presentation1cc-140220094550-phpapp01

presentation1cc-140220094550-phpapp01 - ROBERT S KAPLAN AND...

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THE BALANCE SCORECARD ROBERT S. KAPLAN AND DAVID P. NORTON ‘S TRANSLATING STRATEGY IN TO ACTION
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Robert Kaplan and David Norton first publicized the balanced scorecard in a series of journal articles and published this concept in their book, The Balanced Scorecard . Introduced in 1992, by Robert Kaplan and David Norton , the balance Scorecard is the most commonly used framework for ensuring that agencies execute their strategies. Today about 70% of the fortune 1000 Companies utilize the balance scorecard to help manage performance Where it started…..
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Developed in the early 1990’s by Dr. Robert Kaplan and David Norton "The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation."
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WHAT IS THE BALANCE SCORECARD BSC translates an organizational mission and strategy into comprehensive set of performance measures that provides the frame work for strategic measurement and Management system
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The Balanced Scorecard: Balances financial and non-financial measures Balances short and long-term measures Balances performance drivers (leading indicators) with outcome measures (lagging indicators) Should contain just enough data to give a complete picture of organizational performance… and no more! Leads to strategic focus and organizational alignment.
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The Balanced scorecard is a management system that enables organizations to clarify their vision and strategy and translate them into action . Provides an organization with feedback of both the internal business processes and external outcomes, which allows for continuous improvement of strategic performance and results. Nerve center of an enterprise
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Why is it important to build a scorecard that communicates a business unit’s strategy ? The scorecard describes the organization’s vision of the future to the entire organization. It creates shared understanding. The scorecard creates a holistic model of the strategy that allows all employees to see how they contribute to organizational success. Without such linkage, individuals and departments can optimize their local performance but not contribute to achieving strategic objectives. The scorecard focuses change efforts. If the right objectives and measures are identified, successful implementation will likely occur, if not investments and initiatives will be wasted.
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The balanced scorecard is centered on four performance metrics or perspectives: Customers Internal processes Financial Learning and growth When implemented properly, each one of these perspectives contains four subparts consisting of Objectives Measures Targets Initiatives
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