TO P I C

THE
BALANCED
SCORECARD

GROUP 2
MEET THE TEAM

Luyện Thị Huyền Đinh Thùy Dương Nguyễn Ngọc Ánh

Trang

Who Are We?

Table of contents
3 Non-financial
1 Introdution the
performance measures
Balances Scorecard

2 The balanced 4 Potential measures

scorecard approach

5 Balanced scorecard
advantages and
disadvantages
 BALANCED SCORECARD

What it is??

The Balanced Scorecard is a strategic planning and

management system used to align business activities
to the vision and strategy of the organization by
monitoring performance against strategic goals.
 Balanced
Scorecard
- Was first published in 1992 by Kaplan
and Norton, a book followed in 1996. Concept
- Traditional performance measurements
that only focus on external accounting data
are obsolete.
- The approach is to provide 'balance' to
the financial perspective.

Robert Kaplan & David Norton

WHY USE A BALANCED
- Improve organizational performance by measuring what matters

- Increase focus on strategy and results

SCORECARD?

- Align organization strategy with workers on a day-to-day basis

- Focus on the drivers key to future performance

- Improve communication of the organization's Vision and Strategy

- Prioritize Projects / Initiatives

The balanced scorecard Original Business Perspectives

approach
• The Balanced Scorecard model
suggests that we view the
organization from 4 perspectives.
• Then Develop metrics, collect
data and analyze it relative to each
of these perspectives
 The balanced scorecard approach
THE BALANCED SCORECARD INVOLVES THE FOLLOWING STEPS:

1. Identify the critical success factors for the business from four perspectives .

can
s,
 Measurements
NON-FINANCIAL PERFORMANCE MEASURES

Financial measures don’t

always provide the full story.

Other measures to
Should use both consider could include:
quantitative and qualitative •
ducts developed
the number of new pro

• the rate of employee turnover

measures to minimise • customer satisfaction index
the risk of suboptimal • the number of outstanding
orders
decisions
• the number of warranty claims
Potential measures
BALANCED SCOREDCARD MEASUREMENTS
 EXAMPL
E
Scrumptious Sweets, Inc.
Corporate Balanced Scorecard.
(attribution: Copyright Rice
University, OpenStax, under CC
BY-NC-SA 4.0 license)
 Balanced Scorecard
• It helps in better strategic planning

• It improves business communication

• It helps closely link different projects in

the enterprise

• It helps improve reporting performance

Disadvantages

• It doesn't provide Recommendations

BALANCED SCORECARD
• It is not fully Efficient

• It takes time

• It is High Implementation of cost

• It can show low profit