Balanced Scorecard Quick Guide

8/13/2019 Balanced Scorecard Quick Guide

1/45

Balanced Scorecard

Quick Guide

April, 2010


2/45

Basics & Best Practices

Terminologies

Balanced ScorecardQuick Guide


3/45

Booz & Company28 March 2009

In addition, Strategic & Business Planning relies on well-defined,

best practice terminology

Strategic & Business Planning Process Key Terminology

Units

Key Performance

Indicators (KPI)

Goal

Objective

Strategy

Initiative

Any Business or Functional Unit. According to the new organization structure, GACA has five Business Units (KKIA, KAIA,

KFIA, Domestic Airports and ANS) and five Functional Units (Corporate Core, IT, Finance, Human Resources, Internal

Audit) and a Safety and Economic Regulation function1

A measure used to monitor how well a business is achieving its quantifiable objectives. KPIs are found at both the

strategic (assets turnover, customer satisfaction index) or operational levels (e.g. traffic volume)

Long-term target value (a number) of KPI; set to be attained after five years

Short-term target value (a number) of KPI; set to be attained in one year

A means or action that will lead to the achievement of a goal (five years ahead)

A means or action that will lead to the achievement of the objective (one years ahead). A set of initiatives form a

strategy



4/45

Contents

BSC general work flow

Internal Scanning Summary

External Analysis Summary

SWOT Analysis Summary

Strategy Mapping Summary

KPIs Setting Summary

Targets Setting Summary

Initiatives Setting Summary BSC Dashboard Summary

Performance Assessment Summary



5/45

Now












6/45

One Of The Best PracticesFor BSC Work Flow

1. Internal Scanning

2. External Scanning

3. SWOT Analysis

4. Strategy Mapping

6. Targets Setting

5. KPIs Setting

7. Initiatives Setting

9. Performance

Monitoring

8. BSC Dashboard



7/45

Now












8/45


Introduction

Internal scanning is a strategic planning technique that helps in

determining the firms strengths and weaknesses and any

related issues inside the firm

PurposeKnowing firms strengths and weaknesses

Getting exposed to the firms processes and chain of commands

Suitable

Techniques

The following techniques are suitable to serve the internal scanning purpose:

Value Chain Analysis

Capability Assessment

ExpectedOutcomes

Once the internal scanning is done, it is expected to have:

Firms strengthsFirms weaknesses

Firms processes and value transferred from each process to another

potentials for improvements



9/45


10/45

Value Chain Analysis

Activity A

KeyResponsibilities

KeyResponsibilities

KeyResponsibilities

KeyResponsibilities

Activity B Activity C Activity D

Value transferred Value transferred Value transferred Value transferred



11/45

Capability Assessment

Organization

Readiness (%)

People

Readiness (%)

Process

Readiness (%)

System

Readiness (%)

Evidence and

Comments

Activity A

Activity B

Activity C

Activity D



12/45

Now








Initiatives Setting Summary

BSC Dashboard Summary




13/45

External Scanning Summary

Introduction

External scanning is a strategic planning technique that helps in

determining the firms opportunities and threats and any

related issues outside the firm

PurposeKnowing firms opportunities and threats

Getting exposed to the firms competitors and market changes

Suitable

Techniques

The following techniques are suitable to serve the external scanning purpose:

Industry Trends

Porter 5 Forces Model

ExpectedOutcomes

Once the external scanning is done, it is expected to have:

Firms opportunitiesFirms threats

New trends and demands

potentials for investments and competitive advantages



14/45

Now



External Analysis Summary Related Templates










15/45

Corporate Industry Trends

Trend Description Supporting Evidence Implications

Trend A

Trend B

Trend A

Trend B

Trend A

Trend B

Trend A

Trend B

Trend A

Trend B

Competitive

Trends

Market

Trends

Regula

tory

Tren

ds

Technology

Trends

O

ther

Trends



16/45

Focal

Firm

Buyers

Suppliers

Entry

Rivalry

Substitutes

Complementors

Demographic

Trends

Technological

Change

Cultural

Trends

Economic

Climate

Legal/Political

Conditions

Specific

International

Events

Industry

General External Environment



17/45

Now













18/45

SWOT Summary

IntroductionSWOT is a strategic planning technique that helps in

determining the firms strategic directions and priories

PurposeKnowing what strategies will sustain the growth of the firm and what

will be done in order to extract advantaged over the competitors

Suitable

Techniques

The following techniques are suitable to serve the SWOT

purpose:

SWOT Matching

ExpectedOutcomes

Once the SWOT is done, it is expected to have:Firms strategic directions and priorities



19/45

Now




SWOT Analysis Summary Related Templates









20/45

SWOT Summary

ExternalF

actors

Opportunities

Threats

Internal Factors

Strengths Weaknesses1. Internal Strengths Matched with

External Opportunities

2. Internal Weaknesses Relative to

External Opportunities

3. Internal Strengths Matched with

External Threats

4. Internal Weaknesses Relative to

External Threats



21/45

Leverage the planned expansion for Jeddah airport to attract the growing

charter market in the region

SO1

SO2

SO1

WO1

WO2

WO3

WT2

SWOT Analysis

Explore New

Market Segments

to Expand

Revenue Base

Strategic Priorities

1

2

3

SO ST

WO WT

WO4

WO5

WO6



22/45

Now













23/45


Introduction

Strategy mapping is a strategic planning technique that helps in

representing the firms strategies in such a way that shows the

cause and effect of each strategy

PurposeTo ensure that each strategy does really serve a specific other strategy,

and the overall strategies serve and feed the firm's vision

Suitable

Techniques

The following techniques are suitable to serve the strategy

mapping purpose:

