Creating an excelbased balanced scorecard to measure the performance of colleges of agriculture paper presented at american agricultural economics association annual meeting long beach, ca july 23 26, 2006 i. Implementing balance scorecard for performance measurement. Balanced scorecard quarterly report january 2016 page 6 of 30 table of contents environmental services cleanliness audit score rate of the visual audit tests. The final element necessary for an effective balanced scorecard is real. Organizational perspectives in balance scorecard financial to succeed financially, how should we appear to our shareholders. Provides an organization with feedback of both the internal business processes and external outcomes, which allows for continuous improvement of strategic performance and results. A balanced scorecard consists of an integrated set of performance measures that are derived from the companys strategy and that support the companys strategy throughout the organization. Its objective is to translate an organizations mission and vision into actual operational actions strategic planning. There are typically four common elements of a balanced scorecard for internal audit as illustrated in exhibit 2, together with examples of common kpis, notably. This has been done by expanding and integrating concepts such as the balanced scorecard, total quality management, performance management and competence management into one overall framework. How well the internal audit function partners with the. This thesis develops a balanced scorecard model based on the attributes of kaplan and nortons balanced scorecard 1992, 1996, 2001. Check out 23 examples of real balanced scorecard projects with strategy maps, kpis, business goals, and bi dashboards. The balanced scorecard, by providing greater openness and visibility of an agencys mission and strategy, can give rankandfile employees a better sense of what their jobs are about, and empower them to improve how that work is done, averson.
Definition and concept an approach to the provision of information to the management to assist with. Introduction need for measurementstrategic planning, university of minnesota strategic planning effort ii. Introduction the purpose of this publication is to describe the process of implementing a balanced scorecard bsc initiative in a small rural hospital setting, including how to identify if an organization is ready for the implementation phase, what the various steps are in the process. Throughout the entire process of building and implementing a balanced scorecard. Tpm total productive maintenance total productive maintenance tpm is a worldwide known management system, born in 1971 in nippon denso, a toyota division in japan, which basic aims the loss elimination in plant processes by continuous training. Hr scorecard business balanced scorecard hr and the business scorecard. Discuss the difference between leading and lagging indicators as measures of hr effectiveness. Find free video tutorials and text guides that will help you to get started with your strategy scorecard. Its a great team building activity, process management tool and, when you do it properly, you end up with an action plan thats fully. One unique charactetitic of the balanced scorecard bsc concept is its evolving nature, as it witnessed a continual transformation process ever since its launch. Developed uniquely for your company, this holistic system enables you to maintain focus and move in a cohesive, consistent direction. People still struggle to find meaningful balanced scorecard kpis.
The balanced scorecard helped the management to understand its objectives and roles in the bigger picture. The balanced scorecard has been translated and effectively implemented in both the nonprofit and public sectors. Each of our nine strategic goals has a number of objectives and indicators, and in this report you will be able. Creating an excelbased balanced scorecard to measure the. Bsc converts organizational mission and strategies into goals and criteria that are categorized into four dimensions including learning and growth, internal business processes, customer, and financial aspects. A full balanced scorecard example including 6 templates. The name balanced scorecard comes from the idea of looking at strategic measures in addition to traditional financial measures to get a more balanced view of performance. The balanced scorecard was developed 12 years ago and has grown in popularity and is used by more than 50% of the fortune 500 companies as a performance measurement and strategic management tool. Like a laser beam, strategy now has a clear path to everyone in the organization. The balanced scorecard retains traditional financial measures. Despite the best intentions of those at the top, lofty. And this is only one indicator, think of all the areas of your business you should be monitoring. Top 4 most important goals balanced scorecard for a ceo kpis. Scribd is the worlds largest social reading and publishing site.
It is interesting to note that scorecard is actually a bit of a misnomer. Niven is a management consultant and noted speaker on the sub jects of performance management and the balanced scorecard. The balanced scorecard provides a excellent tool to guild companies and to create future values. Recently i was approached by an executive director of a nonprofit who asked me about the possibility of the balanced scorecard.
