...of directors: 1. Approve and monitor the enterprise’s strategy, created and formulated by CEO and Executive Leadership Team 2. Approve major financial decisions 3. Select the chief executive officer, evaluate the CEO and senior executive team, ensure executive succession plans 4. Provide counsel and support to the CEO 5. Ensure compliance However, board of directors often fall short in carrying out their five responsibilities due to limited time they have available, and the inadequate information provided to them. The board members, burdened by limited time and limited information, can participate in a more effective and efficient governance process by implementing Balanced Scorecard program. The program starts with an Enterprise Scorecard enabling the board to become more informed about the enterprise’s strategy so that it can perform better its responsibilities. The board can also create a Board Scorecard, which defines its primary outcomes, board processes, and skills, information, and meeting dynamics for more effective governance. Finally, executive scorecards enable the Board to evaluate the performance of each senior executive and his or her succession plans. Enterprise Balanced Scorecard Enterprise Scorecard describes the strategy of the organization, including strategic objectives, performance measures, targets, and initiatives. The enterprise scorecard has a dual role. First, and primarily, it is a powerful internal communication and alignment tool that...
Words: 1298 - Pages: 6
...www.hbrreprints.org BEST OF HBR Using the Balanced Scorecard as a Strategic Management System by Robert S. Kaplan and David P Norton . • Included with this full-text Harvard Business Review article: 1 Article Summary The Idea in Brief—the core idea The Idea in Practice—putting the idea to work 2 Using the Balanced Scorecard as a Strategic Management System 14 Further Reading A list of related materials, with annotations to guide further exploration of the article’s ideas and applications Reprint R0707M BEST OF HBR Using the Balanced Scorecard as a Strategic Management System The Idea in Brief The Idea in Practice Why do budgets often bear little direct relation to a company’s long-term strategic objectives? Because they don’t take enough into consideration. A balanced scorecard augments traditional financial measures with benchmarks for performance in three key nonfinancial areas: The balanced scorecard relies on four processes to bind short-term activities to long-term objectives: • a company’s relationship with its customers • its key internal processes • its learning and growth. COPYRIGHT © 2005 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED. When performance measures for these areas are added to the financial metrics, the result is not only a broader perspective on the company’s health and activities, it’s also a powerful organizing framework. A sophisticated instrument panel for coordinating ...
Words: 6507 - Pages: 27
...Robert S. Kaplan (rkaplan@hbs.edu) is the Baker Foundation Professor at Harvard Business School. David P. Norton (dnorton@ thepalladiumgroup.com) is the founder and president of the Balanced Scorecard Collaborative, Palladium Group, in Lincoln, Massachusetts. Bjarne Rugelsjoen (bjarne@rugelsjoen.no) is a director at GoalFocus, a performance-coaching consultancy based in London. Managing Alliances with the Balanced Scorecard Fifty percent of corporate alliances fail. But you can increase your partnership’s odds of success by applying these techniques. by Robert S. Kaplan, David P. Norton, and Bjarne Rugelsjoen 114 Harvard Business Review January–February 2010 HBR.ORG C ILLUSTRATION: BRETT RYDER orporate alliances are a 50/50 bet—at least according to a recent study by McKinsey & Company, which found that only half of all joint ventures yield returns to each partner above the cost of capital. That’s worrying, given that partnerships and alliances are central to many companies’ business models. Originally used to outsource noncore parts of supply chains, alliances today are expected to generate a competitive advantage. So it is necessary to dramatically improve their odds of success. Why do alliances fail so often? The prime culprit is the way they are traditionally organized and managed. Most alliances are defined by service level agreements (SLAs) that identify what each side commits to delivering rather than what each hopes to gain from the partnership...
Words: 3927 - Pages: 16
...Communications of the Association for Information Systems Volume 17 Article 8 2-23-2006 Using the Balanced Scorecard to Achieve Sustained IT-Business Alignment: A Case Study Qing Hu Florida Atlantic University, qhu@fau C. Derrick Huang Florida Atlantic University, dhuang@fau Follow this and additional works at: http://aisel.aisnet.org/cais Recommended Citation Hu, Qing and Huang, C. Derrick (2006) "Using the Balanced Scorecard to Achieve Sustained IT-Business Alignment: A Case Study," Communications of the Association for Information Systems: Vol. 17, Article 8. Available at: http://aisel.aisnet.org/cais/vol17/iss1/8 This material is brought to you by the Journals at AIS Electronic Library (AISeL). It has been accepted for inclusion in Communications of the Association for Information Systems by an authorized administrator of AIS Electronic Library (AISeL). For more information, please contact elibrary@aisnet.org. Communications of the Association for Information Systems (Volume 17 2006) 181- 204 181 USING THE BALANCED SCORECARD TO ACHIEVE SUSTAINED IT-BUSINESS ALIGNMENT: A CASE STUDY Qing Hu C. Derrick Huang Department of Information Technology & Operations Management Florida Atlantic University qhu@fau.edu ABSTRACT High levels of investments in IT and related products and services by firms over the last several decades produced only mixed results. Research shows that one of the most significant determinants of successful IT investments...
