Hi Guys, Can anybody send me a write up on Balance Scorecard. Require Urgently.
From India, Calcutta
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From India, Calcutta
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Hi, Please find attached a presentation on Balance Scorecard. In case of any doubts feel free to revert. Mallet
From India, Hyderabad
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41From India, Hyderabad
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It seems that I also have the same presentation posted by Mallet, anyways, attaching the same. Ranjit J. Pandya
From India, Ahmadabad
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From India, Ahmadabad
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Hi,
Check this out. It can be helpful to you. Please reply back in case you have doubts.
What is the Balanced Scorecard?
A new approach to strategic management was developed in the early 1990s by Drs. Robert Kaplan (Harvard Business School) and David Norton. They named this system the 'balanced scorecard'. Recognizing some of the weaknesses and vagueness of previous management approaches, the balanced scorecard approach provides a clear prescription as to what companies should measure in order to 'balance' the financial perspective.
The balanced scorecard is a management system (not only a measurement system) that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes to continuously improve strategic performance and results. When fully deployed, the balanced scorecard transforms strategic planning from an academic exercise into the nerve center of an enterprise.
Kaplan and Norton describe the innovation of the balanced scorecard as follows:
"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."
The balanced scorecard suggests that we view the organization from four perspectives and develop metrics, collect data, and analyze it relative to each of these perspectives:
1. The Learning and Growth Perspective
This perspective includes employee training and corporate cultural attitudes related to both individual and corporate self-improvement. In a knowledge-worker organization, people -- the only repository of knowledge -- are the main resource. In the current climate of rapid technological change, it is becoming necessary for knowledge workers to be in a continuous learning mode.
2. The Business Process Perspective
This perspective refers to internal business processes. Metrics based on this perspective allow the managers to know how well their business is running and whether its products and services conform to customer requirements.
3. The Customer Perspective
Recent management philosophy has shown an increasing realization of the importance of customer focus and customer satisfaction in any business.
4. The Financial Perspective
Kaplan and Norton do not disregard the traditional need for financial data. Timely and accurate funding data will always be a priority.
The Balanced Scorecard and Measurement-Based Management
The balanced scorecard methodology builds on key concepts of previous management ideas such as Total Quality Management (TQM), including customer-defined quality, continuous improvement, employee empowerment, and -- primarily -- measurement-based management and feedback.
Double-Loop Feedback
In traditional industrial activity, "quality control" and "zero defects" were the watchwords. In order to shield the customer from receiving poor quality products, aggressive efforts were focused on inspection and testing at the end of the production line.
Outcome Metrics
You can't improve what you can't measure. So metrics must be developed based on the priorities of the strategic plan, which provides the key business drivers and criteria for metrics that managers most desire to watch.
Management by Fact
The goal of making measurements is to permit managers to see their company more clearly -- from many perspectives -- and hence to make wiser long-term decisions.
Regards,
Skakkar
From India, Pune
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Check this out. It can be helpful to you. Please reply back in case you have doubts.
What is the Balanced Scorecard?
A new approach to strategic management was developed in the early 1990s by Drs. Robert Kaplan (Harvard Business School) and David Norton. They named this system the 'balanced scorecard'. Recognizing some of the weaknesses and vagueness of previous management approaches, the balanced scorecard approach provides a clear prescription as to what companies should measure in order to 'balance' the financial perspective.
The balanced scorecard is a management system (not only a measurement system) that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes to continuously improve strategic performance and results. When fully deployed, the balanced scorecard transforms strategic planning from an academic exercise into the nerve center of an enterprise.
Kaplan and Norton describe the innovation of the balanced scorecard as follows:
"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."
The balanced scorecard suggests that we view the organization from four perspectives and develop metrics, collect data, and analyze it relative to each of these perspectives:
1. The Learning and Growth Perspective
This perspective includes employee training and corporate cultural attitudes related to both individual and corporate self-improvement. In a knowledge-worker organization, people -- the only repository of knowledge -- are the main resource. In the current climate of rapid technological change, it is becoming necessary for knowledge workers to be in a continuous learning mode.
2. The Business Process Perspective
This perspective refers to internal business processes. Metrics based on this perspective allow the managers to know how well their business is running and whether its products and services conform to customer requirements.
3. The Customer Perspective
Recent management philosophy has shown an increasing realization of the importance of customer focus and customer satisfaction in any business.
4. The Financial Perspective
Kaplan and Norton do not disregard the traditional need for financial data. Timely and accurate funding data will always be a priority.
The Balanced Scorecard and Measurement-Based Management
The balanced scorecard methodology builds on key concepts of previous management ideas such as Total Quality Management (TQM), including customer-defined quality, continuous improvement, employee empowerment, and -- primarily -- measurement-based management and feedback.
Double-Loop Feedback
In traditional industrial activity, "quality control" and "zero defects" were the watchwords. In order to shield the customer from receiving poor quality products, aggressive efforts were focused on inspection and testing at the end of the production line.
Outcome Metrics
You can't improve what you can't measure. So metrics must be developed based on the priorities of the strategic plan, which provides the key business drivers and criteria for metrics that managers most desire to watch.
Management by Fact
The goal of making measurements is to permit managers to see their company more clearly -- from many perspectives -- and hence to make wiser long-term decisions.
Regards,
Skakkar
From India, Pune
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Can somebody please help me with the concept of Performance based salary? Fixed and Variable pay?
From India, Delhi
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From India, Delhi
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Neha,
Please search the web using Google and the keywords from your queries. If you do not find what you are after, I will try to look for that. Have a nice day.
Simhan
A retired academic in the UK
"It is never too late to learn or improve oneself"
- nehaashra
Can somebody please help me with the concept of performance-based salary? Fixed and variable pay?
From United Kingdom
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Please search the web using Google and the keywords from your queries. If you do not find what you are after, I will try to look for that. Have a nice day.
Simhan
A retired academic in the UK
"It is never too late to learn or improve oneself"
- nehaashra
Can somebody please help me with the concept of performance-based salary? Fixed and variable pay?
From United Kingdom
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Salary Break Up - Performance Pay.xls
More Fixed-To-Variab le Pay HR Trend in Corporate World.pdf
VARIABLE PAY.doc