Strategic Planning with BSC

SECTION AGENDA
Introduction to BSC

Strategic planning and Management

Change Analysis

Strategy Mapping

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 Moving towards a
Strategic plan

Balance Strategic Change analysis KPI selection

scorecard planning & & strategic
management mapping

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Strategic planning with BSC

Introduction to
Balance Score
Card

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 NORTAN & KAPLAN’s

Balance Score Card

BENEFITS

1. Better and effective communication

2. Increase focus on strategies and results
3. Aligning activities of all the employees
4. Measuring and monitoring the progress
• With Key Indicators
5. Prioritize products and services.

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 High Level Framework
Mission/ Vision/ Value/Strategies/Results

Strategic Objectives Metrics and Targets Initiatives

Financial

Customer Perspectives outline the major goals

of the Organization
Internal

Learning & Growth

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 The 4 Perspectives
Financial

Vision &
Learning & Growth Customer
Strategies

Internal Business
Processes

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Adapted from BSC by Kaplan & Norton
 The 4 Perspectives
Financial
• Financial performance
• Financial resource usage

Vision &
Learning & Growth Customer
Strategies

• Cash flow
• Returns on Investment
• Returns on capital Internal Business
Processes

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Adapted from BSC by Kaplan & Norton
 The 4 Perspectives
Financial
• Value to the customer?

Vision &
Learning & Growth Customer
Strategies

• Cost
• Service
• Quality Internal Business
• Time Processes

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Adapted from BSC by Kaplan & Norton
 The 4 Perspectives
Financial
• Level of efficiency
• Productivity

Vision &
Learning & Growth Customer
Strategies

• #Bottlenecks
• Process alignment
• Process automation Internal Business
Processes

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Adapted from BSC by Kaplan & Norton
 The 4 Perspectives
Financial
• Ability to change and
improve

Vision &
Learning & Growth Customer
Strategies

• Work culture
• HR
• Infrastructure Internal Business
Processes

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Adapted from BSC by Kaplan & Norton
 • Implementation time and cost
• Copying generic metrics
• Relies heavily on strategies and
mapping
• Leading KPIs also required

Balance Score Card

DISADVANTAGES

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 Next Lesson

Strategic Planning and

Management with
BSC
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Strategic planning with BSC

Strategic Planning
and Management
with BSC

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 Refer: BSC’s Nine Steps to SuccessTM

Strategic Planning and Management

Assessment

Evaluation Strategy

• Disciplined approach to developing a Alignment Objectives

strategic planning and management
system
• Effective strategic management tool

Performance
Strategy map
Analysis

Performance
Initiatives
measures

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 Refer: BSC’s Nine Steps to SuccessTM

Strategic Planning and Management

Assessment

Evaluation Strategy

Current state
Vision
Mission
Alignment Objectives
Goals
Gap analysis

Strategic objectives set against desired state

Strategy Mapping
Performance
Strategy map
Analysis

Performance
Initiatives
measures

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 Refer: BSC’s Nine Steps to SuccessTM

Strategic Planning and Management

Assessment

Evaluation Strategy

Performance measurement framework Alignment Objectives

Initiatives listed

Performance
Strategy map
Analysis

Performance
Initiatives
measures

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 Refer: BSC’s Nine Steps to SuccessTM

Strategic Planning and Management

Assessment

Evaluation Strategy

Collect data Alignment Objectives

Analyse
Infer

Performance
Strategy map
Analysis

Performance
Initiatives
measures

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 Refer: BSC’s Nine Steps to SuccessTM

Strategic Planning and Management

Assessment

Evaluation Strategy

61% of the respondents in the

industry, often fail to bridge
Alignment Objectives
the gap between strategy
formulation and its day to day
implementation.

Performance
Strategy map
Analysis

Performance
Initiatives
measures

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 Refer: BSC’s Nine Steps to SuccessTM

Strategic Planning and Management

Assessment

Evaluation Strategy

Are our strategies working? Alignment Objectives

Performance
Strategy map
Analysis

Performance
Initiatives
measures

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 Let’s recap…

• 4 perspectives of BSC
• What do each signify
• Strategic Planning and Management with
BSC

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 Next Lesson

Change Analysis

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Strategic Planning- Step 1

Change Analysis

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 Change Analysis
• To find out what do you need to do to achieve your goal

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Change Analysis- Big Store

Gaps/ Changes required/ Current State Perspectives

No online sales Fin
Online site visits are very less in comparison to Fin
brick and mortar customer footfall
Only electronic items and books sold Customer

High downtime of online portal Internal

IT services dependency on vendors L&G

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Change Analysis- Big Store

Gaps/ Changes required/ Current State Perspectives Desired State

No online sales Fin Increase online sales

Online site visits are very less in comparison to Fin Increase online customer base
brick and mortar customer footfall Become a supplier for variety of products-
Only electronic items and books sold Customer
Diversification
High downtime of online portal Internal Reduce the downtime to minimum

IT services dependency on vendors L&G Create own IT unit with developers

 Big Store Strategy Planner- DIY
Write some points in the current state (as described in the
case below) and respective desired state:
Big Store is new retail outlet in the New City of New States. As
an owner of the store you dream to see Big Store successful
in the world.
Goal: Double the revenue every year for next 5 years

At present, Big Store is not seeing consistent cash flow, and

from the sale data so far they have only books to be sold. The
morale of employees is going down as they are not finding
any motivation to work here, the small sales force is not even
properly trained. Big Store also wants to enter to ecommerce
but has not done yet so because of absence of any IT team be
it internal or outsourced.
Take a cue from this and write down the current state in each
www.learninhub.com of the perspectives and then the desired state.
 Next Lesson

Strategy Mapping

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Strategic Planning- Step 2

Strategy Mapping

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 Strategy Mapping
• To document what is to be done to reach the desired state and to link all the objectives together so that they align with
the single goal.

A. Writing the strategic objectives: Verb+ Adjective+ Noun (action+ description+ result)
B. Mapping the strategic objectives with each other
C. Convert each objective into a statement as well, so that you can understand it at a later point in time.
A general thumb rule is three to four objectives for each perspective

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Strategy Mapping- Big Store

Perspectives Desired State Objectives

Financial Increase online sales Increase+ monthly+ sales by 20%
Increase online customer base Increase+ monthly+ subscription
rate by 20%
Customer To become a supplier for variety of Increase launching of new products
products every quarter by 15%

Process & Products Reduce the downtime Decrease the portal downtime by
80%

Learning & Growth Creating own IT unit with Increase IT developers count to 50
developers by EOQ

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Strategy Mapping- Big Store

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 Big Store Strategy Planner- DIY
You have got the points in desired state in the previous
assignment, now write down at least 1 objective for each
and do the mapping of those strategic objectives:

Big Store is new retail outlet in the New City of New States. As
an owner of the store you dream to see Big Store successful
in the world.
Goal: Double the revenue every year for next 5 years

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 Let’s recap…

• 4 perspectives of BSC
• What do each signify
• Strategic Planning and Management with
BSC

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 Next Lesson

KPIs Selection

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