Balanced Scorecard

The Pilot s Dilemma

You heard a pilot whisper to his co-pilot. We used altitude as a measure of our flight yesterday. Let us use speed today. What is your reaction to this

The Balanced Scorecard

The Business Dashboard

Management mantra
You cannot control that which you cannot measure

BSC-Cascading
Group Company SBU Departments

The four perspectives

(Vision/Mission/Strategy) Financial Customer Internal Process Learning and Growth

Linkages in scorecard
Chain reaction concept

Strategy
Cost Leadership V/s Differentiation Industry life cycle (Introduction, growth, maturity, decline stage?) BCG Matrix (growth rate V/s Market share)

Financial perspective
Will have dependency on the strategic mission vision How will financial objectives be different in case of two companies following strategies of differentiation and cost leadership respectively?

Financial strategy-Two levers

Revenue growth Productivity

Customer perspective
Customer values Cost Time Quality Flexibility Service/relationship Image

Customer perspective
Lead Indicators V/s Lag Indicators

Internal process perspective

Cost Time Quality Flexibility

Learning and Growth Perspective

Personal growth Functional Excellence Process Improvement

Cascading of the scorecard

CorporateSBUDepartmentManager

Measures
Remember again What you cannot measure, you cannot control