Balanced Score Card

Harish G Pai
Neetu Dhoot
Manish Tawde
Mayank Paua
 Thoughts on Performance Management

When you can measure what you are speaking

about, and express it in numbers, you know
something about it; but when you cannot
measure it, when you cannot express it in
numbers, your knowledge is of a meager and
unsatisfactory kind.
William Thompson (Lord Kelvin), 1824-1907
 Table of contents - Agenda

• Balanced Score Card (BSC) basics

• How to prepare a BSC
• Case Study – TALIC
• Opportunities & Challenges
 MISSION, VISION, OBJECTIVE &
STRATEGY
• Mission : Defines the fundamental purpose of an
organization or an enterprise, basically describing
why it exists.
• Vision : Defines the desired or intended future state of
a specific organization or enterprise in terms of its
fundamental objective/ and or strategic direction.
• Objective: They are the ends toward which effort and
action are directed or coordinated.
• Strategy : A unified, comprehensive and integrated
plan designed to assure that the basic objectives of the
enterprise are achieved.
 What is balanced Score card ?

• A new approach to strategy implementation

• Developed in the early 1990’s by Drs. Robert
Kaplan and David Norton
• The BSC is a comprehensive management
performance control tool with a strong focus
on vision and strategy
• The strategy is translated into specific tactical
performance-driving activities
• Measures are established for each activity
 BSC Works on 4 perspectives

Internal Service Financial

Process

To satisfy our shareholders and To succeed financially how

customers, what business should we appear to our
process must we excel at? shareholders ?

Vision and
Customer Strategy Learning and
Growth
To achieve our vision, how should To achieve our vision, how will
we appear to our customer we sustain our ability to
change and improve ?
 Financial Perspective

 What financial steps are necessary to ensure the execution of

our strategy/goals?
 Are the program’s/ department’s goals, implementation, and
execution contributing to the bottom line?
 Are we meeting operational and financial targets?
Internal Service Process Perspective
 What critical processes must we excel at to satisfy our
customers/stakeholders?
 What must be done internally to meet customer
expectations?
 Customer Relations Perspective

 Who are our target customers?

 How do our customers see us?
 How do customers rate our performance?

Learning and Growth Perspective

 How can we continue to improve?

 What capabilities and tools do our employees need to execute
our strategy/goals?
 TALIC vision statement

“To be the most trusted life insurance company that values

customers’ financial well being, consistently delivering best-
in-class solutions and respected by all.”
• Most Trusted : by consistently delivering on our promise to
policyholders, distribution partners, to one another as
professionals.
• Values Customers : with customer at centre, growth is bound
to happen.
• Respected by all : Good human relations are essential to the
success of any enterprise…JRD Tata
 TALIC operations mission statement

The team will align it’s objectives to enable business &

strive for excellence with focused efforts in following
areas:
– Scalability, expansion & improved time to market.
– Customer service & quality improvement
– Strategic projects
– Risk management
– Operational excellence
– People development
 BSC as a Measurement System – 4 perspectives

Internal Service Financial

Process

Distribution Servicing Profitability

Vision and
Customer Strategy Learning and
Growth
Complaints Handling Operations Training conducted
POS FTR on periodic basis
 Major Opportunities

• Good measure for qualitative information

• Allows combining several measurements
• Improves Internal & External
Communication
• Helps to integrate strategic planning &
Management
 Major Challenges

• Maintaining Momentum
• Engaged leadership
• Myth : It’s a short term project
• Getting participation from all
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