Balanced scorecard, example and case study free download as powerpoint presentation. Balanced scorecard software is an excellent option, but perhaps you want to build a simple scorecard before you commit to a longterm solutionso weve provided one for you. Constituent i stakeholder financial stewardship internal process organizational capacity core values. When you download this white paper, youll have access to the following information. There are a number of tool and models that seek to achieve the same result, but the balanced scorecard is one of the most popular and most successful in use. This article explains the balanced scorecard, developed by robert kaplan and david norton, in a practical way. Vervolgens moet voor elke succesfactor een balanced scorecard template ingevuld worden. The balanced scorecard is a mature methodology, and there are many resources for introductory education, training, and consulting. It is a hangover from the early kaplan and norton days when the balanced scorecard was first introduced. This scorecard helps to explain to all stakeholders what is your strategy, how this strategy can be executed, and how the performance results can be measured. Before presenting balanced scorecard examples, it is important to understand the context and the concepts behind the management and monitoring tool created by professors robert s. David norton and i introduced the balanced scorecard in a 1992 harvard. Examples, samples, and templates try smartsheet for free if your organization is looking for more structure whether it is a startup or an established company it can only strengthen its position by refining strategy.
The final version of the scorecard, adopted to the needs of your organization, will be very different from the starting template. Introduction need for measurementstrategic planning, university of minnesota strategic planning effort ii. Balanced scorecard for legal departments legal project. The balanced scorecard is a strategy performance management tool. However, comingup with a good strategy is not always simple. It is interesting to note that scorecard is actually a bit of a misnomer. In this post, we will explain what is a kpi scorecard, when to use it, what is the difference between scorecard and dashboard, and kpi scorecard examples and templates from business scenarios that can be applied to different departments and organizations or used as a roadmap for online data analysis. Browse balanced scorecard templates and examples you can make with smartdraw. Hbr 1992 the balanced scorecard measures that drive performance by robert s. Balanced scorecard measurements the purpose of measurements is to guide, forewarn, and inform in flight course corrections advance warning of potential problems e. Walmart has developed a scorecard so that their customers can see what goals that the company wants to achieve and also how to achieve those goals.
Niven is a management consultant and noted speaker on the sub jects of performance management and the balanced scorecard. Example of nonprofit balanced scorecard with 14 kpis. There are typically four common elements of a balanced scorecard for internal audit as illustrated in exhibit 2, together with examples of common kpis, notably. A balanced scorecard bsc can be used to measure performance by analyzing the 4 key perspective areas. What follows, provides guidance and advice on the development and implementation of a balanced scorecard for those organisations considering the introduction of a. The balanced scorecard designer software was used to create this kpi. The bsc expands the traditional financial measures into three other dimensions to capture a balanced approach to measure performance in an organization. Senior managers at eci, for example, established general goals for customer performance.
Department of energy federal personal property management program example of a balanced scorecard for a major government program. Balanced scorecards as a performance management tool. Use this project as a template and customize it according to the needs of your hospitality business. Basic concepts of the balanced scorecard and how it can be used to improve organization performance how the balanced scorecard applies to different types of organizations how to build and implement a scorecard using the. One template that is good for all users does not exist as the balanced scorecard is adjustable for every business and every needits even used as a people management tool. Discuss the difference between leading and lagging indicators as measures of hr effectiveness.
Een balanced scorecard kpi gebruiken om bedrijfsprestaties te monitoren en kpis te managen. In these studies balanced scorecard was applied as a multidimensional performance measurement system. Figure 3 is an example of the balanced scorecard model. Although the committee recognizes that there are multiple approaches dhs can take to these ends, this appendix provides as an example the performance measure framework and balanced scorecard currently used by the u. Senior managers at eci, for demands that managers translate their general mis example, established general goals for customer persion statement on customer service into specific formance. Kaplan and norton describe the innovation of the balanced scorecard as follows. Academic organizations also recognized the need for implementing such systems, for example, some recent works in organizational performance in higher education make use of kaplan and nortons balanced scorecard bsc to translate the characteristic strategic goals e. Smart companies plan their development for both the near and far future. Success stories are beginning to accumulate and studies suggest the balanced scorecard is of great benefit to both these organization types.
Performance measure framework and balanced scorecard example. Norton the balanced scorecard tracks all the important elements of a companys strategyfrom continuous improvement and partnerships to teamwork and global scale. Describe the value and role of the hr scorecard dashboard. Escuela politecnica del ejercito estrategia competitiva. Balanced scorecard is an example of a closedloop controller or cybernetic control applied to the management of the implementation of a strategy. The balanced scorecard has emerged in recent years as what can perhaps best be described as a strategic control tool.