Words: 12986 - Pages: 52
...internal environmental scan or organizational assessment, provides the ability to put the strategy audit together. In this module, you will conduct a comprehensive assessment of the internal environment at your business unit or organization you are working with for this project, also known as an organizational assessment, and present your findings in a report. In your report, you should analyze the operating characteristics and assets of your business unit. The SWOT model is one of the most common business tools used during organizational assessment. Another is developing a balanced scorecard based on a prescribed or planned set of performance objectives that will be measured and evaluated regularly. In this assignment, based on the external environmental scan you conducted in M2: Assignment 2 and the internal environmental scan in this assignment, you will develop a SWOT analysis and a balanced strategic scorecard. Part I: Internal Environmental Scan (2–3 pages) The internal environmental scan or organizational assessment should include the following: • Mission, vision, and values: Assess the organization’s understanding of the mission, vision, and values, and how they relate the business strategy. Is there consensus on the mission and vision of the organization? What are the shared values of the organization? What are the behaviors espoused by these values? • Strategy clarification: Assess the organization’s understanding of the business strategy through the interview with...
Words: 1140 - Pages: 5
...Balanced Scorecard The BSC is a planning & management system which can be widely applied to organizations and companies regardless of size or type of business. The technique, extensively used in business and industry, government, and non-profit organizations worldwide, provides a method of aligning business activities to the vision & strategy of the organization, integrating internal & external communications, & keeping a watch on organization performance against strategic goals. It was developed by Robert Kaplan and David Norton of Harvard University in 1990. The line of the balanced scorecard runs deep, and include the revolutionary and path breaking work of General Electric on performance measurement coverage in the late 1950’s and the work of French engineers in the early part of the 20th century in France. Due to the fact that balanced scorecard term is a generic, it is interpreted differently by different people, and in practice, there are wide variations in both understanding and implementation. To some, the balanced scorecard is just a simple control panel indicating performance measures, while to others it is a inclusive planning and management system encompassing the whole organization and planned to focus efforts on business strategy and more significantly on performance and results. The balanced scorecard has steadily developed from its early use as a simple performance measurement framework for non-financial performance measures to a full strategic planning and...
Words: 2310 - Pages: 10
...Executive Summary of the board PepsiCo has had consistently positive financial results in a very competitive and price sensitive marketplace. We believe that the company is well positioned to continue to meet its sales and revenue targets while maintaining profit margin. However, we think that in order to remain ahead of our competitors, our investment looking forward needs to be in our greatest asset, our employees. The introduction and roll out of the balanced scorecard method to create an individually responsive and responsible organization that exceeds our upcoming aggressive performance targets. The balanced scorecard is a tool that we believe will align individual objectives with business objectives to ensure the continued success of PepsiCo. The following information describes where we are today as an organization, what the balanced scorecard can do for our organization, and some critical success factors to address during implementation. PepsiCo in brief: PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. In the year of 1998 PepsiCo then acquired Tropicana and in the year 2001 Quaker Oats and Gatorade. The company consists of four subsections; Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International and Quaker Foods North America. The products are available in 200 countries and even have some brand names that are more than 100 years old. PepsiCo employs 153,000 people that follow a mission, "To be the world's premier consumer...
Words: 3847 - Pages: 16
... Topic: Recent Balance Scorecard Theory & Practices Of Bangladeshi Company SUBMITTED TO: Md. ABUL KASHEM Associate professor SUBMITTED BY: RIFFAT ARA RAFIQ; ID: 61018-11-061 SESSION: Fall’ 2011 DATE OF SUBMISSION: 26th DECEMBER ’2011 DEPARTMENT OF MANAGEMENT INFORMATION SYSTEM Acknowledgement I express my gratefulness to Almighty Allah for his kindness, which enabled us to complete this work properly and in time I am grateful to our course teacher, Md. Abul Kashem, Associate Professor , Department of Management information system, University of Dhaka for providing us all the information about information technology, for his guidance, constructive criticism, valuable suggestions and untiring help throughout the course of this work. I am highly delighted to express our cordial gratitude and veneration to our parents for their constant help, affection support and sacrifices. The Author December 26th , 2011 Letter of transmittal Date: 26/12/2011 To, Md. Abul Kashem, Associate Professor Department of Management Information System, University of Dhaka. Sub: Application for the submission of Term Paper. Sir, I respectfully state that, I am a student of EMBA program in this department at the session of spring’2011.you have asked for the term paper on 28th November’2011. The topic of this assignment is Balance Scorecard theory & practice. The last date...
