Beruflich Dokumente
Kultur Dokumente
By
VELUSAMY.NP
(REG. NO. 0929170)
A PROJECT REPORT
Submitted to the
I sincerely thank all the staff members of the Crescent Business School for their
valuable advice and kind cooperation, without which the project would not have emerged
as a successful one.
ABSTRACT
LIST OF ABBERIVATIONS
BSC – balanced scorecard
FTE – Full Time Employee
CU – capacity utilization
SU – seat utilization
CRM- customer relationship management
TQM – Total Quality Control
BG – Business Group
SBG - Sub Business group
RMS – Residential mortgage service
CSG – commercial servicing group
DD – Due Diligence
LA – Lease Administration
TAT – Turn Around Time
CSAT – Customer Satisfaction
FPY – First Pass Yield
CHAPTER – 1
INTRODUCTION
With 4,500+ employees worldwide, Zenta has operations in six locations across
three continents. Zenta is a preferred employer in India.
ZENTA SOLUTIONS
From origination and throughout the customer lifecycle, Zenta delivers deep, end-
to-end servicing solutions. Zenta's specialized focus on the financial services industry and
our management expertise and experience, are the reasons we have been chosen to
provide high-end business processing for some of the world's most prestigious banks and
financial institutions.
Client Focused:
We're passionate about our clients and are easy to do business with. We sell our
clients what they want to buy, how they want to buy it. We are flexible and responsive,
tailoring our solutions to our clients' unique needs. And we honor our commitments.
Employee Centric:
We provide our employees with rewarding and satisfying career opportunities
based on their personal performance and contribution.
Cultural Compatibility:
Our clients are primarily in North America and Europe. Our operations are
primarily in India. We must be adept at managing and leading in multiple cultures. We
have assembled a diverse management team that understands the Western business
environment and the needs, aspirations and motivations of our global work force.
Ethics:
The line between right and wrong is not gray or blurred. It is a bright line and we
will not cross it, nor will we tolerate anyone who does
Operational Excellence:
We are committed to operational excellence. We employ a global work force. We
capture work anywhere in the world, move it to wherever in the world we can find the
right blend of cost and quality to work and deliver it back to our clients, wherever in the
world they may be
Accountability:
We hold ourselves accountable for results. We push decision-making to the
lowest possible level. When approvals are required, they are given as rapidly as possible.
Our business leaders are experienced outsourcing industry professionals from global
companies. We have an exceptional track record of attracting and retaining senior talent
with both global exposure and domain expertise to meet our clients' unique business n?
ends.
1.2 INTRODUCTION TO BALANCED SCORECARD
1.2.1 HISTORY
Throughout the history of contemporary management theories starting from the
ones that were introduced between the intrusion of the mass production in the beginning
of the 20th century and until today, all the gurus of management have been trying to find
uniform solutions on more efficient allocation and use of very limited resources available
to businesses.
In the down of the century, Frederick W. Taylor established the very concepts of
resource allocation in his Principles of Scientific Management. In 1920 it went around
assembly line and motion studies as the first experience from systematic mass production
had given theorists quite a lot of materials to be analyzed from the point of view of using
traditional by blue-collar employees more efficiently. In the 1930, the main topic was
motivation of employees, as it turned out that human nature does not enable to work long
hours on a repetitive tasks without frustration level getting so high enough to diminish
productivity. In the 1940 and 1950, the first statistical and linear methods were
introduced in trying to measure logistics of the operations management and its
implications to overall company success in financial-analysis side.
In the beginning of 1980, partly because of introduction of electronic data
processing equipment and quick development of computers, the whole array of
management techniques were initiated. The particular reasons for the vast development of
the new theories were catalyzed mainly by ever growing competition generated through
more systematic use of computers, and of course also by rapid growth of the importance
of human capital.
During the industrial age, the financial control systems were developed in major
companies to facilitate and monitor efficient allocations of financial and physical capital.
A summary financial measure such as return-on-capital-employed (ROCE) could both
direct a company’s internal capital to its most productive use and monitor the efficiency
by which operating divisions used financial and physical capital to create value for
shareholders.
The emergence of the information era, however, in the last decades of the 20th
century, has made obsolete many of the fundamental assumptions of the industrial age
competition. The information age environment for both manufacturing and service
organizations requires new capabilities for competitive success. The ability of any
company to mobilize and exploit its intangible assets has become far more decisive that
investing and managing tangible, physical assets.
Today automation and productivity have increased the number of people
performing analytic functions: engineering, marketing, management and administration.