The article defines a balanced scorecard as follows. Pdf the application of the balanced scorecard bsc in. Once the organisation has committed to the methodology, a third party facilitator e. The manual updating of status is impractical, given the.
Appendix c performance measure framework and balanced scorecard example. Managing financial securities is a cumbersome task owing to the dynamic nature of factors, which have a bearing on their performance. In the developed countries, many prior studies investigated the balanced scorecard, but few studies dealt with this phenomena in the developing countries. The information included is fictional and is provided to simply demonstrate the process. Jun 09, 2016 the following balanced scorecard example will demonstrate how this works. Balanced scorecard basics communicat business systems. An example balanced scorecard might resemble the following image. Balanced scorecard example the following is an example of how one might develop a balanced scorecard. The balanced scorecard is the closest management tool to a crystal ball as you will find. Making a balanced scorecard for your business is a vital thing to do. Balanced scorecard basics balanced scorecard institute. The balanced scorecard bsc of construction company represent basis for development in cascading procces particularly balanced scorecard at the projects level known as project scorecard psc. The balanced scorecard has been translated and effectively implemented in both the nonprofit and public sectors.
But financial measures tell the story of past events, an. This week, trust and foundation news, june 09, the journal of the association of charitable foundations, published a case study of the balanced. Identify the key performance drivers and enablers that constitute the primary hr deliverables. Pdf, 2gc active management, archived from the original on 20 june 2014. The balanced scorecard was developed 12 years ago and has grown in popularity and is used by more than 50% of the fortune 500 companies as a performance measurement and strategic management tool.
By the end of this article, youll be a balanced scorecard expert. A full balanced scorecard example including 6 templates. A common misconception is that there is an hr balanced scorecard. The hr balanced scorecard is a mixup of the hr scorecard and the balanced scorecard. Following the same logic, the various examples of the balanced scorecard wont help a lot. Balanced scorecard development with lean management. Balanced scorecard definition of balanced scorecard by robert s. Balanced scorecard is a strategy performance management tool a semistandard structured. Definition and concept an approach to the provision of information to the management to assist with.
In their original book, the balanced scorecard, translating strategy into action, drs. Process, finance, environmental, personnel and client satisfaction. In 1996 the two published a book that bore that title. Targets are set out for each of the four perspectives in terms of longterm objectives. The balanced scorecard can be understood as a management sys. Balanced scorecard stepbystep volta river authority. The balanced scorecard in healthcare clearpoint strategy. Balanced scorecard excel template clearpoint strategy.
Creating an excelbased balanced scorecard to measure the performance of colleges of agriculture paper presented at american agricultural economics association annual meeting long beach, ca july 23 26, 2006 i. This thesis develops a balanced scorecard model based on the attributes of kaplan and nortons balanced scorecard 1992, 1996, 2001. Jan 04, 2012 this example was created by using performancepoint services. Balanced scorecard university of california, san diego. The key performance indicator evaluation process kpi. Balanced scorecard, might conjure up an initial impression of a table of measurements or key performance indicators, it is in fact a process comprising of a number of carefully interlinked steps. The balanced scorecard measures that drive performance january february 1992 putting the balanced scorecard to work september october 1993 using the balanced scorecard as a strategic management system january february 1996 alignment and communicatio n acceptance and acclaim. Anytown hospital has just finished a twoday retreat where they revised and updated their mission and vision statements and drafted a strategic plan. Since then, many lessons have been learned on metrics for it, balanced scorecards and how management deal with the. Planning, setting targets and aligning strategy are two of the key areas where the balanced scorecard can contribute. Using the balanced scorecard as a strategic management. Balanced scorecard is a strategy performance management tool a semi standard structured. Creating an excelbased balanced scorecard to measure the.
My experiences as a balanced scorecard practitioner with a large canadian company taught me that tremendous results are possible with the tool, but to attain. It is an attempt to capture the essence of the organizations critical valuecreating activities. The salesbalanced scorecard is based on the same four perspectives as the balanced scorecard developed by. Balanced scorecard examples and templates smartsheet. The balanced scorecard is a workshop technique for establishing the most useful high level measures by which to monitor your companys units progress and performance against its strategic goals. Example of balanced scorecard for top management to examine health of business.
Introduction the purpose of this publication is to describe the process of implementing a balanced scorecard bsc initiative in a small rural hospital setting, including how to identify if an organization is ready for the implementation phase, what the various steps are in the process. The balanced scorecard retains traditional financial measures. The purpose of this report is to give you a window on the hospital to see how we are doing in meeting our nine strategic goals that were established in our 201518 strategic plan. Balanced scorecard, example and case study strategic. For example, we have a number of good examples here. It is, however, hugely important that your balanced scorecard is managed effectively. Balanced scorecard example objectives measures ddrivers targets initiatives fy01 fy02 fy03 customer financial maximize returns roce 14% 14. You want to implement a successful strategic framework throughout your organization, and youve heard that the balanced scorecard is one of the most popular choices. How to create a balanced scorecard to create a balanced scorecard by using performancepoint services, you typically use the following process. An example of a strategy scorecard that can be used by top managers of a hotel. The information, methodologies and processes contained in these materials are provided according to builtin software and formulas.
