Thanks to visit codestin.com
Credit goes to www.scribd.com

Scribd
Upload
46 views2 pages

SIMA Presentattion

The balanced scorecard (BSC) is a tool that translates an organization's mission and strategies into performance measures across four perspectives: financial, customer, internal business processes, and learning and growth. It is used to implement strategy, monitor performance, and inform the planning cycle. A strategy map visually represents the cause-and-effect relationships between objectives across the four perspectives and how they link to the organization's overall objectives. Strategy maps can be used to identify, verify, and communicate these linkages during planning and implementation of the balanced scorecard.

Uploaded by

S2018401 STUDENT
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
46 views2 pages

SIMA Presentattion

The balanced scorecard (BSC) is a tool that translates an organization's mission and strategies into performance measures across four perspectives: financial, customer, internal business processes, and learning and growth. It is used to implement strategy, monitor performance, and inform the planning cycle. A strategy map visually represents the cause-and-effect relationships between objectives across the four perspectives and how they link to the organization's overall objectives. Strategy maps can be used to identify, verify, and communicate these linkages during planning and implementation of the balanced scorecard.

Uploaded by

S2018401 STUDENT
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

In 1992, Norton and Kaplan published their findings in a Harvard Business Review

article that introduced the idea of a Balanced Scorecard.

The balanced scorecard (BSC) is a tool that translates an organisation’s mission,


objectives and strategies into performance measures.

Objective: It is used to implement strategy and to monitor and manage performance,


and may form part of the organisation’s planning cycle.

A BSC is focused around 4 different perspectives.

Four perspectives

Financial perspective. Financial objectives reflect the view of the shareholders or


other stakeholders of the organisation. The performance measures chosen to
support the financial objectives will summurise the financial outcomes of decisions
and activities.
Performance measures may include cost and profit measures, return on investment,
measures based on cash flow, and shareholder value measures

2. Customer perspective. Specific customer objectives may focus on market or sales


performance. Achievement of customer objectives may include measures of
customer satisfaction, customer profitability, market share and the number of new
customers, on-time delivery, the number of new products launched and the number
of product defects.

3. Internal business processes. The internal business processes may be those in the
areas of product design, operations, marketing, sales, distribution and customer
service. Performance measures are those designed to monitor the internal processes
that are critical to delivering products or services to customers and achieving
financial objectives.

They can include measures of cost, product quality, and time-based measures of
business processes. Long-term measures may be created to monitor new product
development or determine the changing needs of customers.

4. Learning and growth. This perspective focuses on the capabilities of the


organisation that must be developed to achieve superior internal processes that
create both customer value and shareholder value. This perspective concentrates on
the infrastructure that firms put into place to deliver long- term growth and
improvement. Performance measures may focus on employee capabilities
information system capabilities; and on the organisational climate for employee
motivation and initiative
Strategy Map definition:
A strategy map is a visual representation that explains the cause and effect
relationships that link the objectives of the perspectives of the BSC and the
organisation’s objectives .

Can you explain how strategy map is used?


For example, a strategy map can explain how objectives that focus on enhancing
intangible assets, such as employee knowledge and capabilities , can lead to the
achievement of objectives that relate to product innovation and quality
manufacturing and improved customer relationships.

Within the planning process managers may use it as a tool to specifically identify and
verify those linkages and to develop the BSC. It also can be used by senior managers
to communicate across the organisation the components of the organisation’s
strategies, and the processes and systems that will help the organisation achieve its
objectives.

You might also like