BALANCED SCORECARD

By,
NITI JAIN
NAHID MALIK
 Contents
Definition
Objectives of balanced scorecard
Implementation of balanced
scorecard
Designing a balanced scorecard
What is a Balanced Scorecard?
 The traditional performance reporting system largely
emphasis on financial parameters which basically involve
cost control measures. However in today’s globally
competitive environment organisations are competing in
term of;

 Product quality

 Delivery schedule

 Reliability after sale service and not merely in term of

customer satisfaction but customer delight

 It’s a formal method

 incorporate both financial and non- financial

performances measures

 It’s translates organisational vision and strategies

into performance objectives and related

performances measures that can be monitored

over time
Objectives of Balanced Scorecard
 To develop a comprehensive framework for translating organisational
strategies.
 Helps in achieving organisational vision.
 Industry analysis focuses on five forces:
a) Competitors
b) Potential entrants in the market
c) Equivalent products
d) Bargaining power of customer
e) Bargaining power of the important suppliers
IMPLEMENTATION

OF

BALANCED

SCORECARD
CLARIFICATION OF VISION, MISSION, CORE
COMPETENCIES AND STRATEGIES

ANALYSE PERSPECTIVES TO DEVELOP PERFORMANCE

OBJECTIVES AND MEASURES

COMMUNICATION LINK THROUGHOUT THE

ORGANISATION

ESTABLISH PERFROMANCE TARGETS AND ACTION

PLANS.

COLLECT SCORECARD DATA TO MONITOR

PERFORMANCE

ANALYSE RESULT AND REWARD EMPLOYEES

REFINING THE PROCESS

Clarification Of Vision, Mission,
Core Competencies And Strategies

 Strategies are :

 Continuously improving functionality

 Reliability’

 quality
Analyse perspectives to develop
performance objectives measures.
Communication link throughout the
organisation .
 Clarifying and refining decisions to other levels of

organisation

 Communicating effectively to employees for better

coordination.
Establish performance targets
and action plans
 Analyse budgeted targets , actual performance

 Interaction between employees and

management at different levels .

Collection of scorecard data to monitor
performances

 Well developed information system

 Comparison between actual results and target sets

Analysis of results and rewarding
Employees

 Analyse reason for difference between actual and target

performance.

 Revise future strategies

Refining The Process
 Establishment of proper feedback system

 Information gathered is used for making future

adjustments.
Designing a balanced scorecard
 Sequence of cause and effect relationship
 Effective communication of organisations strategy at all
levels.
 Proper linkage between financial and non financial
performance
 Emphasis on critical measures
 Balance between short term and long term measures
Thank you