Balance Scorecard

Performance Management System 12What is the balanced scorecard?The long-term success of any organization is determined by the capabilities and the competencies it has developed.It considers the financial indices as well the non-financial ones in determining the corporate performance levelIt is not just a performance measurement tool but is also a performance management system.3Objectives Indicate companys strategy and its link with perspectives

Strategy is communicated to all

Strategy translated into measurable targets

Motivates Managers to achieve targets

BSC limits the measures to only four

Highlights effect of one perspective on another

Perspective & Strategy If we succeed, how willWe look to ourShareholders?The StrategyFinancial PerspectiveTo satisfy our customers,Which processes mustWe excel ?Internal PerspectiveTo achieve our vision,How must we look to ourCustomers ?Customers PerspectiveTo achieve our vision, how must our organisation teamImproves?Organizational LearningMeasurement is the language that gives clarityTo vague conceptsMeasurement is used to communicate,Not to controlStrategy can be described as a series of Cause and Effect relationshipDevelop Strategic GoalsMissionVisionClarify mission & Vision statementStrategic GoalsDerive Sub-GoalsSub-GoalsMap Sub-Goals to each quadrant of the Balanced Score Card - identify measurement areas - develop measurement goals - postulate indicators - identify data elementsFor each BSC QuadrantData ElementsModuleTrouble ReportsIndicatorsBalanced Scorecard

MethodologyOverviewA Balanced Scorecard Perspective on Performance

PMS Planning Define organisation Vision, Mission, Strategic Objective Define departmental GoalDefine individual goalTNA and Competency mappingDesign a training plan and adhere the training calendar Internal process documentation for individual process 8