Balanced Scorecard (House of Tata)

By Group 9 Sec A Abhishek Sahoo Mandar Vibhute Amol Mankar Anil Singh Debo Priyo Konar

4 PERSPECTIVES IN BALANCE SCORECARD

Financial Perspective

The Strategy

If we succeed, how will we look to our shareholders?

Customer Perspective
To achieve our vision, how must we look to our customers? Internal Perspective To satisfy our customers, which processes must we excel at? Learning & Growth Perspective To achieve our vision, how must our organization learn and improve?

Balanced Scorecard Measurements

Why BSC
Focus on key things needed to achieve breakthrough performance Integration of various corporate program like Quality, Business process re-engineering and Customer service initiatives Communication and understanding of business goals and strategies at all levels Provide comprehensive picture of business operation

Tata Steel(Tisco)

Financial Perspective Revenue Growth Strategy Growth rate in steel business Enrich Product Mix

Improve returns Productivity Strategy

Lowest Cost Producer

Value creating partnership Customer Perspective

Service & Delivery

Move from commodity to brand

Better distribution & Channel Management

Internal

Encourage innovation
Customer Driven R & D

Develop new products Understand customer segments

Develop new Capacity products utilization

Strategic outsourcing

Supplier partnerships Improve quality of life of communities

Learning perspective
Manage knowledge Engaged employees ,Personal alignment to strategy Create Leadership Programs

Improve the quality of life of employees and the communities

Tisco Strategy

Balanced Scorecard
Strategic Objectives Strategic Measures Target Initiatives Financial: Profitability More customers Invest in attractive new business(divest, merge, acquire) Economic value added Increase in top line growth 10 % increment in sales Internal Capacity Expansion

Customer: Value creating partnership with customers Internal: Value creating partnerships with suppliers Continue to be lowest producer of steel Outsource strategically Ensure safety and environment sustainability Learning: Manage Knowledge Improve the quality of life of employees Leadership development programs

Customer Satisfaction Index for different products Supplier satisfaction index Corporate citizenship index

Develop Customer relationship index Improve corporate government practices Improve operational excellence & sustain cost competitiveness Implement social accountability Improve knowledge sharing Improve workplace ambience, safety and ergonomics Develop Leadership Programs

Employee satisfaction index

TCS

Financial Perspective
Total Cost of Ownership Saving

Customer Satisfaction

Customer Appreciation

Customer Complaint Reduction

Quality of Service

Customer Perspective

Internal
Alerts resolved without error Projects delivered on time Projects Delivered on budget SLA compliance to response time

SLA compliance to resolution time

Learning perspective
Compliance to minimum competency level Unplanned Attrition in critical phase Upload activity of assets into KM system Reference activity of assets in KM system

TCS Strategy

Strategic Objectives

Balanced Scorecard
Strategic Measures Focus on Customer Vendor Relationship Portfolio / Program Objectives Benefits driven SLAs

Initiatives

Financial: TCO Savings

Variable pricing models

Customer: CSI - Most important Service & Business Goals parameters rated high Quality of Service (from annual survey) Internal: Post Delivery Defects Steering Committee Meeting Monthly Governance

Customer Satisfaction Index CSI - Most important Service & Business goals parameters rated high

Start from Customer Expectations on Portfolio Benefits and distribute SLAs across relevant BSC perspectives

Projects delivered on time Projects Delivered on budget SLA compliance to response time SLA compliance to resolution time

Learning: Conducive environment for mindset changes through incentive/rewards ,feeling of ownership

Upload activity of assets into KM system Reference activity of assets in KM system Compliance to minimum competency level Prevent unplanned Attrition in critical phases

Tata Motors

FINANCIAL PERSPECTIVE OBJECTIVE

Increase ROCE Increase Customer base : No of new dealer and sales from new dealers Build export business: Sales from export business Maximize asset utilization: Asset turnover Become industry cost leader : operating cost/sales; cost reduction achieved over standard cost

CUSTOMER PERSPECTIVE OBJECTIVE

Provide value for money through low cost mfg that meets world class quality and delivery expectations Enhance product offerings Increase accessibility for customers Enhance Customer satisfaction through safe, reliable and good value products and services

INTERNAL PERSPECTIVE OBJECTIVE

Achieve customer expectations in quality level: Cars defective per 1000 Meet delivery requirement Optimize asset utilization Minimize operations cost: Actual cost/Std cost and mfg cost/sales

LEARNING AND GROWTH PERSPECTIVE OBJECTIVE

Enhance employee satisfaction Personal Growth, Functional Excellence Leadership Skills Acquire diesel engine technology

Increase ROCE

Financial Perspective
Be a dominant player in domestic market in all segments Grow International Business

Maximize Asset Utilization

Grow non-cyclical business revenue (Export + Defense)

Increase accessibility for customers

Customer Perspective

Enhance product offerings

Enhance Customer satisfaction through safe, reliable and good value products and services

Build the Franchise

Increase Customer Value

Operational Excellence

Internal Perspective
Excel in CRM

Achieve customer quality expectation

Upgrade delivery process capability Minimize operating cost

Improve Design/ Testing capability

A Motivated and Prepared Workforce

Climate for Action Competencies Functional Excellence Leadership Skills Integrated View Technology Acquire diesel engine technology

Learning & Growth Perspective

Enhance employee satisfaction Personal Growth

Indian Hotels

Balanced Scorecard
Strategic Priorities Objectives Measures Targets Initiatives

Financial

Maximise Cash Flow Short Payback Period

Profitable growth Asset utilisation

ROCE Cash Flow

10 % growth rate

Cost cutting Going slow on expansion

Customer

Customer delight

Ensure customer retention and customer loyalty

Market share Prefer ability in its segment

40%

International standards service and attending to grievances in real time Intelligent feedback forms designed for user specific feedback on products and services

Internal

Image and franchise Building Operational excellence

Forming differentiation strategy Inventory management & efficient supply chain

Increase in reach and penetration Run out rates

More awareness and marketing programs Learning from historical trends and forecasting of demand accurately

Learning and growth

Hiring motivated cordial and dedicated staff Innovation and automation in balance scorecard implementation

Good and healthy work climate and ensuring competency

Frequent Employee survey and strategic competency Increase in user convenience and efficiency

Skills program and structured hierarchy keeping in mind the target customer Establish synergy of metrics and ensuring effective management

Tata Tea

Balanced Scorecard
Objectives Finance Global Benchmarking Reduction in finance cost Measures Improve service level and reduce service cost Strategic review of the cost is done Targets To emerge as global organization To increase the profit Initiatives Standardization initiative Help of global advisors is taken

Customer Perspective Packaging Changing according to the customer needs

Attractive packaging Enterprise sustainability

To make the product more attractive To become global and satisfy customer needs

Increased the brand investment Entering new markets to understand customer needs Continued to Integrate and build global capabilities, while investing in its brands, products and growth areas

Internal To improve operational performance

Primary producer of bulk tea

Successful in passing on cost increases and maintaining its strong position in key markets

Learning & Growth Leveraging 25 years of the brand To accelerate growth

Change your perspective campaign Range of training programmes

Express appreciation to stakeholders Holistic personality development

Company implemented price changes across brands Focus on attracting and nurturing talent

Thanks