Therefore, these people are more viewed as problem solvers, not as variable costs. In
other words, information age ahs brought about the concept of knowledge management.
The shift to successful knowledge management has introduced a variety of improvement
initiatives such as; JIT, TQM, Lean enterprise, Time-based competition, Customer-
focused organizations etc. Some of those programmers have meant in practice real
breakthrough and improvement, others have proven to be in the best case just a short-
time disturbance, but in the worst cases total failures resulting in disarray or even
bankruptcy of a particular company. The main reason for that lies in five main
implementation problems:
1. Current performance measurement systems are based on the traditional financial
accounting model, which does not enable to objectively analyze information-age
companies;
2. If some non-financial performance measurement even is made, it is solely based
on employees’ tactical performance, not on strategic performance,
3. Majority of management and employee salary-based motivation schemes are only
short-run profit oriented, that does not enable to align towards long-run profit
oriented, that does not enable to align towards long-run goals;
4. Overall company strategy is not closely linked to organizational and personal
improvement programmers; and
5. Strategy is not generally linked to resource allocation, which results in under
financing some of the crucial parts of organization’s development.
As for today, superior financial performance and efficiency in production are just not
enough to gain sufficient competitive advantage but more and more attention needs to be
paid to intangible sides of business.
Creating your winning strategy is only the first part of your Balanced Scorecard
implementation. The next part is measuring the success (or "failure") of your strategy.
Measuring your strategy enables you to confirm or set aside the assumed causes
and effects you have based your strategy on. This is vital information. Your strategy is
based on what you believe influences the perspectives the most. Keeping track of the
right measures and communicating the success or failure to achieve the target values of
such measures help everyone focus on the issues that matters most.
If this doesn't happen, then the assumption on which our strategy is based may be
wrong and we may have to rewrite our strategy. Getting this kind of information to your
desk fast may save you from total embarrassment. Confirm or disprove your ability to
achieve what you have planned to achieve. Had the desired effect on your ability to
deliver internal processes end objectives
1.4 OBJECTIVES OF THE STUDY
Balanced scorecard was the one the key control tool to manage the organization
effectively according to the strategy this implemented to achieve
1. To improves the bottom line by reducing process cost and improving productivity and
mission effectiveness.
3. It allows managers to identify best practices in an organization and expand their usage
elsewhere.
4. The visibility provided by a measurement system supports better and faster budget
decisions and control of processes in the organization. This means it can reduce risk.
5. Visibility provides accountability and incentives based on real data, not anecdotes and
subjective judgments. This serves for reinforcement and the motivation that comes from
competition.
7. It can raise you agency's Baldrige score, which can serve to increase its long-term
chances of survival.
1.5 SCOPE OF THE STUDY “BALANCED SCORECARD AS PERFORMANCE
MANAGEMENT TOOL”
The Balanced Scorecard enables organizations to bridge the gap between strategy
and actions, engage a broader range of users in organizational planning, reflect the most
important aspects of the business, and respond immediately to progress, feedback and
changing business conditions. The Balanced Scorecard can be a great help used as a
strategic tool, a management methodology or / and a measurement system.
The Balanced Scorecard provides organizations with the ability to clarify vision
and strategy and translate them into action. By focusing on future potential success it
becomes a dynamic management system that is able to reinforce, implement and drive
corporate strategy forward.
The concept of the Balanced Scorecard has achieved increasing popularity in the
business world. Many businesses had previously built their objectives around financial
targets and goals of little relevance to a long-term strategic vision, thus typically leaving
a gap between strategy development and implementation.
LITERATURE
The balanced scorecard has evolved from its early use as a simple performance
measurement framework to a full strategic planning and management system. The “new”
balanced scorecard transforms an organization’s strategic plan from an attractive but
passive document into the "marching orders" for the organization on a daily basis. It
provides a framework that not only provides performance measurements, but helps
planners identify what should be done and measured. It enables executives to truly
execute their strategies.
Kaplan and Norton's first book, The Balanced Scorecard, remains their most
popular. The book reflects the earliest incarnations of Balanced Scorecard - effectively
restating the concept as described in the second Harvard Business Review article. Their
second book, The Strategy Focused Organization, echoed work by others (particularly in
Scandinavia) on the value of visually documenting the links between measures by
proposing the "Strategic Linkage Model" or “strategy map”. Since then Balanced
Scorecard books have become more common - in early 2010 Amazon was listing several
hundred titles in English which had Balanced Scorecard in the title.
