ByNaveed M. Khan

INTRODUCTIONIn 1992, Robert S. Kaplan and David Norton

introduced the balanced scorecard, a concept for measuring a company's activities in terms of its vision and strategies, to give managers a comprehensive view of the performance of a business

Key Element The key new element is focusing not only on

financial outcomes but also on the human issues that drive those outcomes, so that organizations focus on the future and act in their long-term best interest

BALANCE SCORE CARD

FinancialsAccording to each perspective of the

balanced scorecard there are a number of KPIs.

* Financial o Cash flow o ROI o Financial Result o Return on capital employed o Return on equity

Customer* Customer Delivery Performance to Customer - by

Date Delivery Performance to Customer - by

Quantity Customer satisfaction rate Customer retention

Internal Business Processes

Number of Activities Supply Chain Management Operational Efficiency

Learning & Growth

Investment on Employee’s Training Growth within the company Research and Innovation

Cause and Effect Relationship

Cause and Effect Relationship

Performance Drivers A good balance score card also have a mix of

outcome measures and performance drivers Companies with greatly improved

performances must identify how to increase sales to existing customers

Example of TCP The four perspective should be considered

template not a straight jacket

Balanced Score Card of TESCO

Customer

Earn lifetime loyaltyThe aisles are clearI can get what I wantThe prices are goodI don’t want to queueThe staff are great

Finance Grow sales

Maximize profits

Manage our investment

Operations Shopping is better for customersWork is simpler for staffThe way we operate is cheaper for TescoThe way we operate is responsible and safe

People/ Learning & Growth We trust and respect each other

My manager supports me to do a good job

My job is interesting I have the opportunity to