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Balanced Scorecard:
M A Parry Mobile: +91 9906415415School of Business Studies,Islamic University of Science and Technology,Awantipora
Introductions
My backgroundM A Parry Assistant Professor,SBS, IUST,Awantipora Your background
– Name, institution, position– Why you selected /attend this session and what you
expect from it.
Session Description
The session aims to introduce BSC in its originality & later as a customized tool in an Educational setup
Vision and MissionVision
Future: WHERE, purpose and value of Business;
What makes us different? What, for whom and
why? Who are the
organizations primary clients( stakeholders) & and our responsibilities
Mission
Now Where do we aim to be? Where, when and how? Memorable and
engaging, alignment with organisational values and culture
Administration vs ManagementAdministration
Formulation of strategic plans and policies: thinking function
Top level Owners Motivating and
controlling
Management
Implementation of the
plans: doing function
Middle and lower level
Partners
Planning and organizing
Balanced Scorecard Basics: Core
A strategic Planning and Management system: Core processes ( Drs K & N):
1. Clarifying and translating vision into strategy;
2. Communicating strategic objectives and measures and linking them to operations;
3. Planning and setting targets to align strategic initiatives ; and
4. Enhancing strategic feedback and learning .
HISTORY BSC
The first BSC was created by Art Schneiderman at Analog Devices-1987
Kaplan and David P. Norton published papers at HBR 1992 and 1993
Book The Balanced Scorecard 1996 The Strategy Focused Organization : strategic
linkage model ( Strategic map): 3rd Generation BSC
Balanced Scorecard Defined:
The Balanced Scorecard (BSC) is a strategy performance management tool - a semi-standard structured report, supported by design methods and automation tools, 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.
Strategic Planning and Management
Strategic planning is an organization's process
of defining its strategy, or direction, and
making decisions on allocating its resources
to pursue this strategy. It may also extend to
control mechanisms for guiding the
implementation of the strategy.
STRATEGY
Strategy includes processes of formulation and implementation of broader objectives;
Involves synthesis via strategic thinking; Elements of a competitive strategy: a) strengths
and weaknesses;b) Personal values of the key implementers;c) Industry opportunities and threats, and d) Broader societal expectations
Balanced Score Card as they knew
1. "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.“ Drs K&N
What’s BSC?
A strategic planning and management system used to:
align business activities to the vision and strategy;
Improve internal and external communications; And monitor organizational performance
against strategic goals.
-Monitors the performance of all or part of an organisation,
towards strategic or operational goals;
-Uses financial and non-financial performance measures
(lagging and leading indictors);
-You can't tell when you're winning if you don't keep score,
the balanced scorecard helps track your hits and misses.” -
Eric Berkman
WHAT BSC does
OBJECTIVE of BSC
Translate organisational vision and strategy
into a specific objectives and measures in
four main perspectives: finances, customers,
internal business processes and learning/
growth.
1. FINANCIAL e.g., cash flow, sales growth, operating income, return on equity,
2.CUSTOMER e.g.,percent of sales from new products, on time delivery, share of important customers’ purchases, ranking by important customers,etc
3.OPERATIONS ( Internal Processes) e.g.,cycle time, unit cost, yield, new product int reductions,etc
4.INNOVATIONS ( Learning and Growth) e.g.,time to develop new generation of products, life cycle to product maturity, time to market versus competition,etc
Perspectives of BSC
Assessment & BSC in Academics
Assessment is an on-going process aimed at understanding and
improving student learning. It involves:
1. Making our expectations explicit and public;
2. Setting appropriate criteria and high standards for learning quality;
3. Systematically gathering, analyzing, and interpreting evidence to
determine how well performance matches those expectations and
standards;
4. And using the resulting information to document, explain, and
improve performance.
Performance Excellence Framework
Core Values and Concepts for Excellence in Education:
Visionary Leadership: Learning –centred education; Organisational and personal learning; Valuing faculty, staff, and partners; Agility and Focus on the Future ( formative &
Summative assessments); Managing for innovation; Social Responsibility; Result & value orientation and system
perspective
1. Translating the vision into operational goals;
2. Communicating the vision and link it to individual
performance;
3.Business planning; index setting
4. Feedback and learning, and adjusting the
strategy accordingly.
Steps in Developing a Balanced Scorecard
Questions/Concerns
Discovering and Rediscovering a BSC year after year:
1. How do we know if we assessing what really matters? 2. How do we get at the big picture through the details?
(Seeing the forest vs. the trees)3. How do we develop language that better fits the Student
Affairs/Higher Education culture? As well as the Higher Learning Commission and Accreditation Expectations?
4. How do we incorporate our mission?5. How do we link our strategic planning into the process?
Priorities for Education
Diversity ( Disability access, ethnicity,etc)
Student Learning Experiences;
Academic Excellence,
Outreach and Engagement, and
Resource Management
External and Internal Driven Assessment
Externally driven
Audience: Students, Govt bodies, Revenue generators;
Concerns: Internal issues
Focus: relevant audiences
Format: Report cards, rankings, etc.
Internally Driven
Faculty, academic and non-academic administrators;
Resource allocation, organisational agenda
Political coalitions, Institutional reports
Criticism of BSC
Empirical , failed to include any citations Technical flaws in the methods and design of the
original Balanced Scorecard; Does not provide a bottom line score or a unified
view with clear recommendations; Implementation is difficult and sometimes
frustrating
How BSC scores for self: Who Designed?
Perspective names
Uses and Influences of BSC
Linkages
Role of BSC
“Living a balanced life must result in a balanced scorecard after the game of life.” M A Parry
“Education is not about the preparation for life: it is life itself.” J.Dewey
