BSC - Developing a Balanced Scorecard with System Dynamics...

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Unformatted text preview: Developing a Balanced Scorecard with System Dynamics Prepared for: Professor Introduction • Balanced Scorecard (BSC) : a performan ce measurement system with an integrate d set of financial and non-financial measur es introduced by Harvard Professors John son and Kaplan several decades ago. • The BSC has become a topic of considera ble interest in both the business world and in academia. • It originates from the field of Management Accounting, and has quickly become popul Current BSC Theory and Practic e • Instead of relying solely on financial measures , a scorecard translates the vision and strateg y of a business unit into objectives and measu res in four different areas: 1. The financial perspective : how the company wishes to be viewed by its shareholders; 2. The customer perspective: how the company wishes to be viewed by its customers; 3. The internal business process perspective : in which pro cesses the company must excel in order to satisfy its s hareholders customers; • A BSC links measures of process performance, or key perf ormance indicators (KPI’s) , together in a casual chain that leads through all four perspectives. Current BSC Theory and Practic e cont. Influence Act Upon Drive Enhance Introduction cont. Conventional Measures Balanced Scorecard Criticism Have to work through piles of statistics Simplicity: Focus on monitoring three to five measures for each of the four perspectives. How can one be sure that the few ones selected are indeed the right ones?...
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This note was uploaded on 11/22/2011 for the course BUS 306 taught by Professor Anhnamsung during the Spring '11 term at Solano Community College.

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BSC - Developing a Balanced Scorecard with System Dynamics...

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