D:\My Documents\7 Knowledge\Bsc\8680786 Scorecard Ppt

D:\My Documents\7 Knowledge\Bsc\8680786 Scorecard Ppt

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  HR SCORECARD
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  BALANCED SCORECARD :A STRATEGIC MANAGEMENT TO * ABSTRACT The success of any organization is reflected upon by its performance which is in turn highlydependent upon its strategies. In this era of cut-throat competition, what an organisation requiresis not just framing the right strategies, but also managing the same.
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  The impact ofthe right strategies will automatically be reflected in the results. Moreover, any organization has to understand that it needs to give impetus not only towards the financial results but also towards satisfaction of the customers, development of state-of-the-art technologies and creation of an environment of learning and growth.
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  The Balanced Scorecardis such an innovative tool which has considered not just the financial indices but also the non-financial indicators as equally critical in determining organizational performance. This tool brings a link between strategy and action. Due to these, the framework is gaining increasing importance among different business houses.
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  Balanced Scorecard -Concept (i) It considers the financial indices as well the non-financial ones indetermining the corporate performance level and (ii) It is not just a performance measurement tool but is also a performancemanagement system.
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  IT TRY TOANSWER 1. Financial Perspective - How do we look at shareholders? 2. Customer Perspective - How should we appear to our customers? 3. Internal Business Processes Perspective - What must we excel at? 4. Learning and Growth Perspective - Can we continue to improve and createvalue?
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  framework tries tobring a balance and linkage between (a) Financial and the Non-Financial indicators, (b) Tangible and the Intangible measures, (c) Internal and the External aspects and (d) Leading and the Lagging indicators.
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  The Four Perspectives: Cause and Effect Relationship The Cause and Effect relationships among the four perspectives Learning and Growth Better Processes Increased Customer Value Improved Financial Performance
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  A. Financial PerspectiveRETURN ON EQUITY INCREASE IN MARKET SHARE PROSPER CASH FLOW SURVIVE MEASURES OBJECTIVES
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  B. Customer Perspective℅ OF RETAINED CUSTOMERS CUSTOMER RELATIONSHIPS ℅ OF SALES FROM NEWER PRODUCTS NEW PRODUCTS MEASURES OBJECTIVES
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  C. Internal BusinessProcesses Perspective NO. OF ACCIDENTS SAFETY INCIDENCE INDEX CYCLE TIME PER UNIT MANUFACTURING EXCELLENCE MEASURES OBJECTIVES
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  D. Learning andGrowth Perspective TIME TO DEVELOP NEWER PRODUCT TECHNOLOGY LEADERSHIP MEASURES OBJECTIVES
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  Utilising The BalancedScorecard As A Strategic Management Tool 1. Translating the Vision 2. Communicating and Linking 3. Business Planning 4. Feedback and Learning
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  Advantages of UsingThe Balanced Scorecard • It translates vision and strategy into action. • It defines the strategic linkages to integrate performance across organizations. • It communicates the objectives and measures to a business unit. • It aligns the strategic initiatives in order to attain the long-term goals.
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  • Italigns everyone within an organization so that all employees understandhow they support the strategy. • It provides a basis for compensation for performance. • The scorecard provides a feedback to the senior management if the strategy isworking
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  CONCLUSION The BalancedScorecard is therefore a very important strategicmanagement tool which helps an organization to not only measure theperformance but also decide/manage the strategies which are needed to beadopted/modified so that the long-term goals are achieved. Thus, in other words,the application of this tool ensures the consistency of vision and action which isthe first step towards the development of a successful organization. Also, itsproper implementation can ensure the development of competencies within anorganization which will help it to develop a competitive advantage without whichit cannot expect to outperform its rivals.