Kaplan and Norton describe the innovation of the balanced scorecard as follows:
"The balanced scorecard retains traditional financial measures. But financial measures
tell the story of past events, an adequate story for industrial age companies for which
investments in long-term capabilities and customer relationships were not critical for
success. These financial measures are inadequate, however, for guiding and evaluating
the journey that information age companies must make to create future value through
investment in customers, suppliers, employees, processes, technology, and innovation."
Adapted from Robert S. Kaplan and David P. Norton, “Using the Balanced Scorecard as a Strategic Management
System,” Harvard Business Review (January-February 1996): 76.
Figure 2.1
The balanced scorecard suggests that we view the organization from four perspectives,
and to develop metrics, collect data and analyze it relative to each of these perspectives:
This perspective includes employee training and corporate cultural attitudes related to
both individual and corporate self-improvement. In a knowledge-worker organization,
people -- the only repository of knowledge -- are the main resource. In the current climate
of rapid technological change, it is becoming necessary for knowledge workers to be in a
continuous learning mode. Metrics can be put into place to guide managers in focusing
training funds where they can help the most. In any case, learning and growth constitute
the essential foundation for success of any knowledge-worker organization.
Kaplan and Norton emphasize that 'learning' is more than 'training'; it also includes things
like mentors and tutors within the organization, as well as that ease of communication
among workers that allows them to readily get help on a problem when it is needed. It
also includes technological tools; what the Baldrige criteria call "high performance work
systems."
This perspective refers to internal business processes. Metrics based on this perspective
allow the managers to know how well their business is running, and whether its products
and services conform to customer requirements (the mission). These metrics have to be
carefully designed by those who know these processes most intimately; with our unique
missions these are not something that can be developed by outside consultants.
There are three principles which will enable the organization’s balanced scorecard to be
linked to its strategy
• Cause and effect relationship
• Performance drivers
• Linkage to financials
Cause Effect
Then
Cause and effect relationship for training
All balanced scorecards use certain generic measures. These generic measures
tend to be core outcome measures, which reflect the common goals of many strategies as
well as similar structures across industries and companies. These generic outcome
measures tend to be lag indicators, such as profitability, market share, customer
satisfaction, customer retention, and employee skills. The performance drivers, the lead
indicators are the ones that tend to be unique for a particular business unit. The
performance driver reflect the uniqueness of the business unit strategy; for example, the
financial drivers of profitability, the market segments in which the unit chooses to
complete, and the particular internal processes and learning and growth objectives that
will deliver the value propositions to targeted customers and market segments.
A good balanced scorecard should have a mix of outcome measures and
performance drivers. Outcome measures without performance drivers do not
communicate how the outcomes are achieved. They also do not provide an earlier
indication about whether the strategy is being implemented successfully. Conversely, the
performance drivers – such as cycle time and part-per million defect rated – without
outcome measures enable the business unit to achieve short operational improvements,
but will fail to reveal whether the operational improvements have been translated into
expanded business with existing and new customers, and eventually, to enhance the
financial performance. A good balanced scorecard should have an appropriate mix of
outcome (lagging indicators) and performance drivers (leading indicators) that have been
customized to the business unit strategy.
LINKAGE TO FINANCIALS
With the proliferation of change programs under way in most organization today
it is easy to become preoccupied with such goals as quality, customer satisfaction,
innovation, and employee empowerment for their own sake. Will those goals can lead to
improved business unit performance, they may not if these goals are taken as ends in
themselves. The financial problems of some recent Baldrige award winners give
testimony to the need to link operational improvements to economical results.
A good balanced scorecard must retain a strong emphasis on outcomes, especially
financial ones like return–on–capital-employed or economic value added. Many
managers fail to link programs, quality management, cycle time reduction, reengineering,
and employee empowerment, to outcomes the directly influence customers and that
deliver future financial performance in such organizations the improvement programs
have incorrectly been taken as the ultimate objective they have not been linked to specific
targets and eventually financial performance. The inevitable result in that such
organization eventually become disillusioned about the lack of tangible payoffs from
their change programs. Ultimately, casual paths from all the measures on a scorecard
should be linked to financial objectives.
• The ability to determine if sales and profit problems are caused by strategies,
operations, or both;
• Early identification of problems and opportunities;
• Increased productivity, quality, and customer service;
• A clear understanding of what drives financial and operational performance so
resources can be allocated to the areas of greatest return; and
• A cohesive organization working toward common goals.
