USING

THE BALANCED SCORECARD

FOR
IMPROVING QUALITY IN
EDUCATION

By
Professor Zia Ahmad Jan
Defence School of Business Education
 Objectives
• Examine the Balanced Scorecard as a
system of management and
measurement
• Describe an example of the Balanced
Scorecard in higher education
• Identify lessons learned in
implementing the balanced scorecard
INTRODUCTION
 WHAT IS BALANCED SCORECARD
• The balanced scorecard is a 4 dimensional
management system to help a business focus
on achieving financial results and on
creating future value through strategic
activities.
• It translates mission and strategy into four
dimensions -- customer, financial, internal
processes, and innovation and learning --
--and seeks measures for them.
• CUSTOMER : How do we become our
customers’ most valued supplier?
• INTERNAL PROCESSES: What
processes must we excel at to achieve our
objectives?
• INNOVATION AND LEARNING :
How can we continue to improve and create
value with employees, customers, and
processes?
• FINANCIAL : How do we look to
shareholders?
 Financial
Perspective
Objectives Measures
Improve Return on Sales
profitability Return on
Investment

Financial
Perspective Internal Business Processes
Objectives Measures perspective

Improve Repeat sales Objectives Measures

customer loyalty Response time Improve Error free order
per customer processing
request quality On time delivery

Learning & Growth

Perspective
Objectives Measures
Improve staff skills Employee
productivity
Hours of training per
employee
 Why Use A Balanced
Scorecard?
 No single measure is appropriate
 Financial results report past
performance but do not adequately
drive future performance .
 Organizations must link strategies and
objectives to a set of balanced measures
to clarify, communicate, and evaluate
 It operationalizes strategy into targets
 It helps focus the entire organization on
what must be done to create breakthrough
performance
 It helps integrate diverse programs
 It breaks corporate level measures down
into lower organizational levels to improve
effectiveness throughout the organization
 It provides a comprehensive and systems
view
 APPLICATION
 Customer Perspective  Financial Perspective
 Student satisfaction Operating income
 Employee satisfaction Total expenses
 Alumni satisfaction Research amount
Growth
 Institutional ranking
Annual gifts
 Innovation Perspective
Faculty/staff qualifications
 Internal Perspective
Clear mission and goals
 Faculty/staff satisfaction
Responsive structure
Research programs
Efficient work processes
 Learning environment
Effective support systems
 Knowledge management
How to Link Measurement To
Strategy & Vision
 What is my Statement of vision
mission & vision •Defining the organization
•Mission Statement.
of the future?
•Vision Statement

Financial Customer Internal Innovation &

What are Perspective Perspective Process learning
the goals? (for share (for Perspective perspective
holders) customers) (for staff) ( for all)

What are the -------------

strategies or
------------- ------------- -------------
critical ------------- ------------- ------------- -------------
success ------------- ------------- ------------- -------------
factors? ------------- ------------- ------------- -------------

What are the

------------- ------------- ------------- -------------
critical ------------- ------------- ------------- -------------
measurements? ------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
 Principles For Implementation

• Build an Executive Leadership Team to

Mobilize Change
• Translate the Strategy into Operational Terms
• Link and Align the Organization Around Its
Strategy
• Make Strategy Everyone’s Job
• Link Strategy and Budgeting
• Make Strategy a Continuous Process.
Conclusion