How well the internal audit function partners with the. The balanced scorecard focuses on factors that create longterm value traditional financial reports look backward reflect only the past. The name balanced scorecard comes from the idea of looking at strategic measures in addition to. Feb 10, 20 the remainder of this document will focus on the basic assumptions and principles entailed in modifying the process, the actual components of a modified balanced scorecard process, and suggested performance indicators that could be incorporated into a rural hospital balanced scorecard. Adopting of balanced scorecard by manufacturing firms in. The balanced scorecard provides a solution for this by breaking down objectives and making it easier for management and employees to understand. Balanced scorecard is a strategy performance management tool a semistandard structured report, that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions. To advance institutional performance by building individual, team, and organizational capability. The balanced scorecard measures that drive performance. Learn how to set objectives, strategic goals and performance indicators in these three balanced scorecard examples.
Pdf when is a balanced scorecard a balanced scorecard. The key performance indicator evaluation process kpi process aims continuous improvement. A balanced scorecard is very helpful to any organization and should be viewed as a very important document throughout the company. The balanced scorecard is a report that looks at a variety of different areas. Due to popular demand, the article has been updated to include six sample balanced scorecard strategy maps. As both a practitioner and consultant he has developed successful performance management systems for organizations large and small around the globe. Each of our nine strategic goals has a number of objectives and indicators, and in this report you will be able.
This example was created by using performancepoint services. The balanced business scorecard, or the balanced scorecard, is a management tool used by many organizations in order to align their activities with their goals. Measure and monitor progress towards strategic targets. The articles in this section describe how to create a similar balanced scorecard that you can use in your organization.
The balanced scorecard was first published about by kaplan and norton in the early 90s. When designed properly it can provide an excellent management tool to help keep businesses and organisations on track. An it metrics team was established in the 2002 transformation and a pilot balanced scorecard for it as a business unit was developed for the 20023 financial year fy. With that in mind, lets dive right in to an example of what a balanced scorecard looks like in practice. Balanced scorecards for a charity over the last few years we have done quite a lot of work in the area of charities, foundations, not for profit and social enterprise balanced scorecards. It provides a roadmap on where to focus energies, priorities, and resources. The balanced scorecard model is shown in figure 7, below. The balanced scorecard is an organizational performance management methodology used to to translate an organizations mission and vision into actual operational actions strategic planning.
A balanced scorecard is most effective if district administrators can assess key metrics instantly. Options banner for balanced scorecard report powerpoint template, balanced scorecard strategic priorities ppt powerpoint presentation inspiration example, strategy map balanced scorecard ppt sample. In particular it explains how public sector bodies can model their strategy and their service delivery models in their strategy map, so that the resulting balanced scorecard better communicates their overall approach. A balanced scorecard is a performance metric used to identify and improve various internal functions and their resulting external outcomes. The real power of a properly developed balanced scorecard is that it links the performance measures to the organisations strategy. This article also contains a downloadable and editable balanced scorecard template. A few examples will illustrate how the scorecard uniquely combines management and measurement in different companies. The balanced scorecard model is conceptualised on four business perspectives the balanced scorecard model allows managers to look at an organisation by focusing on four perspectives that are linked to the corporate vision and strategy for better performance. Business balanced scorecard can also be applied in an ict environment to provide the different stakeholders. Its highprofile in management seminars and academic debates has placed the balanced scorecard alongside approaches such as activity based costingmanagement and. Upward airlines reading a balanced scorecard strategy map.
The balanced scorecardmeasures that drive performance. Throughout this report, the committee recognizes the need for the department of homeland security dhs to take a strategic approach to planning for and management of workforce health protection. A brief introduction to the balanced scorecard why do companies need business scorecards. The final element necessary for an effective balanced scorecard is real. Pdf purpose the balanced scorecard bsc is widely applied as a performance measurement and strategy implementation tool by organizations. And even when you have a solid strategy, trying to measure your success can be even more complicated. The following white paper includes sample scorecards with examples to illustrate how medical and healthcare groups have put the balanced scorecard to work for them. Balanced scorecard reporting illustrated in this exhibit these kpis are the basis of further expansion in exhibits 3, 4 and 5. Pdf an integrated approach for prioritizing the strategic. After reading you will understand the basics of this powerful strategy and performance management tool.