1. KEC Dhapakhel Lalitpur
BALANCED SCORECARD
KEC
Dhapakhel
Lalitpur

2. BALANCED SCORECARD
While working, in general, trend is towards focusing on Today only.
BSC is a strategy map for balancing Today and Tomorrow.
Integrates the immediate & future: Set targets, measure and reward. At same time, orients one towards the future desired state of affairs, as set by Mgt.
Setting targets involves all concerned. Foster team spirit and group motivation.

3. Mission-Vision-Strategy
BALANCED SCORECARD
A Gap Exists Between
Mission-Vision-Strategy
and
Employees’ Everyday Actions
The Balanced Scorecard Describes How the Strategy will be Executed

4. BALANCED SCORECARD
The Balanced Scorecard is a strategic planning and management system used to align business activities to the vision and strategy of the organization by monitoring performance against strategic goals. 
Balanced Scorecard concept was first published in 1992 by Kaplan and Norton, a book followed in 1996.
Traditional performance measurement that only focus on external accounting data are obsolete.
The approach is to provide 'balance' to the financial perspective.

5. BALANCED SCORECARD
The balanced scorecard (BSC) is a strategic planning and management system that organizations use to:
Communicate what they are trying to accomplish
Align the day-to-day work that everyone is doing with strategy
Prioritize projects, products, and services
Measure and monitor progress towards strategic targets

6. 4 Perspectives in Balance Scorecard
The BSC translates mission and strategy into four dimensions:-
Financial: "How do we look to our shareholders? ”
Customer: "How do we become our customers’ most valued supplier?”
Internal Process: “What processes must we excel at to achieve our financial and customer objectives?”
Innovation and Growth: “How can we continue to improve and create value with employee capabilities, systems, and structure?”

7. A COMPANY’S BALANCED SCORECARD
FINANCIAL PERSPECTIVE
IMPROVE RETURNS
INCREASE SALES TURNOVER IMPROVE ASSETS UTILIZATION
CAPTURE NEW MARKET. EXTEND PRODUCT RANGE
REDUCE STOCK LEVELS. IMPROVE STOCK CONTROL. REDUCE LEAD TIMES
INTERNAL PROCESS PERSPECTIVE
CUSTOMER PERSPECTIVE
DEVELOP NEW PRODUCTS
MODIFY EXISTING PRODUCTS
IDEAS FROM EMPLOYEES
FEEDBACK FROM CUSTOMERS
MARKET RESEARCH
LEARNING & GROWTH PERSPECTIVE

8. Organization from 4-Perspectives

9. Strategy Mapping
One of the most powerful elements in the BSC methodology is the use of strategy mapping to visualize and communicate how value is created by the organization. A strategy map is a simple graphic that shows a logical, cause-and-effect connection between strategic objectives (shown as ovals on the map). Generally speaking, improving performance in the objectives found in the Organizational Capacity perspective (the bottom row) enables the organization to improve its Internal Process perspective (the next row up), which, in turn, enables the organization to create desirable results in the Customer and Financial perspectives (the top two rows).

10. CAUSE & EFFECT RELATIONSHIPS & BALANCED SCORECARD
STRATEGY MAPS- A CHAIN OF CAUSE AND EFFECT LOGIC THAT CONNECTS THE DESIRED OUTCOMES WITH THE DRIVERS
EFFECT
REVENUE GROWTH
FINANCIAL
VALUE PROPOSITION
CUSTOMER
LOYAL CUSTOMERS
CAUSE
QUALITY PRODUCT
IF- THEN
WHAT ?
QUALITY PRODUCTION
QUALITY MATERIALS
INTERNAL
CAPABILITIES
LEARNING & GROWTH
SKILLED WORKFORCE + TECHNOLOGY
HOW ?
ENABLERS

11. ALIGNING CUSTOMER VALUE MANAGEMENT WITH BALANCED SCORECARD
Financial
Results
Perspective
Value
Proposition
Customer
Capabilities
Internal Process
Enablers
Learning & Growth
Process
Enabling Infrastructure
Systems/skills/assets/IT

12. Thank you
All the Best