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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
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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 Insert Footer
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Article Balanced Scorecard 1992 Insert Footer
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Reference Book Insert Footer
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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 Insert Footer
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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 Insert Footer
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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. Insert Footer
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Vision and Strategy vs BSC
Top Middle Bottom Project Department Enterprise Insert Footer
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Purpose of BSC Business Model Org. Structure Business Process
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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? Insert Footer
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Balanced Scorecard Insert Footer
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Underlying Premises of BSC
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Objectives, Measures, Targets, Initiatives
Postprandial glucose level: under 140 mg/dl Fasting between 70 to 100 mg/dl Insert Footer
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Lagging & Leading Indicators
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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 Insert Footer
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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. Insert Footer
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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. Insert Footer
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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. Insert Footer
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Strategy Maps Insert Footer
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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 Insert Footer
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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 Insert Footer
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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 Insert Footer
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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 Insert Footer
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Q & A ? Insert Footer
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Thank You Webinar Platform Compliments from
Insert Footer 25 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]
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