Words: 6477 - Pages: 26
...Guide to a Balanced Scorecard: Performance Management Methodology Guide to a Balanced Scorecard Performance Management Methodology Richard H. Hopf Deputy Assistant Secretary for Procurement and Assistance Management Department of Energy David J. Litman Director, Office of Acquisition and Grants Management Department of Transportation Lloyd W. Pratsch Procurement Executive Department of State Ida M. Ustad Deputy Associate Administrator for Acquisition Policy General Services Administration Robert A. Welch Director for Acquisition Management and Procurement Executive Department of Commerce Terrence J. Tychan Deputy Assistant Secretary for Grants and Acquisition Management Department of Health and Human Services Pauk A. Denett Director of Administration/Senior Procurement Executive Department of Interior Moving from Performance Measurement to Performance Management Guide to a Balanced Scorecard: Performance Management Methodology Preface T he members of the Procurement Executives’ Association (PEA) - an informal association of civilian procurement executives - have redesigned their programs for performance evaluation and management of acquisition systems. They have moved from headquartersbased, process-oriented oversight programs to ones which rely more on self or local assessment of performance against departmental or agency expectations. Through the use of assessment approaches based on performance measurement models developed by a federal...
Words: 20692 - Pages: 83
...1 A problem with rewarding managers only on the basis of residual income is that: c.residual income can depend on items over which the manager has little control 2. Relative performance evaluation: a. is called benchmarking, b. filters out the effect of common non-controllable factors; c. results in managers having no incentive to help one another; d. All of these answers are correct. Answer: d. 3. The return on investment is usually considered the most popular approach to incorporating the investment base into a performance measure because:a, it blends all the ingredients of profitability into a single percentage. 4 During the past twelve months, the Aaron Corporation had a net income of $50,000. What is the amount of the investment if the return on investment is 20%? C.250000. 5. A problem with using residual income is that a corporation with a:c. larger dollar amount of assets is likely to have a higher residual income than a corporation with a smaller dollar amount of assets.6. The return on investment can be defined as: c.Total capital invested divided by profit.7. Calculate the return on investment of new equipment in the first year if: Profit = $3,000,000, Invested capital = $45,000,000, Increase in divisional profits = $45,000 Purchase of new machine = $900,000:a.5%. 8. For Echuca Ltd sales are $1,500,000, profit is $90,000, invested capital is $450,000 and the interest rate is 8%. What is the residual income for the year?b.$54000. 9. Tentafield Ltd has an after tax operating...
Words: 2452 - Pages: 10
...The Execution Premium: Linking Strategy to Operations for Competitive Advantage Q&A with HBS professor Robert S. Kaplan by Martha Lagace Companies often manage strategy in fits and starts. Though executives may formulate an excellent strategy, it easily fades from memory as the organization tackles day-to-day operations issues, doing what HBS professor Robert S. Kaplan calls "fighting fires." A new book due in August by Kaplan and David P. Norton aims to make strategy a continual process. The Execution Premium: Linking Strategy to Operations for Competitive Advantage (HBS Press) shows managers how to weave organizational principles into a more effective management system that respects the differences between strategy and operations yet integrates them in a powerful way. Kaplan and Norton introduced the Balanced Scorecard, a performance measurement system, in 1992. The Execution Premium is their fifth book as coauthors. Kaplan recently explained the ideas behind The Execution Premium and how they bridge the common divide between strategy and operations. Q: What particular issues around execution need to be better addressed in business? A: There are two key issues. First is leadership. Without strong visionary leadership, strategy will not be executed effectively. The second key issue is to recognize that strategy and operations (or tactics) are both important but different. The normal course of events is for companies to focus on day-to-day operations and short-term problem solving...
