Presentation on scorecard

Submitted by: Damanjot kaur

M.Com 2nd
sem
15192102
Submitted to: Ramandeep
kaur
(Asst. prof)

Balance scorecard
The Balanced Scorecard concept is a
management and measurement
system which enables organizations to
clarify their vision and strategy and
translate them into action. The goal of
the balanced scorecard is to tie
business performance to organizational
strategy by measuring results in four
areas: financial performance, customer
knowledge, internal business
processes, and learning and growth.

The 4 perspectives of the Balanced

Scorecard
The Balanced Scorecard method of Kaplan
and Norton is a strategic approach, and
performance management system, that
enables organizations to translate a
company's vision and strategy into
implementation, working from 4 perspectives:
Financial perspective.
Customer perspective.
Business process perspective.
Learning and growth perspective

Benefits of the Balanced

Scorecard
Kaplan and Norton cite the following benefits of the
usage of the Balanced Scorecard:
Focusing the whole organization on the few key
things needed to create breakthrough performance.
Helps to integrate various corporate programs. Such
as: quality, re-engineering, and customer service
initiatives.
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.

The Financial Perspective

Kaplan and Norton do not disregard the traditional
need for financial data. Timely and accurate funding
data will always be a priority, and managers will make
sure to provide it. In fact, there is often more than
sufficient handling and processing of financial data.
With the implementation of a corporate database, it is
hoped that more of the processing can be centralized
and automated. But the point is that the current
emphasis on financial issues leads to an unbalanced
situation with regard to other perspectives. There is
perhaps a need to include additional financial related
data, such as risk assessment and cost-benefit data, in
this category.

The customer perspective

Recent management philosophy has shown
an increasing realization of the importance
of customer focus and customer satisfaction
in any company. These are called leading
indicators: if customers are not satisfied,
they will eventually find other suppliers that
will meet their needs. Poor performance
from this perspective is thus a leading
indicator of future decline. Even though the
current financial picture may seem (still)
good. In developing metrics for satisfaction,
customers should be analyzed. In terms of
kinds of customers, and of the kinds of

The Business Process perspective

This perspective refers to internal business
processes. Measurements based on this
perspective will show the managers how well
their business is running, and whether its
products and services conform to customer
requirements. These metrics have to be
carefully designed by those that know these
processes most intimately. In addition to the
strategic management processes, two kinds of
business processes may be identified:
Mission-oriented processes. Many unique
problems are encountered in these processes.
Support processes. The support processes are
more repetitive in nature, and hence easier to

Learning and Growth perspective

This perspective includes employee training and

corporate cultural attitudes related to both
individual and corporate self-improvement. In a
knowledge worker organization, people are the
main resource. In the current climate of rapid
technological change, it is becoming necessary for
knowledge workers to learn continuously.
Government agencies often find themselves unable
to hire new technical workers and at the same time
is showing a decline in training of existing
employees. Kaplan and Norton emphasize that
'learning' is something 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

HR and the Balanced

Scorecard
One effective approach to the measurement if the
strategic performance of organisations, including
their IIR departments, is the balanced scorecard.
The balanced scorecard is a framework
organizations use to report on a diverse set of
performance measures. Organizations that use a
balanced scorecard recognize that focusing strictly
on financial measures can limit their view. The
balanced scorecard balances financial and
nonfinancial measures so that managers focus on
long-term drivers of performance and
organizational sustainability.

 Financial measures: Traditional financial measures

such as profit and loss, operating margins, utilization
of capital, return on investment, and return on assets
are needed to ensure that the organization manages
its bottom line effectively.
Internal business processes: Product and service
quality, efficiency and productivity, conformance with
standards, and cycle times can be measured to ensure
that the operation turns smoothly and efficiently.
Customer relations: Customer satisfaction, loyally, and
retention are important to ensure that the
organization is meeting customer expectations and
can depend on repeat business from its customers.
Learning and growth activities: Employee training and
development, mentoring programs, succession
planning, and knowledge creation and sharing provide
the necessary talent and human capital pool to ensure

Thank you