• No matter what approach you use to develop performance measures, bear in mind
that the objective is not to have a Balanced Scorecard, Performance Prism or
some other type of system, but to have the measures in place that will enable
managers at all levels to answer the ten key questions given earlier.
If all of your managers can readily answer those questions about their areas of
responsibility and support their answers with objective numbers, your company has the
performance measures it needs. If they can’t, some of the "good" decisions they are
making are undoubtedly not very effective - and they may even be harmful.
CHAPTER 3
Although it helps focus managers' attention on strategic issues and the management
of the implementation of strategy, it is important to remember that the balanced scorecard
itself has no role in the formation of strategy. In fact, balanced scorecards can
comfortably co-exist with strategic planning systems and other tools.
In the mid 1990s, an improved design method emerged. In the new method, measures are
selected based on a set of "strategic objectives" plotted on a "strategic linkage model" or
"strategy map". With this modified approach, the strategic objectives are distributed
across the four measurement perspectives, so as to "connect the dots" to form a visual
presentation of strategy and measures.
To develop a strategy map, managers select a few strategic objectives within each of the
perspectives, and then define the cause-effect chain among these objectives by drawing
links between them. A balanced scorecard of strategic performance measures is then
derived directly from the strategic objectives. This type of approach provides greater
contextual justification for the measures chosen, and is generally easier for managers to
work through. This style of Balanced Scorecard has been commonly used since 1996 or
so: it is significantly different in approach to the methods originally proposed, and so can
be thought of as representing the "2nd Generation" of design approach adopted for
Balanced Scorecard since its introduction.
Several design issues still remain with this enhanced approach to Balanced Scorecard
design, but it has been much more successful than the design approach it superseded.
In the late 1990s, the design approach had evolved yet again. One problem with the "2nd
generation" design approach described above was that the plotting of causal links
amongst twenty or so medium-term strategic goals was still a relatively abstract activity.
In practice it ignored the fact that opportunities to intervene, to influence strategic goals
are, and need to be anchored in the "now;" in current and real management activity.
Secondly, the need to "roll forward" and test the impact of these goals necessitated the
creation of an additional design instrument; the Vision or Destination Statement. This
device was a statement of what "strategic success," or the "strategic end-state" looked
like. It was quickly realized, that if a Destination Statement was created at the beginning
of the design process then it was much easier to select strategic Activity and Outcome
objectives to respond to it. Measures and targets could then be selected to track the
achievement of these objectives. Design methods that incorporate a "Destination
Statement" or equivalent (e.g. the Results Based Management method proposed by the
UN in 2002) represent a tangibly different design approach to those that went before, and
have been proposed as representing a "3rd Generation" design method for Balanced
Scorecard.
Design methods for Balanced Scorecard continue to evolve and adapt to reflect the
deficiencies in the currently used methods, and the particular needs of communities of
interest (e.g. NGO's and Government Departments have found the 3rd Generation
methods embedded in Results Based Management more useful than 1st or 2nd
Generation design methods).
The Balanced Scorecard is currently a very trendy (and often misunderstood) topic in
business circles, but there are other measurement frameworks such as the Performance
Prism, the Quantum Performance Management Model and the Tableau de Bord. All are
useful, but none of them is the answer to everything despite what their advocates may
say.
All of the listed variables can be measured to a useful degree of accuracy and
some companies are doing it. Companies that have won the Baldrige Award or similar
state award have extensive measurement systems that include all of the above measures.
So how can you determine what your company should measure? As mentioned
before, there are several frameworks that can be used. Although they all have merit, some
have advantages in terms of their state of development, ease of use, and direct
relationship to common business practices.
I believe the best approach for developing company or business unit strategy and
related measures is to use the Balanced Scorecard methodology in conjunction with the
robust perspectives of the Performance Prism. Balanced Scorecard performance systems
have an established record of success, but one needs a disciplined way of building and
implementing the system to ensure that business strategies get executed and that the
necessary organization culture change gets implemented. One framework that is
becoming an international "best practice" is the Balanced Scorecard Institute's Nine-Step
Methodology for developing strategic themes, business strategies, strategic goals,
strategy maps, performance measures, targets, and new initiatives. The result is a
strategic management system that is comprehensive, logically sound, and supported by
the whole organization.
This does not assure the strategies will work, but the measures will provide timely
feedback about how well they are working so timely corrective action can be taken
regarding the strategies or their execution. Without the measures, a company’s strategy
and finances could get substantially off-track before any problems are even recognized.
