The rational for introducing a performance scorecard falls within two extremes (1). At one end, some firms may see scorecards as simply a “framework for grouping existing measures into categories, and displaying the measures graphically (1)” which permits senior management to track items of interest and gauge operational performances. On the other end, a scorecard can be used as a “robust organization-wide strategic planning, management and communications system” which among other things “align
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Shannon and William N. Lanen 91999): Strategic Planning at Five World-Class Companies, Management Accounting, Volume 17, Number 1, July Anand, Manoj, B. S. Sahay and Subhashish Saha (2005): Balanced Scorecard in Indian Companies, Vikalpa, Volume 30, Number 2, April – June. Batra, R. (2006): The Balanced Scorecard: An Indian Perspective, ICFAI Journal of Management Research, Volume 5, Number 8. Baldwin, C and Clark, K (1992). “Capabilities and Capital Investment: New Perspectives on Capital Budgeting
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MANAGING FOR THE LONG TERM | BEST OF HBR | January–February 1996 Using the Balanced Scorecard as a Strategic Management System Editor’s Note: In 1992, Robert S. Kaplan and David P. Norton’s concept of the balanced scorecard revolutionized conventional thinking about performance metrics. By going beyond traditional measures of financial performance, the concept has given a generation of managers a better understanding of how their companies are really doing. These nonfinancial metrics
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Electric Utility, Inc. – Balanced Scorecard Example Objectives Measures (D=Drivers) FY01 Customer Financial •Maximize returns •Profitable growth •Leverage asset base •Manage operating costs •Industry leading customer loyalty •ROCE •Revenue growth •Asset utilization rate •Operating costs / customer •Customer Satisfaction Rating 14% 6% 80% $150 80% Targets FY02 14.5% 8% 85% $140 85% Initiatives FY03 15% 12% 90% $125 90% •Customer loyalty program Business Growth •Capitalize on deregulation
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he Balanced Scorecard (BSC) is a strategy performance management tool - a semi-standard structured report, supported by proven design methods and automation tools, that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions.[1] It is perhaps the best known of several such frameworks (it is the most widely adopted performance management framework reported in the annual survey of management tools undertaken
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hospital, outpatient services, and nursing homes. This causes challenges for hospital executives to align the organizational strategies and main principles with performance measurement and management indicators within all areas of service. The balanced scorecard (BSC) is an option for hospitals to measure not only a company’s financial performance but how the company is satisfying its customers and employees. The BSC is designed to manage strategy not tactics (Kocakulah 2007). As of the year 2000
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Bringing the Balanced Scorecard to Life: The Microsoft Balanced Scorecard Framework White Paper By: Charles Bloomfield Insightformation, Inc. Published: May 2002 For the latest information, please see http://www.microsoft.com/business/bi/ Abstract This paper describes the Microsoft® approach to developing and implementing a Balanced Scorecard for enterprise performance management. It presents basic information on the Balanced Scorecard performance management
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Linking the balanced scorecard to strategy 1. Managers need to operate multiple measurements of business-unit performance 2. BSC * Most of non-financial measures have limitations (e.g. customer satisfaction, employee attitude) a. Only report how worked in the past, but no guidance on how to operate in the future. b. Measures are genetic, irrelevant to specific strategy objects * Measures on a BSC should be derived from the business-unit’s unique strategy (translate the vision
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Summary Chapter 4: ‘’Dimensions of organisation structure’’ A central question in this chapter is how to actually compare organisations and its structures. One thing to do is to look at the complexity of the organisation. Complexity is the degree of differentiation within an organisation. Horizontal differentiation indicates the number of different groupings within organisations. Vertical differentiation indicates the number of hierarchy levels from the ‘’top’’ to the ‘’bottom’’ and spatial dispersion
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Business Model and Strategic Plan Part III: Balanced Scorecard and Communication Plan Business Model and Strategic Plan Part III: Balanced Scorecard and Communication Plan The balanced scorecard is vital for a healthy growing business. It is an essential component for defining the goals and targets of the business. "The Balanced Scorecard is a tool that is widely used to help a company achieve its financial objectives by linking them to specific strategic objectives derived from
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