The balanced scorecard tracks all the important elements of a companys strategyfrom continuous improvement and partnerships to teamwork and. Get a consensus around your strategy map or key goals, and then start using the bsc in your leadership team meetings as you build out the rest. The popularity of the balanced scorecard increased over time due to its logical process and methods. The bsc expands the traditional financial measures into three other dimensions to capture a balanced approach to measure performance in an organization. Developing a robust strategy map in balanced scorecard model. Balanced scorecard example the following is an example of how one might develop a balanced scorecard. Its this focus on both highlevel strategy and lowlevel measures that sets the balanced scorecard apart from other performance management methodologies. The customer perspective is perhaps the hardest part of the balanced scorecard. Ronchetti city of naperville, il over a decade after robert kaplan and david norton introduced the balanced scorecard as a strategic planning model in 1992, documented successes from the private sector can be found in much of todays business literature. In this context, several companies decided to adopt new performance management architectures based on the balanced scorecard. The balanced scorecard measures that drive performance. To advance institutional performance by building individual, team, and organizational capability. As both a practitioner and consultant he has developed successful performance management systems for organizations large and small around the globe.
The examples of balanced scorecards presented are entirely hypothetical and rather schematic. Many companies are currently using the balanced scorecard as central organization framework for managerial processes, individual and team goal achievement, compensation, resource allocation, budgeting and planning, and strategic feedback and learning. The following paragraphs attempt to clarify some of these issues. Balanced scorecard exercise lecture 5 starbucks business. These four elements align with your private or public companys mission, vision. The balanced scorecard includes your overarching objectives, measures. Upward airlines reading a balanced scorecard strategy map.
Balanced scorecard basics communicat business systems. Balanced scorecard reporting illustrated in this exhibit these kpis are the basis of further expansion in exhibits 3, 4 and 5. Using the balanced scorecard as a strategic management. The balanced scorecard is a workshop technique for establishing the most useful high level measures by which to monitor your companys units progress and performance against its strategic goals. By translating their strategy into the logical architecture of a strategy map and balanced scorecard, organizations create a common understandable point of reference for all their units and employees. Incorporating the essential elements of strategy within your. When used in the balanced scorecard framework, these key. An it metrics team was established in the 2002 transformation and a pilot balanced scorecard for it as a business unit was developed for the 20023 financial year fy. The balanced scorecard or balance score card is a strategic performance measurement model which is developed by robert kaplan and david norton. Jan 29, 2017 the balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. Balanced scorecard weakness bsc still has many problems that cannot be solved with the balanced scorecard, such as. Balanced scorecard cannot precisely define the compensation system which is usually a follow up results of the performance assessment. An integrated balanced scorecard strategic planning model for.
Jun 09, 2016 a balanced scorecard is not just a scorecard. An integrated balanced scorecard strategic planning model for nonprofit organizations jan l. Hence, it became a management strategy, which could be used across various functions within an organization. When designed properly it can provide an excellent management tool to help keep businesses and organisations on track. Oct 19, 2015 the balanced scorecard is a management system that enables organizations to clarify their vision and strategy and translate them into action. The balanced scorecard can be understood as a management sys. Success stories are beginning to accumulate and studies suggest the balanced scorecard is of great benefit to both these organization types. Introduction to the balanced scorecard and performance. Examples of such utility companies, both from the public and private sector that have adopted the balanced scorecard in their management system are starting to become more numerous in the last years.
Implementing balance scorecard for performance measurement 11 figure 1. Dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit. There are some management tools that seem to have enduring appeal and the balanced scorecard, or bsc for short, is one of those. In addition, it can help provide information on the chosen strategy more. Anytown hospital has just finished a twoday retreat where they revised and updated their mission and vision statements and drafted a strategic plan.
