Balanced Scorecard
A proper strategic planning and management system which is used extensively by us in business and industry and nonprofit organizations worldwide to align business activities to the vision and strategy of different organizations, improve internal and external communications, and monitor organization performance over strategic goals.
Learning Objectives: Explain the evolution of measurement and strategic management systems; define terms; list reasons for adopting a balanced scorecard system; identify the six steps needed to build a scorecard system and the three steps needed to implement these systems; identify challenges that need to be overcome; discuss indicators of successful systems; discuss time periods for a scorecard project; contrast the differences and similarities in scorecard systems for different organizations; discuss a typical BSC cycle.
- Introduction to performance management and measurement
- Definitions
- Balanced scorecard history
- Reasons for undertaking a balanced scorecard project
- Similarities and differences among BSC and other performance systems
- Advantages of using BSC performance systems
- Contrast private sector and public agency use of scorecards
- Key questions the BSC seeks to answer
- Sample BSC performance measures
- The Nine-Step Methodology for building and implementing a balanced scorecard project
- Meeting the challenges of scorecard systems
- Indicators of successful projects
Learning Objectives: Identify the six building steps — Using an organization assessment to set vision, mission and strategy, Defining strategic themes, Choosing perspectives and developing objectives, Developing a Strategy Map, Defining performance measures, Developing Initiatives.
- Case studies and examples will be selected from among several commercial, public sector and not-for-profit organizations that use the balanced scorecard for strategic management.
- Using an organizational assessment to set vision, mission, and strategy
- Identify customer groups and develop the Customer Value Proposition
- Develop Strategic Themes and Strategic Results
- Develop Strategic Objectives and strategic success drivers
- Strategy mapping – develop cause-effect relationships among the objectives
- Derive Strategic Performance Measures, Targets, and Thresholds
- Develop Strategic Initiatives Define Criteria for Selecting Initiatives
Learning Objectives: Identify and understand the three implementation steps – Using computers to communicate performance information, Cascading the scorecard throughout the organization, and Using scorecard information to improve performance
- Examples will be selected from among several commercial, public sector and not-for-profit organizations that use the balanced scorecard for strategic management.
- Software Demonstration: Performance Management Information Software options
- Implementation issues
- Aligning strategy and work throughout the organization
- Collect, verify and validate performance data
- Transforming data into information
- Software options for managing performance information
- Developing an internal and external communication plan
- Cascading the scorecard throughout the organization
- Employee motivation
- Linking strategy to resource decisions
- Linking performance to rewards
- Scorecard roll out, training, and change management
- Using performance information to improve organization performance
Learning Objectives: Understand the challenges of integrating balanced scorecard systems with other enterprise-wide systems; overcoming challenges to implementation
- Exercise: examine strategic change readiness in your organization.
- Integrating the scorecard with other enterprise management systems
- Integrating the scorecard with other enterprise information systems
- Best practices
Learning Objectives: applying the BSC to your organization's needs; discuss company-specific issues
- Exercise: Develop a scorecard action plan for your organization.
- Overcoming obstacles and challenges within your organization
- Integrating the scorecard with other enterprise management and information systems
- The role of consultants
- Time and schedule estimates
- Develop an Action Plan based on your organization’s readiness