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1
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Balanced Scorecard
2

2- ????? ?????? ???????? ????

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• ?????? ?????? ??? ?? ???? ??????? ?????
  ?????????? ????? ???? ???? ?????????(???????)
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3

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????? ?? ??????? ???? ???? ?? ?????? ?? ??? ?????
???? ???? ???? ?????????? ??????... ???? ????
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Business Intelligence /Renaissance world wide
survey
4
2- ????? ?????? ???????? ????? ????? ??????
?????????

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?????? ?? ???? ?????? ??? ??? ????... ???? ??????
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BSC Collaborative
5
Traditional Performance Measurements
2- ????? ?????? ???????? ????? ????? ??????
?????????

• Measurements are not in tune with strategic
  objectives
• Measurements are not customer driven
• Financial measures concentrate on short-term
  objectives
• Many key nonfinancial performance measures are
  ignored

6
The Emergence of the BSC
2- ????? ?????? ???????? ????? ?????

• The Balanced Scorecard was originally proposed
  to overcome the limitations of managing with only
  financial measures, which report outcomes but do
  not communicate the drivers of future
  performance. The scorecard provides a framework
  for looking at a strategy from four different
  perspectives

7
The Balanced Scorecard
Management translates its strategy into
performance measures that employees understand
and accept.
Performancemeasures
8
Basics of the BSC
9
The Balanced Scorecard FromStrategy to
Performance Measures
Exhibit 10-11
Performance Measures
Financial Has our financialperformance improved?
What are ourfinancial goals?
What customers dowe want to serve andhow are we
going towin and retain them?
Vision and Strategy
Customer Do customers recognize thatwe are
delivering more value?
What internal busi-ness processes arecritical
to providingvalue to customers?
Internal Business Processes Have we improved key
business processes so that we can deliver more
value to customers?
Learning and Growth Are we maintaining our
abilityto change and improve?
10

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11

2- ????? ?????? ???????? ??????/??????
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12

2- ????? ?????? ???????? ??????/??????
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13

2- ????? ?????? ???????? ??????/??????
2
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4
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14
The Balanced ScorecardNon-financial Measures
The balanced scorecard relies on non-financial
measures in addition to financial measures for
two reasons
15
(No Transcript)
16
The Balanced Scorecard
A balanced scorecard should have measuresthat
are linked together on a cause-and-effect basis.
If we improveone performancemeasure . . .
Another desiredperformance measurewill improve.
The balanced scorecard lays out concrete actions
to attain desired outcomes.
17
The Balanced Scorecardand Compensation

• Incentive compensation should be linked to
  balanced scorecard performance measures.

18
Advantages of the BSC

• The BSC is that it puts strategy, structure, and
  vision at the center of managements focus
• The BSC emphasizes an integrated combination of
  traditional and nontraditional performance
  measures, it keeps management focused on the
  entire business process and helps ensure that
  actual current operating performance is in line
  with long-term strategy and customer values.

19
Advantages of the BSC(Cont.)

• The framework of the BSC provides a balance
  between short and long term objectives, financial
  and nonfinancial measures, and external and
  inernal performance indicators.

20
Strengths of the BSC

• Ability to translate an organizations vision and
  strategy into tangible objectives and measures.
• Focus on a limited number of critical measures
• Strong focus on customer and market.
• Flexibility and adaptability to fit each
  organization in particular.
• Easy to use.

21
Weaknesses of the BSC

• It focuses on customers, forgetting other
  important stakeholders.
• Only focus on results.
• It focuses primarily on top-down performance
  measurement.