For developing operational measures, I recommend the approach and model given
in my book Operational Performance Measurement: Increasing Total Productivity. No
doubt I am biased, but the book’s process measurement model is the only one I’ve seen
that meets three critical criteria: it is logically sound, it readily relates to real world
processes, and it has a record of successful application. The model is also consistent with
TQM and Six Sigma methodologies that contain many specialized techniques for
measuring and managing processes.
Becoming familiar with the Baldrige Criteria for Performance Excellence is also
recommended. Since it outlines general management best practices, it provides a very
helpful perspective on what a well-managed company should be measuring, as well as
what it should be doing.
Cascading measures
Corporate level measures are very important, but they aren’t going to have much
impact unless they are cascaded all the way down to front-line employees. The case for
cascading is simple: Do you want 10% of your employees working toward company
objectives or 100%?
With some exceptions, such as market share, what you measure at the top is what
must be measured at all levels. However, the specific measures will change with every
function and organizational level because managers doing different jobs need different
information to make different decisions.
The same methodologies used to develop measures at the corporate level can be
used to cascade the measures down to front-line managers, supervisors, and employees.
However, as you go down the organization chart, the focus is on operations or processes.
Strategy is incorporated into operational measures by giving more weight to the measures
that are strategically important. This communicates strategy to all employees by
translating it into operational terms - a primary objective of the Balanced Scorecard.
Determining what to measure can take considerable effort, but it will probably be
less than one-third of the total effort required to implement an efficient and effective
measurement system. Data collection and processing systems will have to be
implemented to produce the measures; everyone will have to be trained in using the
systems and measures; and as the measures are used, some problems are sure to be
identified that will require changes to the system.
The data for the project is collect through General Observation Study and
collected data through it I got help from my senior colleagues for getting the data for the
project. I made a quantitative study regarding the title “balanced scorecard as
performance management Tool” and tried to fit balanced scorecard technique to the
organizational metric.
3.4 ZENTA BUSINESS MEASUREMENT SYSTEM
In ZENTA all business process operates separately under different BG’s it is classified
according to the nature of business. In Zenta there are five business groups
PRIMARY GOAL
VERTICAL GOAL
Goal flow
Individual goal
Figure 3.1
Figure 3.1
3.4. VISION AND MISSION BASED BALANCED SCORECARD
The May 2007 realignment of the Company’s services under the Zenta brand reflects the
new corporate vision of building a world-class Knowledge and Business Process
Outsourcing Company focused on the real estate and financial services industries. As a
fully integrated global enterprise, Zenta now offers real estate and financial services
customers a broad array of services from its centers of excellence around the globe.
Financial objective
• High return on
investment
• Borden revenue Mix
Customer objective
• Improve customer
retention
• Deliver high
quality service
Business process
(Innovation cycle)
• Reduction in
cycle time
Business process
(Operational cycle)
• Achieve high CU
• Improve FTE competency
STAFF SKILLS
Improvement
Learning and growth
Objective
• vision communication
• Increase training Hrs Increase information
asset
Figure 3.2
3.5 BALANCED SCORECARD FOR ZENTA
The balanced scorecard framework for Zenta is formulated with the help of above
strategies given in the balanced scorecard approach figure. The final balanced scorecard
is shown in the table given below. This include two important strategies they are
• Strategic objective
• Strategic measurement
3.5.1 Strategic objective:
Strategic objective consist of four perspectives along with the metrics calculated
in Zenta this strategic objective is framed with help of vision and mission of the
company.
Financial perspective
In financial perspective balanced scorecard comprises of three important metric
which is considered in Zenta they are
• Improve financial Returns
o Broaden Revenue Mix
o Reduce cost Structure
To achieve higher financial returns there should be more area for revenue generation
which also helps organization to grow. Reduce cost structure is productivity term to
control cost in organizational process high cost reduction will impact in quality of the
service provided to the customers this will the lagging indicator.
Customer perspective
In customer perspective table has increase in customer satisfaction through
superior execution is the strategic objective (These objectives are considered for Zenta).
To increase CSAT employee in the organization should be well trained how to handle the
customer. How to serve them but making in depth relationship will be challenge so this
will be in lagging indicator. There should a proper execution of service this will result in
high customer retention so market share in the segment will go up this will the leading
indicator.
Internal business process
In Zenta I am considering six internal businesses metric to measure balanced
scorecard. The considered metric are
• Understand Customer Segments
• High Capacity Utilization
• Asset Utilization
• FTE Competency
• Cycle Time Reduction
• Provide Rapid Response
These metrics are considered is to cover all the business area in the company. Provide
rapid response is only for internal communication purpose, not with external customers.
