Professional Documents
Culture Documents
Balanced Scorecard 2010
Balanced Scorecard 2010
Balanced Scorecard 2010
A general overview
Gartner
The
Why?
Norton
a set of
history
http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx
establishing
Step
Step
Step
Step
Step
Step
Step
Step
Step
One: Assessment
Two: Strategy
Three: Objectives
Four: Strategy Map
Five: Performance Measures
Six: Initiatives
Seven: Automation
Eight: Cascade
Nine: Evaluation
The
Exh.
10-11
Performance Measures
Financial
Customer
What customers do
we want to serve and
how are we going to
win and retain them?
Vision
and
Strategy
http://www.managerialaccounting.org/Balanced%20Scorecard.htm
Translates
Who are
What do
your stakeholders?
your stakeholders need?
What are their strategic goals?
Create a Strategy Map-identify your
priorities
Consider the four perspectivesBusiness Processes, Customer
Relationship, Education and Growth, and
Finance
strategy
map view
scorecard
view
Elements
http://www.lenskold.com/content/articles/rigatuso_aug07.html
The
The
The
Customer Perspective
The
Financial Perspective
Perspectives
Robert S. Kaplan and David P. Norton, Using the Balanced Scorecard as a Strategic Management System, Harvard
Business Review (January-February 1996): 76.
Early BSC
Perspectives of BSC
Modern BSC
http://www.ap-institute.com/resources_whitepapers.asp
http://www.torontospin.com/torontospin/events/doc/presentations/20041124-MarkKozak
-Holland.pdf
http://www.torontospin.com/torontospin/events/doc/presentations/20041124-MarkKozak
-Holland.pdf
http://www.torontospin.com/torontospin/events/doc/presentations/20041124-MarkKozak
-Holland.pdf
Data
Target values
Key
Performance Indicators
stay
year
set targets for each Key Performance
Indicator
identify everything that is easy to measure
and count
collect and report the data on everything that
is easy to measure and count
help
Bad:
Good:
Example KPI
indicators should not repeat each other, but taken together, they should describe
90% of your company or business unit
three or four indicators in each category. If you have more, you are overloading
your scorecard
http://www.apinstitute.com/download
s/100608%20How
%20to%20design
%20Key
%20Performance
%20Indicators.pdf
Type
of data
Raw
Progress
Change
Source
of data
Frequency of data
Target performance
graphs
KPI
http://www.enterprise-dashboard.com/2007/04/05/difference-between-balanced-scorecard-and-enterprise-dashboard/
Culture
change
Human resources
tasks, responsibilities
Performance appraisal, bonuses
Measurement
http://www.scorecardtrainings.com
http://www.balancedscorecard.org
http://www.bscdesigner.com
Some sources
1. Recruitment KPI
2. Training KPI
3. Health and safety KPI
4. Performance KPI
5. Employee loyalty KPI
6. Working time KPI
7. HR efficiency KPI
8. Compensation KPI
9. Labor relation KPI
10. Regulation compliance KPI
11. Employee satisfaction KPI
Attitude about compensation and benefits.
Attitude about coworkers.
Attitude about supervisors / managers.
Attitude about promotions, training.
Attitude about work tasks.
12. HR budget KPI
13. Job leaving KPI
1.
2.
3.
4.
Sales KPI
Marketing KPI
1. Delivery on time
Formula: the number of delivery on time / total delivery.
Apply this formula to each provider and entire company every month.
2. Delivery is not enough quantity, quality
Formula: with the total number of delivery with enough quality/ quantity / the number of
total delivery .
3. Quantity bought over required
This rate determine the number of products using in actual in comparison with quantity
planned.
This rate determines the effectiveness of the purchasing order.
The rate may be identified in quantity or money.
5. Purchasing cost
By value of purchasing / sales value
Compare this with the percentage rate as planned.
6. Cost of purchasing units
This rate is total purchase cost / total sales.
7. Transaction cost unit of purchasing
Formula = (Total cost of purchasing a total cost of goods) / sales turnover.
