Description
The presentation is about balanced scorecard with profits of the company explaining by using Jaguar's example.
BALANCED SCORECARDS
The Balanced Scorecard
Management translates its strategy into performance measures that employees understand and accept.
Customers
Financial
Performance measures
Internal business processes Learning and growth
The Balanced Scorecard: From Strategy to Performance Measures Performance Measures
Financial
Has our financial performance improved?
Exh. 10-11
What are our financial goals? What customers do we want to serve and how are we going to win and retain them? What internal business processes are critical to providing value to customers?
Customer
Do customers recognize that we are delivering more value?
Vision and Strategy
Internal Business Processes
Have we improved key business processes so that we can deliver more value to customers?
Learning and Growth
Are we maintaining our ability to change and improve?
The Balanced Scorecard: Non-financial Measures
The balanced scorecard relies on non-financial measures in addition to financial measures for two reasons:
?Financial measures are lag indicators that summarize the results of past actions. Non-financial measures are leading indicators of future financial performance.
? Top managers are ordinarily responsible for financial performance measures – not lower level managers. Non-financial measures are more likely to be understood and controlled by lower level managers.
The Balanced Scorecard for Individuals
The entire organization should have an overall balanced scorecard. Each individual should have a personal balanced scorecard.
A personal scorecard should contain measures that can be influenced by the individual being evaluated and that support the measures in the overall balanced scorecard.
The Balanced Scorecard
A balanced scorecard should have measures that are linked together on a cause-and-effect basis.
If we improve one performance measure . . .
Then
Another desired performance measure will improve.
The balanced scorecard lays out concrete actions to attain desired outcomes.
The Balanced Scorecard and Compensation
Incentive compensation should be linked to balanced scorecard performance measures.
The Balanced Scorecard Jaguar Example
Profit
Financial
Exh. 10-13
Contribution per car Number of cars sold
Customer
Customer satisfaction with options
Internal Business Processes
Number of options available
Time to install option
Learning and Growth
Employee skills in installing options
The Balanced Scorecard Jaguar Example
Profit Contribution per car Number of cars sold Customer satisfaction with options
Strategies Results
Satisfaction Increases Time Decreases
Increase Options
Number of options available
Time to install option
Increase Skills
Employee skills in installing options
The Balanced Scorecard Jaguar Example
Profit Contribution per car
Results
Number of cars sold Customer satisfaction with options
Strategies
Cars sold Increase Satisfaction Increases
Increase Options
Number of options available
Time to install option
Employee skills in installing options
The Balanced Scorecard Jaguar Example
Profit Contribution per car Number of cars sold Customer satisfaction with options
Results
Contribution Increases
Number of options available
Strategies
Time to install option
Time Decreases
Increase Skills
Employee skills in installing options
The Balanced Scorecard Jaguar Example
Profit
If number of cars sold and contribution per car increase, profits increase.
Results
Profits Increase Contribution Increases
Contribution per car Number of cars sold Customer satisfaction with options
Satisfaction Increases Time Decreases
Strategies
Increase Options
Number of options available
Time to install option
Increase Skills
Employee skills in installing options
doc_714420075.pptx
The presentation is about balanced scorecard with profits of the company explaining by using Jaguar's example.
BALANCED SCORECARDS
The Balanced Scorecard
Management translates its strategy into performance measures that employees understand and accept.
Customers
Financial
Performance measures
Internal business processes Learning and growth
The Balanced Scorecard: From Strategy to Performance Measures Performance Measures
Financial
Has our financial performance improved?
Exh. 10-11
What are our financial goals? What customers do we want to serve and how are we going to win and retain them? What internal business processes are critical to providing value to customers?
Customer
Do customers recognize that we are delivering more value?
Vision and Strategy
Internal Business Processes
Have we improved key business processes so that we can deliver more value to customers?
Learning and Growth
Are we maintaining our ability to change and improve?
The Balanced Scorecard: Non-financial Measures
The balanced scorecard relies on non-financial measures in addition to financial measures for two reasons:
?Financial measures are lag indicators that summarize the results of past actions. Non-financial measures are leading indicators of future financial performance.
? Top managers are ordinarily responsible for financial performance measures – not lower level managers. Non-financial measures are more likely to be understood and controlled by lower level managers.
The Balanced Scorecard for Individuals
The entire organization should have an overall balanced scorecard. Each individual should have a personal balanced scorecard.
A personal scorecard should contain measures that can be influenced by the individual being evaluated and that support the measures in the overall balanced scorecard.
The Balanced Scorecard
A balanced scorecard should have measures that are linked together on a cause-and-effect basis.
If we improve one performance measure . . .
Then
Another desired performance measure will improve.
The balanced scorecard lays out concrete actions to attain desired outcomes.
The Balanced Scorecard and Compensation
Incentive compensation should be linked to balanced scorecard performance measures.
The Balanced Scorecard Jaguar Example
Profit
Financial
Exh. 10-13
Contribution per car Number of cars sold
Customer
Customer satisfaction with options
Internal Business Processes
Number of options available
Time to install option
Learning and Growth
Employee skills in installing options
The Balanced Scorecard Jaguar Example
Profit Contribution per car Number of cars sold Customer satisfaction with options
Strategies Results
Satisfaction Increases Time Decreases
Increase Options
Number of options available
Time to install option
Increase Skills
Employee skills in installing options
The Balanced Scorecard Jaguar Example
Profit Contribution per car
Results
Number of cars sold Customer satisfaction with options
Strategies
Cars sold Increase Satisfaction Increases
Increase Options
Number of options available
Time to install option
Employee skills in installing options
The Balanced Scorecard Jaguar Example
Profit Contribution per car Number of cars sold Customer satisfaction with options
Results
Contribution Increases
Number of options available
Strategies
Time to install option
Time Decreases
Increase Skills
Employee skills in installing options
The Balanced Scorecard Jaguar Example
Profit
If number of cars sold and contribution per car increase, profits increase.
Results
Profits Increase Contribution Increases
Contribution per car Number of cars sold Customer satisfaction with options
Satisfaction Increases Time Decreases
Strategies
Increase Options
Number of options available
Time to install option
Increase Skills
Employee skills in installing options
doc_714420075.pptx