specific values targeted for individual measures (e.g., +2% growth in customer satisfaction index).
Initiatives—Programs set up in order to meet the objective (e.g., “we will reduce wait times by 10%”).

15. Financial objective- measure
Growth stage - goal is growth, such as revenue growth rate
Sustain stage - goal is profitability, such ROE, ROCE, and EVA
Harvest stage - goal is cash flow and reduction in capital requirements

17. Customer objective- measure
Customers must receive their deliveries in full and on time
What % of monthly deliveries reached desired destination in full and on time
New products
% of sales from new products
Responsive supply
Ontime delivery
To be preferred supplier
Share of key accounts
Customer partnerships
Number of cooperative efforts

18. Process objective-measure
Manufacturing excellence
Cycle time, yield
Increase design productivity
Engineering efficiency
Reduce product launch delays
Actual launch date vs. plan

19. Innovation /learning/ growth
Manufacturing learning
Time to new process maturity
Product focus
% of products representing 80% of sales
Time to market
Time compared to that of competitors
Improving employees ’ service quality
Number of people educated in English

20. Matching….

21. Cause-effect (goals-measures)

25. http://www. thepalladiumgroup
Private/ business issues

26. Upper limit
Middle upper limit
Middle low limit
Lower limit

27. + /-
+ Cause-effect relations More effective implementation - Complex way of implementation in the system Easy overload with meaningless measures

28. Sources
Balancedscorecard institute
Software: stratex, iStrategi, QuickStore Performance Information Center
Implementation examples- JGL company Croatia