Documente Academic
Documente Profesional
Documente Cultură
BALANCED
SCORECARD
Robert S. Kaplan
Harvard Business School
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 1
What Is a Balanced Scorecard?
A Measurement
System?
A Management
System?
A Management
Philosophy?
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 2
Translating Vision and Strategy: Four
Perspectives
FINANCIAL
“To succeed Objectives Measures Targets Initiatives
financially,
how should we
appear to our
shareholders?”
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 3
The Balanced Scorecard Focuses on Factors that
Create Long-Term Value
• Traditional financial reports look backward
– Reflect only the past: spending incurred and revenues earned
– Do not measure creation or destruction of future economic value
• The Balanced Scorecard identifies the factors that create long-term economic
value in an organization, for example:
– Customer Focus: satisfy, retain and acquire customers in targeted segments
– Business Processes: deliver the value proposition to targeted customers
• innovative products and services
• high-quality, flexible, and responsive operating processes
• excellent post-sales support
Customers
– Organizational Learning & Growth:
• develop skilled, motivated employees;
• provide access to strategic information Processes People
• align individuals and teams to business unit objectives
.
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 4
The Four Perspectives Apply to Mission Driven
As Well As Profit Driven Organizations
Profit Driven Mission Driven
• What must we do to satisfy our Financial Perspective • What must we do to satisfy our financial
shareholders? contributors?
• What are our fiscal obligations?
• What do our customers expect from Customer Perspective • Who is our customer?
us? • What do our customers expect from
us?
• What internal processes must we Internal Perspective • What internal processes must we excel
excel at to satisfy our shareholder and at to satisfy our fiscal obligations, our
customer? customers and the requirements of our
mission?
• How must our people learn and Learning & Growth • How must our people learn and develop
develop skills to respond to these and Perspective skills to respond to these and future
future challenges? challenges?
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 5
The Balanced Scorecard Framework Is Readily Adapted to
Non-Profit and Government Organizations
The Mission
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 6
The City of Charlotte Corporate-level Linkage Model
Customer Perspective
Availability of
Increase Improve Maintain Promote
Reduce Strengthen Safe,
Perception Service Competitive Economic
Crime Neighborhoods Convenient
of Safety Quality Tax Rates Opportunity
Transportation
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 7
Why are Companies Adopting a Balanced Scorecard?
Increase
Custome r
Confidence
Our
Advice
Broaden
Revenue
Mix
in
Fin ancia l
Impro ve
Returns
Impro ve
Operating
Efficiency
The Pr oductivity Str ategy
“Imp rove oper ating effi ciency by shifti ng custo me rs to more cost -
effective channels of distribution”
Increase
Custome r
Satisfaction
Throu gh Superio r
Execution
Financial
Per spective
Custom er
Per spective
Inter nal
Per spective
Increase
Employee
Productivity Lear ni ng
Per spective
•Growth
Increase revenues, not just cut costs and
enhance productivity
• Implement
From the 10 to the 10,000. Every employee
implements the new growth strategy in their
day-to-day operations
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 8
Why Do We Need a Balanced Scorecard?
To Implement Business Strategy!
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 9
Our Research Has Identified Four Barriers to
Strategic Implementation
The Vision Barrier
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 10
Balanced Scorecard “Early Adaptors” Have Executed
Their Strategies Reliably and Rapidly
1995 #1 in profitability
Mobil 1993
#6 in
profitability 1996 #1 in profitability
(USM&R) 1997 #1 in profitability
Profit Stock
#1 in growth
Losing
1993 1996 and
money
Brown & Root Engineering profitability
(Rockwater)
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 11
The BSC “Early Adaptors” Have Executed Their
Strategies Reliably and Rapidly
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 12
Question:
How can complex organizations Answer:
achieve results like this in such
short periods of time? Alignment!
The Balanced Scorecard process allows an organization
to align and focus all its resources on its strategy
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 13
How Do They Do It?
The Seven Ingredients of Highly Successful Balanced Scorecard
Programs
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 14
The Ingredients of Highly Successful Balanced
Scorecard Programs
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 15
A Good Balanced Scorecard Tells the Story of
Your Strategy
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 16
The Problem: Most of Today’s Feedback Systems Are
“Controls” Oriented
Variance
Detected
Correction
Applied
Management
Feedback &
Control Loop
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 17
Strategic Learning – Some Basic
Concepts…
Replacing the budget with the Balanced Scorecard is a step
in the right direction…
FINANCIAL
Strategic Objectives Strategic Measures
Performance
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 18
Strategic Feedback Creates Strategic
Learning
The Strategy
Improve
Returns
Financial
Improve Perspective
FOLLOW-UP
Broaden Operating
Revenue Mix Efficiency
Increase Customer
Confidence in Our
Financial Advice
Increase
Customer
Satisfaction Through
Superior Execution
Customer
Perspective ACTION
Internal
“Closing the loop”
Perspective
update Increase
Employee
Productivity
Learning
Perspective
THE
the Develop
Strategic
Skills
Access to
Strategic
Information
Align
Personal
Goals MANAGEMENT
strategy strategic learning MEETING
loop “Team Problem
Pioneer’s Balanced Scorecard Solving”
FINANCIAL
Performance dialog
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 19
A New Structure for Corporate Governance– Executive
Team Takes Responsibility for Managing the Strategic
Cross-Functional Themes
CEO
Strategic Themes
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 20
The Ingredients of Highly Successful Balanced
Scorecard Programs
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 21
Not all Environments are Appropriate for a Balanced
Scorecard
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 22
Key Pitfalls to Avoid
Process Philosophy
• Middle management task force • Measurement to control; not to
• Not driven by senior executive communicate
team • Management dictating actions
• Only one or a few individuals vs. employee improvisation to
involved achieve desired outcomes
• Too long a development • For management only, not
process (allowing the “best” to shared with all employees
be the enemy of the “good”)
• Delay introduction because of
missing measurements
• Static not dynamic process
• Treating the BSC as an EIS
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 23
THE BALANCED SCORECARD
MANAGEMENT SYSTEM
Significant results can be achieved in relatively short periods of time...
© 1999 The Balanced Scorecard Collaborative and Robert S. Kaplan. All rights reserved. 24
Balanced Scorecard References