PRE

SRall SENT
S:y Ch E

Ann
a
is A u
Wil
son u
Leu
n
Jack g
Ser Kwan
e
Ch a n e
n
Joh
n
Cha ny

Recommendation
Advantages
Supplementary
Aspects

Case Study

The 4
Perspectives
Disadvantages

The 4 Perspectives

Four Perspectives
Financi
al

Custom
er

Organizatio
n

Internal
Busines
s
Process

Learnin
g&
Growth

Sample Questions
How do shareholders perceive the firm?
Financial What are their financial goals?
How well does the firm serve its targeted
customers?
Customer How do customers perceive the firm?
How well is the business running?
Business Does daily operation support
organizational goals?
Process
How does the firm continue to learn and
Learning
improve to create value in the future?

& Growth

FINANCIAL
PERSPECTIVE
Performa
nce
Profitability
- Cost
control
- Growth

Timely
and
accurate
data

Financialrelated
data
Risk
assessmen
t
Costbenefit
analysis

CUSTOMER
PERSPECTIVE
Performan
ce
Customer
satisfactio
n
Customer
loyalty
Market
share

Meet the
customer
expectati
ons

Highquality
services
Efficient
in
processing
orders
On-time
delivery

INTERNAL
BUSINESS
PROCESS
PERSPECTIVE
Performanc
Efforts to
e
Core
competenc
ies
Operationa
l
excellence
Motivation

excel
Technolo
Deliver
gy
organizatio
Staff
nal
missions morale
Quality
performan
ce

LEARNING AND
GROWTH
PERSPECTIVE
Performan
ce
Technologi
cal
leadership
New
product
developme
nt

Continuo
us
learning
mode

Mentoring
Corpora
te
attitudes

Supplementary
Aspects

Recalling the 4 perspecti

ves
Financi
al

Custom
er

Organizati
on

Internal
Busines
s
Process

Learnin
g&
Growth

 How do shareholders perceive the firm?

Financial What are their financial goals?
How well does the firm serve its targeted
customers?
Customer How do customers perceive the firm?
How well is the business running?
Business Does daily operation support
organizational goals?
Process
How does the firm continue to learn and
Learning
improve to create value in the future?

& Growth

Perspectiv
e

Forming a Detailed Analysis

Objective
s
Measures
Targets
Initiatives

Case Study:
Wells Fargo Bank

ase Study: Wells Fargo Ban

adopted Balanced Scorecard
since 1990s: improve
operational performance
aims at reducing operating cost
of serving each customer

ase Study: Wells Fargo Ban

Financial
Perspective
Customer
Perspective
Business Process
Perspective

ase Study: Wells Fargo Ban

Financial
perspective
:
Quantitative
approach in
measuring and
monitoring different
attributes

Cost per
transaction
Cost per service
call
Call length
Number of service
call

ase Study: Wells Fargo Ban

Customer
perspective
:
Focus on customers
convenience
provided by the sales
methods

Monitoring transaction
time
Performance of online
banking
Proportion of online
transactions

ase Study: Wells Fargo Ban

Business
Process
Perspective
:
Adoption of
automation in the
business
processes

Automation of the call centre

Measuring the proportion of
sales that are facilitated by
automation
Monitoring the number of
customer representatives
available

Advantages

Advantages of Balanced Scor

ecard
Balanced
Assessme
nt

Full spectrum of performance

Not only focus on financial
measures

Employee
Focus

Insights into employee

experience
Affect employee retention

Proactive

From reactive to proactive

Be informed of performance
timely

Disadvantages

Disadvantages of Balanced Scorecard

High
Initial
Cost
Updates
and
Maintena
nce
Poor
Linkage

training
hiring consultants
software installation
business nature changes
change scorecard from
time
to time
little relations with
performance drivers
fail to keep track of
activities execution

There are flaws to BSC, so are there any

recommendations to remedy the situati
on?

Recommendations

Recall the four supplementary t

ools

Objectives
Objectiv
es
Measures

Rule 1:
Keep the number of
strategic objectives to the
critical few
Rule 2: Be specific

Targets
Initiative
s

Measures
Objectiv
es
Measures
Targets
Initiative
s

Rule 1: Ensure measures are

commonly defined
enterprise-wide
Rule 2: Make sure metrics
are actionable

Targets
Objectiv
es
Measures
Targets
Initiative
s

Rule 1: Comparative
performance goals
Rule 2: Time-based

Initiatives
Objectiv
es
Measures

Rule 1: Linkage to the

strategy map
Rule 2: Prioritization

Targets
Initiative
s

Q&A

THANK YOU