Scientific information report

Reporter: Trinh Le Tan

The Balanced Scorecard

Presented by Trinh Le Tan

Bridging the gap between short-term budgeting and long-term strategy

Robert Kaplan and David Norton’s

Content

1.1 The necessity of using Balanced scorecard. 1.2 Introduction of Balanced scorecard 1.3 The fact of applying Balanced scorecard in

Vietnam 1.4. Proposing for medium and small business

in Vietnam

1.1 The necessity of using Balanced scorecard.

The evaluation of operation result in business is changed by two factor:

Increase in intangible asset Limitation of traditional measure

Measure that driven performance: Balanced scorecard

1.2 Introduction of Balanced scorecard

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

1.2 Introduction of Balanced scorecard

Robert Kaplan and David Norton first publicized the balanced scorecard in a series of journal articles and published this concept in their book, The Balanced Scorecard.

Since then it has evolved to become more workable in practice, focusing more on design processes.

1.2 Introduction of Balanced scorecard

The scorecard emerged in response to organizations’ gap between short-term financial activities and long-term strategy.

It is not a replacement for budgeting but merely a complement in the sense allows businesses to set performance benchmarks in non-financial areas.

1.2 Introduction of Balanced scorecard

Performance standards are specifically applied to four perspectives: customer relations, finance, internal processes and learning and growth.

To ensure that both short-term and long-term goals are correlated, the scorecard relies on four processes: translating the vision, communicating and linking, business planning and feedback and learning.

1.2 Introduction of Balanced scorecard

Translating the vision: helping all employees understand how their day-to-day work contributes to long-term goals.

Communicating and linking: disseminating long-term goals both up and down an organizational hierarchy, ensuring that both departmental and individuals objectives are in alignment.

1.2 Introduction of Balanced scorecard

Business planning: taking long-term strategy and using it as the basis for how resources and capital are allocated.

Feedback and learning: the scorecard enables strategic and real-time learning because it measures daily performance and spending in the context of overarching goals, allowing organizations to make necessary changes.

Balanced scorecard

4 Perspective in Balance Scorecard

Strategic Objectives in Financial

Strategic Objectives in Customer

Strategic Objectives in Internal Process

Strategic Objectives in Learning and Growth

1.3 The fact of applying Balanced scorecard in Vietnam

1.4 Proposing for medium and small business in Vietnam

Define direction of business clearly Understanding of business model of manager Balance between long-term development and

daily high pressure. Direction of business development flexibility.

Thank you for your listening

Questions