Description
This is a PPT explaining Balanced Scorecard.
BALANCE SCORECARD
Balanced scorecard
? The balanced scorecard is a measurement and a
management system that can channel the energies, abilities and specific knowledge held by people throughout the company towards achieving long-term strategic goals.
? The balanced scorecard, in its simplest terms, is
a system that allows an organization to measure its performance in critical areas that are key to its success.
The 4 perspectives of the balanced scorecard
? Financial perspective ? Customer perspective ? Business process perspective ? Learning and growth perspective
The 4 perspectives of the balanced scorecard
Balanced scorecard block diagram
Balanced Scorecard at L&T
Balance score card at Larsen & Toubro Limited
?
?
The Electrical Standard Products division of Larsen & Toubro Limited started with Balanced scorecard technique Aims: Retain market leadership in Electrical standard products in India, increase presence in selected market and enhance value
Goals and achievements
Following is the list of various quality certificates the company was aiming for and achieved them because of BSC TQM (Total Quality Management) VE (Value Engineering) ERP-SAP 6 Sigma Lean (To reduce the waste)
? ?
?
? ?
BSC(X-matrix) at L&T
PACE
• Goals • Strategy • Budget
Deploy
• Training • Initiate
• Audit • Metrics
Results
• Business • Appraisal
Plan
Review
Benefits of Balanced scorecard
? Helps focus the whole organization on few key things needed
to create breakthrough performance
? Helps to integrate various corporate programs such as
quality, re-engineering and customer service initiatives
? Helps in breaking down strategic measures towards lower
levels, so that unit managers, operators, and employees can see what’s required at their level to achieve excellent overall performance
? Provides feedback about the internal process and the external
outcomes
? Continuous improvement of strategic performance and result
Uses of balanced scorecard technique
? Clarify or update a business’s strategy ? Link strategic objectives to long-term targets and ? ? ? ? ?
annual budgets Track the key elements of the business strategy Incorporate strategic objectives into resource allocation processes Facilitate organizational change Compare performance of geographically diverse business units Increase companywide understanding of the corporate vision and strategy
Limitations of Balanced Scorecard
? Must be balanced. If it doesn't include both financial goals as
well as non-financial goals, it will lose its utility. So if correct measures are not included in a Balanced Scorecard, the companies will find it difficult to deploy it into action. ? Should not be too functionally oriented, then too many measures and too many numbers will come into the picture and therefore, the effectiveness of the tool will be lost ? It does not help the management in improving the important drivers that affect the success of a company. ? Needs continuous review by the companies. It should be updated regularly because the main drivers keep on changing. A static Balanced Scorecard will result in measuring the wrong things and therefore could cause to go down the wrong path.
THANK YOU!
doc_857431529.ppt
This is a PPT explaining Balanced Scorecard.
BALANCE SCORECARD
Balanced scorecard
? The balanced scorecard is a measurement and a
management system that can channel the energies, abilities and specific knowledge held by people throughout the company towards achieving long-term strategic goals.
? The balanced scorecard, in its simplest terms, is
a system that allows an organization to measure its performance in critical areas that are key to its success.
The 4 perspectives of the balanced scorecard
? Financial perspective ? Customer perspective ? Business process perspective ? Learning and growth perspective
The 4 perspectives of the balanced scorecard
Balanced scorecard block diagram
Balanced Scorecard at L&T
Balance score card at Larsen & Toubro Limited
?
?
The Electrical Standard Products division of Larsen & Toubro Limited started with Balanced scorecard technique Aims: Retain market leadership in Electrical standard products in India, increase presence in selected market and enhance value
Goals and achievements
Following is the list of various quality certificates the company was aiming for and achieved them because of BSC TQM (Total Quality Management) VE (Value Engineering) ERP-SAP 6 Sigma Lean (To reduce the waste)
? ?
?
? ?
BSC(X-matrix) at L&T
PACE
• Goals • Strategy • Budget
Deploy
• Training • Initiate
• Audit • Metrics
Results
• Business • Appraisal
Plan
Review
Benefits of Balanced scorecard
? Helps focus the whole organization on few key things needed
to create breakthrough performance
? Helps to integrate various corporate programs such as
quality, re-engineering and customer service initiatives
? Helps in breaking down strategic measures towards lower
levels, so that unit managers, operators, and employees can see what’s required at their level to achieve excellent overall performance
? Provides feedback about the internal process and the external
outcomes
? Continuous improvement of strategic performance and result
Uses of balanced scorecard technique
? Clarify or update a business’s strategy ? Link strategic objectives to long-term targets and ? ? ? ? ?
annual budgets Track the key elements of the business strategy Incorporate strategic objectives into resource allocation processes Facilitate organizational change Compare performance of geographically diverse business units Increase companywide understanding of the corporate vision and strategy
Limitations of Balanced Scorecard
? Must be balanced. If it doesn't include both financial goals as
well as non-financial goals, it will lose its utility. So if correct measures are not included in a Balanced Scorecard, the companies will find it difficult to deploy it into action. ? Should not be too functionally oriented, then too many measures and too many numbers will come into the picture and therefore, the effectiveness of the tool will be lost ? It does not help the management in improving the important drivers that affect the success of a company. ? Needs continuous review by the companies. It should be updated regularly because the main drivers keep on changing. A static Balanced Scorecard will result in measuring the wrong things and therefore could cause to go down the wrong path.
THANK YOU!
doc_857431529.ppt