Strategy Map

ExpectedOutcomes

Once the strategy mapping is done, it is expected to have:Firms strategy map



24/45

Now





Strategy Mapping Summary Related Templates








25/45

LEARNING AND GROWTHPERSPECTIVE

INTERNALPERSPECTIVE

CUSTOMERPERSPECTIVE

FINANCIALPERSPECTIVE

VISION



26/45

Now













27/45


Introduction

KPIs (Key Performance Indicators) are measures that indicate

how is the progress of strategic objectives and targets

achievements

PurposeTo indicate and alarm the management for strategy and targets

achievements or deviations

Suitable

Techniques

KPIs Profile

Benchmarking

KPIs Libraries

Expected

Outcomes

Once the KPIs setting is done, it is expected to have:

Firms KPIs

KPIs definitions & frequency of review

KPIs formulas

Strategic objectives that are measures by specific KPIs

KPIs owners



28/45

Now






KPIs Setting Summary Related Templates







29/45

Definition

Definition

Definition

Definition

KPI Definition

X+Y = Z

X+Y = Z

X+Y = Z

X+Y = Z

KPI Formula

W/M/Q/S/A

W/M/Q/S/A

W/M/Q/S/A

W/M/Q/S/A

Frequency

Name / Dept.

Name / Dept.

Name / Dept.

Name / Dept.

Owner



30/45

Now













31/45


IntroductionTargets are those values (determined in each KPI) that the

management wants to achieve within a certain time

PurposeTo make the KPIs and the measurement more quantifiable and

measureable

Suitable

Techniques

Benchmarking

Forecasting

Feasibility studies

Market Research

ExpectedOutcomes

Once the targets setting is done, it is expected to have:

KPIs targets

Targets values & units



32/45

Now













33/45


IntroductionAre those actions that are predesigned and dedicated to

achieve the determined targets and to activate specific KPIs

PurposeTo help the firm achieving strategic objectives

Suitable

Techniques

Benchmarking

Feasibility studies

Market Research

R&D

ExpectedOutcomes

Once the initiatives setting is done, it is expected to have:

Strategic plan initiatives

Owners



34/45

Now








Initiatives Setting Summary Related Templates





35/45

Strategic Priority A

Strategic Priority B

Strategic Priority C

Strategic Priority D

Strategic Priority

1. KPI1

2. KPI2

3. KPI3

1. KPI1

2. KPI2

3. KPI3

1. KPI1

2. KPI2

3. KPI3

1. KPI1

2. KPI23. KPI3

KPI

VALUE (unit)

VALUE (unit)

VALUE (unit)

VALUE (unit)

Target

1. Action A

2. Action B

3. Action C

1. Action A

2. Action B

3. Action C

1. Action A

2. Action B

3. Action C

1. Action A2. Action B

3. Action C

Initiative



36/45

Now













37/45


38/45

Now

BSC general work flow Internal Scanning Summary







BSC Dashboard Summary Related Templates




39/45

Internal Processes Dimension

Indicators

% (Actual

/ Target)

Learning & Growth Dimension

Indicators

% (Actual

/ Target)

Financial Dimension

Indicators

Actual < 90% of Target

90% of Target < Actual < 100% of Target

Actual >= 100% of Target

% (Actual

/ Target)

Internal Processes Dimension

Indicators

% (Actual

/ Target)



40/45

Now












41/45


IntroductionIt is a systematic examination of the whole strategic plan and

its achievements and implications

Purpose Contiguous learning and improvement

Suitable

Techniques

Cause& Effect

systematic inspections and assessment

Corrective planning

Preventive planning

Lessons Learned

ExpectedOutcomes

Once the performance assessment is done, it is expected to have:Performance assessment reports



42/45

Now









Performance Assessment Summary Related Templates



43/45

External Factors Description

A

X

Internal Factors

Operational Lever Root Cause Corrective Action Plan

1

2

X

% Plan Completed

30%

04/0909/08

33%

01/0911/08

80%

w%

dd/yydd/yy

Balanced Scorecard

Quick Guide


44/45

KPI(Target Unit)

6 5 48

30

0

10

20

30

40

M-3 M-2 M-1 Current Month Cumulative To Date

0

10

20

30

40

Actual Target

Comments

Summary of drivers for performance

Summary of actions taken to rectify any

variance

Overall Status

Based on both current performance and on cumulative-to-date performance

Gap =< -10% of Target -10% of Target < Gap < 0% of Target Gap >= 0% of Target

Balanced Scorecard

Quick Guide


45/45

End of

Balanced Scorecard

Quick Guide

Documents

Balanced Scorecard Quick Guide