Leading indicator
In balanced scorecard leading indicators are the performance drivers which makes
company profitable. The leading indicator makes company to act according to the
strengths this will help them to achieve more in the market place. In strategic
measurement leading indicator will tell the strength of the company which was shown in
table below.
TABLE: 1 (BALANCED SCORECARD OF ZENTA)
Strategic Measurement
Strategic Objective
Lagging Indicators Leading Indicators
FINANCIAL PERSPECTIVE
Improve returns ROI
Broaden revenue Mix Revenue growth Revenue mix
Reduce cost Structure Quality reduction Process Improvement Through
Kaizen and Lean tool
CUSTOMER PESPECTIVE
Increase Customer Satisfaction CRM Share of the segment
Through Superior Execution
INTERNAL BUSINESS
PROCESS
Understand Customer Segments Meeting Client Targets
High capacity utilization Business volume
Asset utilization No Tracking system
FTE competency Remedial training
Cycle time reduction Application Tracking Statistical Measure
Provide Rapid Application
Response(internal) Tracking(Track IT)
LEARNING AND GROWTH
Increase Employee Productivity Efficiency Drivers Application Support
Develop Strategic Skills Attrition Effective Work force
Access to Strategic Information Application
Restriction
Align Personal Goals Good Performance Appraisal
Seat
utilization
Financial perspective
Figure 3.3
Transportation is simple metric but it will also impact in customer satisfaction and
retention. Transportation cost is considered as one of the key metric in financial
perspective of the company. Vehicle seat utilization is considered for knowing the total
number of employee using the company transport and how much the company paying for
it. Average travel time is calculated to identify to satisfaction level of the employee.
Average travel time: Time taken by the employee to reach destination from work place.
When average travel time for an employee is high it will lead to low employee morale.
Vehicle Seat Utilization: rate of occupancy of vehicles for a given route. If vehicle seat
utilization is high then transportation cost is lower but average travel time will be higher.
Average
Travel
Time
Transportat
ion Cost Customer perspective
Financial perspective
Vehicle Seat
Utilization
Employees are considered as important asset for any organization. Skill set for
any employee plays an important role in organizational development. All the employees
are trained according to the requirement of the respective business group. This training
makes the employee to be efficient in the work flow. Efficiency is considered as internal
business process metric when efficient employee is working in the process then there will
no deviation from turnaround time (TAT). With low skills of the FTE’s the process time
will be more and this will lead to increase in the TAT.
Efficiency
of work
Internal business process
Deviation
from TAT
Customer perspective
Revenue
Generation
Financial perspective
Figure 3.5
Skill per FTE (IT): the basic information technology skills which employees posses.
This will help in improving productivity or efficiency. The skill per FTE is increased
with help of training given by the organization.
Deviation from TAT: it refers to the increase in process time from the regular cycle
time. In order to meet desired TAT employees has to be trained as per requirement.
Revenue generation: Deviation from TAT is inversely proportional to revenue
generated. With the effective skills of employees the process time will get reduce, which
increases the workflow efficiency, which helps in revenue generation.
Competenc
y per FTE
Resource
utilization
On time
Learning and growth
delivery
Profitabilit
y
Internal business process
Customer perspective
Financial perspective
Figure 3.6
Defective
units
Internal business process
Cost of
rework Financial perspective
Figure 3.7
Cost of rework: Rework cost is the standard or actual cost that is spent on correcting
defective work. Rework cost is an unnecessary and additional cost for the organization,
which affects overall operating costs.
The term asset utilization means proper utilization of internal facilities to the greater
extent. Higher asset utilization increases the profitability and decreases the overall
expense incurred by the organization.
CHAPTER 4
FORMULATING STRATEGIES
Financial perspective
Broaden
RevenueMix
4.3 ACHIVING STRATEGIC ALIGNMENT: FROM TOP TO BOTTOM
Clarifying and
Translating the
Vision and Strategy
Communicating
Balanced Strategic feedback
and Linking
scorecard and learning System
Figure 4.3
There are three distinct mechanisms are used in this method they are
APPENDIX
BIBLIOGRAPHY
• The balanced scorecard “translating strategy into action” by Robert S. Kaplan and
David P. Norton
• www.balancedscorecard.org/.../AbouttheBalancedScorecard/.../Default.aspx -
• en.wikipedia.org/wiki/Balanced_scorecard
• http://management.energy.gov/documents/BalancedScorecardPerfAndMet