22

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23

2- ????? ?????? ???????? ?????
Value
Target
Performance comments for objective
Objective Owner
Status
ES
Measure
Objective
F1.1
-30p
150p
Dividend expected kept at 28 p. for whole year,
but share price still around 1,000 pence leading
to low P/E compared with sector and results from
previous years
NG
Outperform capital markets
F1.2
8
18
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NG
F5.1
7.65
7.44
Cost on average 10 gt Category 1 competitors. On
level with category 2 competitors
Competitive cost of capital via capital structure
Rsh1.1
65
More shareholders vary about our future earnings
potential due to drop in TSR and general negative
press. All is down to next big announcement
indicating new thrust and direction
74
Shareholders support and back strategies
Rsh1.2
8
7
24
(No Transcript)
25
(No Transcript)
26
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27

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28

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29
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30
Cause and Effect Relationship
31

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32

• BSC Cases

33
Southwest Airlines

• Southwest Airlines strategy is to offer an
• operational excellence customer value
• proposition that has three key components
• Low ticket prices
• Convenience
• Reliability

34
Southwest Airlines

• Low ticket prices
• Company operates one type of aircraft, Boeing
  737, to reduce maintenance and training costs and
  simplify scheduling.
• Reduce costs by not offering meals, Seat
  assignments or Baggage transfers.
• Booking large portion of its passenger revenue
  over the Internet.

35
Southwest Airlines

• Customer Convenient
• Uses point-to-point flights rather than the
  hub-and-spoke approach of its larger competitors.
• Nonstop service to their final destination.

36
Southwest Airlines

• Reliability
• Southwest serves many less congested airports
  such as Chicago Midway, Manchester, and Oakland.
• It offers quicker passenger check-ins.
• Reliable departure.

37
Southwest Airlines

• BSC translates strategy into performance
  measures that employees can understand and
  influence.
• For example
• The amount of time passengers have to wait in
  line to have their baggage checked
• This performance measure is easily understood by
  the supervisor, and can be improved by the
  supervisors action.

38
Southwest Airlines
?????? ?????? ???? ?????????? ???? ???????
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???
??? ??? Southwest Airlines ??? ???????????? ???
??????? ?????? ???? ???? ? ??? ???? ????? ????
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?????? ???? ?? ???? ??? ?????? ?? ?????!
Financial
Profit Maximization
Grow Revenues
Fewer Panes
Attract retain more customers
customer
Objective Measures Target Initiatives
Fast ground turnaround On ground Time On- Time Departure 30 Minutes 90 Cycle time optimization
On Time services
Lower prices
internal
Fast ground turnaround
Learning
Ground Crew alignment
39
Southwest Airlines
?????? ?????? ???? ?????????? ???? ???????
???????? ????? ?? ???? ????? ???? ????? ??? ????
???
??? ??? Southwest Airlines ??? ???????????? ???
??????? ?????? ???? ???? ? ??? ???? ????? ????
????? ?????? ???????? ??? ????? ? ???? ?????
?????? ???? ?? ???? ??? ?????? ?? ?????!
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40
Southwest Airlines

• Overall the companys strategy has worked
• At a time when Southwest Airlines larger
  competitors are struggling, it continues to earn
  substantial profits

41
The Balanced Scorecardof Jaguar
Profit
Contribution per car
Number of cars sold
Customer satisfactionwith options
Number ofoptions available
Time toinstall option
Employee skills in installing options
42
The Balanced Scorecardof Jaguar
Profit
Contribution per car
Number of cars sold
Results
Customer satisfactionwith options
Strategies
Number ofoptions available
Time toinstall option
Employee skills in installing options
43
The Balanced Scorecardof Jaguar
Profit
Contribution per car
Results
Number of cars sold
Customer satisfactionwith options
Number ofoptions available
Time toinstall option
Employee skills in installing options
44
The Balanced Scorecardof Jaguar
Profit
Results
Contribution per car
Number of cars sold
Customer satisfactionwith options
Number ofoptions available
Time toinstall option
Employee skills in installing options
45
The Balanced Scorecardof Jaguar
Results
Profit
If numberof cars soldand contributionper car
increase,profits increase.
Contribution per car
Number of cars sold
Customer satisfactionwith options
Number ofoptions available
Time toinstall option
Employee skills in installing options