Balanced Scorecard

2008-09-16T05:22:00.000-07:00

For everything you wanted to know on building leadership and management, refer Shyam Bhatawdekar’s website: http://shyam.bhatawdekar.com

(Refer our High Quality Management Encyclopedia “Management Universe” at: http://management-universe.blogspot.com/)

History

Robert S Kaplan and David P Norton published series of articles on "Balanced Scorecard" in 1993
They published a book titled "The Balanced Scorecard" in 1996

Important Organizational System

Strategic management approach.
Performance management approach.
Operational activities of an organization are aligned with organization's top level vision, strategy and objectives.
Executes and monitors the organizational strategy and objectives by using a combination of financial and non-financial measures.
Financial outputs are measured along with what influenced the financial objectives like the investments in customers, suppliers, employees, processes, technology, and innovation.
So a balance is maintained between financials and the other factors of business.

(Also refer: corporate strategic management at: http://strategic-managing.blogspot.com/ and strategic functions of HRM at: http://strategic-functions-hrm.blogspot.com/ and http://hrm-dynamics.blogspot.com/)

Perspectives

View an organization from the four perspectives given below:

Learning and Growth
Business Processes
Customer
Financial

Process of Implementation

Put the vision and strategy of the organization in the center and work out all the other details from the above-mentioned four perspectives around them.
Under each perspective ask questions as given against each bullet below and decide objectives, measures, targets and initiatives for that specific perspective.
Financial perspective: What should we do to succeed financially with reference to our stake holders? What will be our objectives? How will we measure? What are the quantifiable targets then? What initiatives should we adopt to go about achieving them?
Customer perspective: How should we relate to our customers to meet the top level vision and in line with strategies? Then decide about objectives, measures, targets and initiatives as we did for financial perspectives.
Business processes perspective: What business processes we should be best at and improve in order to satisfy the stake holders and customers? Subsequently decide the objectives, measures, targets and initiatives in businesses processes area.
Learning and growth perspective: How will we ensure sustenance to learn, improve and grow to meet the vision? Then, work out the objectives, measures, targets and initiatives for this.
These processes should be followed at each hierarchical level of an organization.
The appraisal of departments and people can be done by scoring out the actual performances vis-a-vis planned. Also, corrective actions can be initiated in time.

For More Guidance, Assistance, Training and Consultation

Contact: prodcons@prodcons.com

Training on "Balanced Scorecard" is imparted by Mr Shyam Bhatawdekar and/or Dr (Mrs) Kalpana Bhatawdekar, eminent management educationists, management consultants and trainers- par excellence, with distinction of having trained over 150,000 people from around 250 organizations. Implementation of "Balanced Scorecard" system is also facilitated by the team of Prodcons Group.

Also refer: http://prodcons-group.blogspot.com/, http://training-development-function.blogspot.com/ and http://productivity-consultants.blogspot.com/

Other Topics of Interest

Balanced Scorecard: Important Management Initiative

2008-09-14T08:35:00.000-07:00

Balanced Scorecard is one of the important management initiatives in recent times.

Watch out for this space. Soon you will see a concise and precise and yet comprehensive treatise on Balanced Scorecard.

The write-up here will allow you to get a complete understanding of this important system and you will get a complete picture of what this system is and how to go about implementing it in business and industrial organizations.