Balance Score Card


The concept of Balanced Scorecard was developed in
the early 1990’s by Robert S. Kaplan and David P.
Norton.


The Balanced Scorecard (BSC) is a conceptual
framework enabling an organization in clarifying its
vision and strategy, thus effectively translating them
into action. This performance management approach
provides feedback around both the internal processes
and external outcomes, essentially focusing on
four indicators: Customer Perspective, Internal-
Business Processes, Learning and
Growth and Financials.
What is a Balanced Score Card?

A measurement system

A strategic management system

A communication tool
 BSC as a Measurement System

It allows the organization to assess progress in
implementing strategy

It allows the organization to benchmark its
progress against great practices outside and
inside the organization, and over time

It provides a diagnostic framework for tracking
relationships and impact among strategies
 Measures four perspectives

- Customer Relations

- Financial

- Internal Service Process

- Learning, Innovation and Growth

 O M T I
O M T I

Objectives Measures Targets Initiatives O M T I

BSC as a Measurement System

Financial

Customer Vision and Internal Service

Relations Process
Strategy

Learning,
Innovation and
Growth
 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?
 Dimensions of Quality:

Efficiency
 Internal Service Process Perspective
 What critical processes must we excel at to
satisfy our customers/stakeholders?
 What must be done internally to meet
patient/customer expectations?
 Dimension of Quality:

Effectiveness

Appropriateness

Safety
 Customer Relations Perspective
 Who are our target customers?
 How do our patients/customers see us?
 How do patients/customers rate our
performance?
 Dimension of Quality:

Accessibility

Acceptability

Continuity
 Learning, Innovation and Growth
Perspective

 How can we continue to improve?

 What capabilities and tools do our
employees need to execute our
strategy/goals?
 Dimension of Quality:

Competence

Participation
BSC as a Strategic Management System

It allows an organization to see all of the
drivers of organizational value and
performance in a holistic conceptual
framework

It creates a pathway for the creation and
implementation of strategy and
measurement of progress that is fully
aligned throughout the organisation.
 Translating with the BSC

Mission
Desired state
Vision
Differentiating activities
Strategy/Goals

What must be done

Objectives
well to implement
In each perspective
strategies

How strategic Measures

success is In each perspective
measured
 BSC as a Communication Tool

It allows an organization to articulate its chain
of value creation within the organization and
to the world at large

It provides a platform for planning and
communication of planning activities
BSC describes and translates strategy to
employees through clear and objective
performance measures

Example
Goal: To provide cost effective and
efficient services
Objectives: Reduce costs
Increase productivity
Measures: Supply costs
Workload
The introduction of a Balanced Scorecard can affect
changes within the organization

Process changes: Organisation changes:

•Measures •Roles
•Optimize •Tasks
•New processes •Responsibilities
•Structure
Culture changes: IT changes:
•Values •Data warehousing
•Reward system •Data mining
•Relations •Adjustment of current
•Manners systems/outsourcing
 AVINASH

THANK
APARNA NIVEDITA
YOU

ROHIT