1. WELCOME

2. BALANCED SCORECARD A NEW MEASURE OF ENHANCING ENTERPRISE EFFECTIVENESS Prof. Ranjan K. Bal Former President, Indian Accounting Association

3. INTRODUCTION  HBR: One of the most influential management ideas of the past 75 years.  New tool for measurement of overall / holistic corporate performance.  Shift from lopsided approach to a balanced one  Translate companies vision and strategy into tangible objectives and measures.  Enhances Enterprise Effectiveness

4. KPMG study  On “Measuring Performance of the Organizations of the Future” FINDING: “Over-reliance on summary financial performance measures (Viz. ROI) was hindering an organization’s abilities to create future economic value.”

5. BSC Robert Kaplan & David Norton 1992 - HBR : “The Balanced Scorecard : Measures that Drive Performance” 1996 – BOOK : “ The Balanced Scorecard :Translating Strategy into Action”

6. BSC  Balances:Financial and Non-financial performance measures  Evaluates: Short-run and long-run performance in a single report.

7. APPLICATION OF BSC Many Fortune 500 Companies More than 50 Indian Companies Tata Group Companies Dr. Reddy’s Lab Bharati Tele RPG Godrej

8. PERSPECTIVE OF BSC VISION & STRATEGY INTERNAL BUSINESS PROCESS CUSTOMER FINANCIAL LEARNING & GROWTH

9. BSC Enables an Organization to answer the following questions: How should it appear to its shareholders ? How should it appear to its customers ? What business processes must it excel at ? How will it sustain its ability to change & improve ?

10. FINANCIAL PERSPECTIVE REVENUE / INCOME GROWTH COST MANAGEMENT ASSET UTILISATION ROI

11. CUSTOMER PERSPECTIVE CUSTOMER RETENTION CUSTOMER ACQUISITION CUSTOMER SATISFACTION MARKET SHARE

12. Customer is the only valid reason for the existence of a business. Peter F. Drucker

13. INTERNAL BUSINESS PROCESS PERSPECTIVES VALUE CHAIN: R & D DESIGN PROD. MARKETING DISTRIBUTION CUSTOMER SERVICE

14. Process Innovation Product Reengineering: Quality Operational Efficiency - IT HUL & INFOSYS “Reengineering is the fundamental rethinking and redesign of business processes & products.”

15. Marketing and innovation should come before worries about finances. Peter F. Drucker

16. LEARNING & GROWTH PERSPECTIVE EMPLOYEE CAPABILITIES INFORMATION SYSTEM CAPABILITIES MOTIVATION, EMPOWERMENT

17. LEARNING & GROWTH Arun Moira: Member, Planning Commission, GOI To be a leader: - Continuous Learning - Bigger Dream Stephen Covey:Sharpening the Saw Ajim Premji on JRD: JRD was a life-long learner. “ Knowledge is being doubled in every 18 months.”

18. Dedicated employees are key to the success of any corporation. Peter F. Drucker

19. IMPLEMENTING A BSC PROCESS Identify Vision Identify Strategies Identify Perspectives Identify Measures Create Action Plan Evaluate Follow Up

20. ENVIRONMENT OF SAIL Steel industry witnessing a boom Increased steel consumption: 30 Kg Vs. 144 Kg High bargaining power of buyers Bargaining power of suppliers Threat of new entrants & competition Threat of substitutes

21. SAIL’s CORPORATE PLAN 2012 To continue in the business of steel & steel related activities To enhance market share in growth segments To improve profits by cost reduction & high value added products To achieve excellence in quality To secure availability of key raw materials To build customer centric processes,systems & procedures

22. SAIL’s CORPORATE PLAN: Comments Shows strategic goals, but inter-relationship is absent Comprehensive, but lacks focus Lacks focus on Product Profitability No focus on Operational Excellence No focus on Attracting & Retaining HR To develop a Culture of Accountability & Appreciation

23. “A manager’s job is to pursue the interests of the society.” Peter F. Drucker The Father of Modern Management

24. CHANGE “Change is the only constant in to-day’s world.” ISB “A company can not survive without change.” K.V.Kamath

25. THANK YOU