It is a hangover from the early kaplan and norton days when the balanced scorecard was first introduced. Pdf this paper shortly presents a possibility using the balanced scorecard bsc in performance measurement system of construction projects. Incorporating the essential elements of strategy within your organization a guide to the balanced scorecard this guide covers create keeping strategy creation practical, focused and agile empower empowering people through engagement and communications execute manage execution with ownership and accountability. What follows, provides guidance and advice on the development and implementation of a balanced scorecard for those organisations considering the introduction of a. The bsc framework is based on the balance between leading and lagging indicators, which can respectively be thought of as the drivers and outcomes of your company goals. The balanced scorecard bsc is a business framework used for tracking and managing an organizations strategy. The balanced scorecard includes your overarching objectives, measures key performance indicators or kpis, targets for your kpis, and the initiatives that can help you reach those targets.
Example of nonprofit balanced scorecard with 14 kpis. Identify the key performance drivers and enablers that constitute the primary hr deliverables. You dont have to start from scratchuse what you have in your organization as it results to your goals, key measures, and projects. The information included is fictional and is provided to simply demonstrate the process. Browse balanced scorecard templates and examples you can make with smartdraw. Since then, many lessons have been learned on metrics for it, balanced scorecards and how management deal with the. A newly formed team develops an implementation plan for the scorecard, including linking the measures to databases and information systems, communicating the balanced scorecard throughout the. Conceptual foundations of the balanced scorecard 3.
The balanced scorecard is the closest management tool to a crystal ball as you will find. The balanced scorecard requires specific measures of what customers getin terms of time, quality, performance and service, and cost. A brief introduction to the balanced scorecard employees because they wont have spare time to write this information manually on a pad of paper. An example of a balanced scorecard that ceos can use as a template to start building their own strategy execution and performance measurement systems.
It balanced scorecard template pdf if you need help in creating a detailed balanced scorecard with elaborate data on the problem, journey and the steps taken, this template would be handy with its essayed description. The balanced scorecardmeasures that drive performance. With that in mind, lets dive right in to an example of what a balanced scorecard looks like in practice. Senior managers at eci, for demands that managers translate their general mis example, established general goals for customer persion statement on customer service into specific formance. Kaplan and norton describe the innovation of the balanced scorecard as follows. Financials members operations hr deliverables be the financial institution of choice increase financial strength reduce bad loans ratio streamline processes expand.
Continue building on our unique position the only short haul, lowfare, highfrequency, pointtopoint carrier in america. Basic concepts of the balanced scorecard and how it can be used to improve organization performance how the balanced scorecard applies to different types of organizations how to build and implement a scorecard using the. B est of hbr 1992 the balanced scorecard measures that drive performance by robert s. A balanced scorecard is most effective if district administrators can assess key metrics instantly. The purpose of this report is to give you a window on the hospital to see how we are doing in meeting our nine strategic goals that were established in our 201518 strategic plan. Instead of including all of the kpis or metrics, the balanced. Balanced scorecard examples and templates smartsheet. Introduction to the balanced scorecard and performance measurement systems 5 as a result of continued research and innovations over the last 15 years, the bsc has gone through an evolutionary process of improvement, from performance measurement 19901996 to performance management 19962000, to becoming a globally. The purpose of the iadc supply chain committee is to facilitate the exchange of best.
Linking the theoretical model and data needs key to the use of a balanced scorecard methodology are the steps that link the larger goals of the university to speci. Balanced scorecard exercise lecture 5 free download as powerpoint presentation. The balanced scorecard should focus on the strategy of the business and the maintenance department, by translating the vision into operational goals. Organizational form that is suitable for the development of processes is within the organization. Strategy maps and balanced scorecards constitute the measurement technology for managing in a knowledgebased economy. The reminder of this post will walk through how to create a balanced scorecard for your department. Describe the value and role of the hr scorecard dashboard. Research paper on balanced scorecard strategic management. O b j e c t i v e s m e a s u r e s t a r g e t s i n i t i a i v e s customer to achieve our vision, how should we appear to our customers. The balanced scorecard focuses on factors that create longterm value traditional financial reports look backward reflect only the past.189 218 503 1398 55 1067 1129 669 861 556 982 598 465 85 345 1279 254 187 318 139 397 867 220 1252 777 762 874 990 463 232 1466 798 704 364 967 778 1390 954 1318 812 981 528 162