Words: 2607 - Pages: 11
...Chapter 01 Human Resource Management: Gaining a Competitive Advantage True / False Questions 1. | Companies have historically looked at HRM as a means to contribute to profitability and quality. True False | 2. | Orientation and skills training are responsibilities of HR personnel involved in analysis and design of work. True False | 3. | The three product lines of HR as a business are administrative services and transactions, business partner services, and strategic partner roles. True False | 4. | The amount of time that the HRM function devotes to administrative tasks is decreasing, and its role as a strategic business partner is increasing. True False | 5. | Advances in technology have decreased HRM's role in providing self-service to employees. True False | 6. | HR functions related to benefits administration such as health plan eligibility status, relocation, and payroll are usually not outsourced. True False | 7. | When a firm shifts to evidence-based HRM, it should stop using workforce analytics. True False | 8. | Evidence-based HR refers to the demonstration that human resources practices have no impact on the company's bottom or key stakeholders. True False | 9. | Intangible assets are equally or more valuable than financial and physical assets, but they are difficult to duplicate or imitate. True False | 10. | In a learning organization, improvements...
Words: 16241 - Pages: 65
...writing Report Writing Effective Learning Service Report Writing Bradford University School of Management Report Writing REPORT WRITING A report is a form of communication in one or more of the following ways: Written form Verbal form Audio-visual form A report is a form of communication that will do one or more of the following: describes analyses summarises criticises or praises makes predictions about … a subject and is based on an analysis of current or past events or identifiable phenomena. If you are studying on an undergraduate or postgraduate course you will be expected to write reports and to present findings in both written and verbal and/or audio/visual forms. You will, for example, write reports: • • • • for module assignments, e.g. case study reports presenting the results of an individual research project summarising the result of a group project and presentation reflecting on a work experience or other placement you were involved in Effective Learning Service 1 Bradford University School of Management Report Writing What’s the difference between a report and an essay? There are two main differences: aim and presentation. Aim Essays give you more opportunity to expand on possibilities, ideas or concepts. Reports deal with describing and/or analysing actual past events. Reports can be written that make predictions or recommendations for the future, but these are usually the result of an analysis of past events or of current or...
Words: 7456 - Pages: 30
...A BALANCED SCORECARD APPROACH TO PROJECT MANAGEMENT LEADERSHIP JAMES NORRIE, director, School of Information Technology Management, Ryerson University, Toronto, Canada; and Doctor of Project Management candidate, RMIT University, Melbourne Australia. DEREK H. T. WALKER, professor of Project Management and program director for Doctor of Project Management, RMIT University, Melbourne, Australia. ABSTRACT In this paper, we discuss ways that project managers can use measurement (using a tool such as the balanced scorecard) to improve the operational performance of their project teams. Project managers will see that attaching measures to outcomes clarifies project objectives and supports well-defined and well-communicated links between the project vision and business strategy. These also enable project managers to more effectively monitor and control project activities for the purpose of improving project results. This paper reinforces the importance of strategy as an added dimension to the traditional triple constraint. We present this information through our comparison and survey of two projects undertaken by project teams at a large North American global telecommunications organization. The results of our study provide early evidence of the usefulness of the balanced scorecard (BSC) as a tool for improving project management effectiveness. Our study also shows that balanced performance measurement is an important technique for establishing on-strategy project delivery. We propose...
Words: 7864 - Pages: 32
...A PROPOSAL ON HOW TO APPLY THE BALANCED SCORECARD TO THE COLLECTIVE INVESTMENT MANAGERIAL FIRMS. Muñoz Colomina, Clara I. Urquía Grande, Elena Sevillano Martín, Fco. Javier (Universidad Complutense de Madrid) PAPER FINANCED BY THE PROJECT PR1/03-11669 OF THE UNIVERSITY COMPLUTENSE OF MADRID A PROPOSAL ON HOW TO APPLY THE BALANCED SCORECARD TO THE COLLECTIVE INVESTMENT MANAGERIAL FIRMS. Muñoz Colomina, Clara I. Urquía Grande, Elena Sevillano Martín, Fco. Javier (Universidad Complutense de Madrid) Collective investment companies, as other institutions in the financial sector, are actually going through moments of great volatility. Consequently these firms need to reformulate their strategic forecast for the next years. This need arises, among other factors, from the collapse of global financial markets, progressive liberalizations in tax and company regulation and the evolution in information technology. Collective investments are very appealing for small investors, as they allow them to benefit from the skills of a professional management, as well as to spread different risks with a diversified portfolio in the different mutual funds. Nevertheless in moments of crisis such as the world is experiencing now, the great volatility of markets and capital losses clearly offset the attractiveness of the portfolio management. The starting point is to take into account the new scenario now developing in collective investment management firms: increasing competence, less captive...
Words: 7509 - Pages: 31
