Professional Documents
Culture Documents
Balanced Scorecard: Dr. Vimal K Aggarwal
Balanced Scorecard: Dr. Vimal K Aggarwal
Financial Customers
Performance
measures
Internal Learning
business and growth
processes
McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2003
The Balanced Scorecard
How do we look
to the owners?
How do we look
to customers?
McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2003
The Balanced Scorecard
Learning improves
business processes.
Improved business
processes improve
customer satisfaction.
Improving customer
satisfaction improves
financial results.
© The McGraw-Hill Companies, Inc., 2003
McGraw-Hill/Irwin
Benefits of Balance Scorecard
IfIf implemented
implemented well:
well:
–– Forces
Forces management
management to to articulate
articulate aa coherent
coherent
strategy.
strategy.
–– Strategy
Strategy isis communicated
communicated throughout
throughout
organization.
organization.
–– Performance
Performance measures
measures areare more
more likely
likely to
to be
be
consistent
consistent with
with strategy
strategy and
and actionable.
actionable.
–– Portfolio
Portfolio ofof measures
measures reduces
reduces gaming
gaming problems.
problems.
–– Feedback
Feedback looploop makes
makes strategy
strategy dynamic.
dynamic.
Cultural/behavioral
Cultural/behavioral
–– Program
Program fatigue.
fatigue.
–– Culture
Culture shock/resistance.
shock/resistance.
–– Every
Every existing
existing performance
performance measure
measure
has
has aa champion.
champion.
–– Gaming
Gaming still
still possible.
possible.
Throughput Time
Throughput Time