You can compare this rate with different goods in order to view transaction costs a high or
low
8. Suppliers rating.
Number of suppliers accounting for 80% of the value of goods
The number of suppliers of goods per year
Number of suppliers be removed per year..
Number of new suppliers per year..
Financial KPI
http://www.humanresources.hrvinet.com/financial-kpi/
1. Operating income: Operating Income equals Gross Profit minus SG&A Expenses. It is the
income from current operations.
2. Gross profit: Gross Profit equals Revenue minus Cost of Goods Sold. It identifies the
amount available to cover other operating expenses.
3. Gross profit margin: Gross Profit Margin equals Gross Profit divided by Revenue, expressed
as a percentage.
4. Cost of goods sold (COGS): Cost of Goods Sold includes all expenses directly associated
with the production of goods or services the company sells (such as material, labor,
overhead, and depreciation). It does not include SG&A.
5. Operating margin: Operating Margin equals Operating Income divided by Revenue,
expressed as a percentage.
6. Goodwill: Goodwill is an accounting term used to reflect the portion of the book value of a
business entity not directly attributable to its assets and liabilities.
7. Total Assets: Total Assets are everything of value that is owned by a company.
8. Accounts Payable: Money owed (payable) to suppliers for goods or services purchased on
credit that must be paid within a year.
9. Long-Term Debt: Long-Term Debt represents the amount of borrowings due more than one
year from the date of the balance sheet.
10. Total Liabilities: Total liabilities represent the sum of all monetary obligations of a
business and all claims creditors have on its assets.
11. Cumulative Annual Growth Rate (CAGR):
12. Cash Flow Return on Investments (CFROI): This is similar to ROI, but the only
difference is CASH is used inplace of Profit.
13. SG&A expenses: Selling, General, and Administrative Expenses include all salaries,
indirect production, marketing, and general corporate expenses.
14. Net profit margin: Net Profit Margin equals the Total Net Income divided by Revenue,
expressed as a percentage.
15. Shares Outstanding: Shares Outstanding is the outstanding number of shares of the class
of common stock that is most actively traded.
16. Total Equity: Total Equity equals Preferred Stock Equity + Common Stock Equity.
17. Total Current Assets: Total Current Assets equals Cash and Equivalents + Receivables +
Inventories + Other Current Assets.
18. Other Current Assets: Other Current Assets includes prepayments, deferred charges,
and amounts (other than trade accounts) due from parents and subsidiaries.
19. Inventories: Inventories is merchandise bought for resale or supplies and raw materials
purchased for use in revenue producing operations.
20. Net Receivables: Net Receivables are amounts owed to the company, net of any
provisions for bad debts.
21. Cash: Cash consists of cash and may include cash-like items such as short-term
investments that can be quickly converted to cash.
22. Net Change in Cash: Net Change in Cash is the difference between the Cash and Cash
Equivalents at the beginning of the reporting period minus the amount at the end of the
reporting period.
23. Common Stock Equity: Common Stock Equity is the amount of shareholders equity
attributable to common stock.
24. Preferred Stock Equity: Preferred Stock Equity is the amount of shareholders equity
attributable to the preferred stock issued by the parent company.
25. Other Noncurrent Liabilities: The liabilities that are not assigned to Long-Term Debt or
deferred Income Taxes.
26. Short-Term Debt: Short-Term Debt represents the amount of borrowings (principal and
interest) that must be paid in the near future.
27. Other Noncurrent Assets: Assets that are not assigned to Net Fixed Assets or
intangibles.
28. Total Current Liabilities: Total Current Liabilities equals Accounts Payable + Short-Term
Debt + Other Current Liabilities.
29. Other Current Liabilities: Other Current Liabilities includes all other liabilities not
assigned to Short-Term Debt or Accounts Payable.
30. Net Fixed Assets: Net Fixed Assets are the assets of a company that are of a relatively
permanent nature and are not intended for resale, such as property, plants, and
equipment.