balanced scorecard: an introduction

Balanced Scorecard:

An Introductionthexplorer008@gmail.com

M A Parry Mobile: +91 9906415415School of Business Studies,Islamic University of Science and Technology,Awantipora

Introductions

My backgroundM A Parry Assistant Professor,SBS, IUST,Awantipora Your background

– Name, institution, position– Why you selected /attend this session and what you

expect from it.

Session Description

The session aims to introduce BSC in its originality & later as a customized tool in an Educational setup

Vision and MissionVision

Future: WHERE, purpose and value of Business;

What makes us different? What, for whom and

why? Who are the

organizations primary clients( stakeholders) & and our responsibilities

Mission

Now Where do we aim to be? Where, when and how? Memorable and

engaging, alignment with organisational values and culture

Administration vs ManagementAdministration

Formulation of strategic plans and policies: thinking function

Top level Owners Motivating and

controlling

Management

Implementation of the

plans: doing function

Middle and lower level

Partners

Planning and organizing

Balanced Scorecard Basics: Core

A strategic Planning and Management system: Core processes ( Drs K & N):

1. Clarifying and translating vision into strategy;

2. Communicating strategic objectives and measures and linking them to operations;

3. Planning and setting targets to align strategic initiatives ; and

4. Enhancing strategic feedback and learning .

HISTORY BSC

The first BSC was created by Art Schneiderman at Analog Devices-1987

Kaplan and David P. Norton published papers at HBR 1992 and 1993

Book  The Balanced Scorecard 1996 The Strategy Focused Organization : strategic

linkage model ( Strategic map): 3rd Generation BSC

Balanced Scorecard Defined:

The Balanced Scorecard (BSC) is a strategy performance management tool - a semi-standard structured report, supported by design methods and automation tools, that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions.

Strategic Planning and Management

Strategic planning is an organization's process

of defining its strategy, or direction, and

making decisions on allocating its resources

to pursue this strategy. It may also extend to

control mechanisms for guiding the

implementation of the strategy.

STRATEGY

Strategy includes processes of formulation and implementation of broader objectives;

Involves synthesis via strategic thinking; Elements of a competitive strategy: a) strengths

and weaknesses;b) Personal values of the key implementers;c) Industry opportunities and threats, and d) Broader societal expectations

Balanced Score Card as they knew

1. "The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation.“ Drs K&N

What’s BSC?

A strategic planning and management system used to:

align business activities to the vision and strategy;

Improve internal and external communications; And monitor organizational performance

against strategic goals.

-Monitors the performance of all or part of an organisation,

towards strategic or operational goals;

-Uses financial and non-financial performance measures

(lagging and leading indictors);

-You can't tell when you're winning if you don't keep score,

the balanced scorecard helps track your hits and misses.” -

Eric Berkman

WHAT BSC does

OBJECTIVE of BSC

Translate organisational vision and strategy

into a specific objectives and measures in

four main perspectives: finances, customers,

internal business processes and learning/

growth.

1. FINANCIAL e.g., cash flow, sales growth, operating income, return on equity,

2.CUSTOMER e.g.,percent of sales from new products, on time delivery, share of important customers’ purchases, ranking by important customers,etc

3.OPERATIONS ( Internal Processes) e.g.,cycle time, unit cost, yield, new product int reductions,etc

4.INNOVATIONS ( Learning and Growth) e.g.,time to develop new generation of products, life cycle to product maturity, time to market versus competition,etc

Perspectives of BSC

Assessment & BSC in Academics

Assessment is an on-going process aimed at understanding and

improving student learning. It involves:

1. Making our expectations explicit and public;

2. Setting appropriate criteria and high standards for learning quality;

3. Systematically gathering, analyzing, and interpreting evidence to

determine how well performance matches those expectations and

standards;

4. And using the resulting information to document, explain, and

improve performance.

Performance Excellence Framework

Core Values and Concepts for Excellence in Education:

Visionary Leadership: Learning –centred education; Organisational and personal learning; Valuing faculty, staff, and partners; Agility and Focus on the Future ( formative &

Summative assessments); Managing for innovation; Social Responsibility; Result & value orientation and system

perspective

1. Translating the vision into operational goals;

2. Communicating the vision and link it to individual

performance;

3.Business planning; index setting

4. Feedback and learning, and adjusting the

strategy accordingly.

Steps in Developing a Balanced Scorecard

Questions/Concerns

Discovering and Rediscovering a BSC year after year:

1. How do we know if we assessing what really matters? 2. How do we get at the big picture through the details?

(Seeing the forest vs. the trees)3. How do we develop language that better fits the Student

Affairs/Higher Education culture? As well as the Higher Learning Commission and Accreditation Expectations?

4. How do we incorporate our mission?5. How do we link our strategic planning into the process?

Priorities for Education

Diversity ( Disability access, ethnicity,etc)

Student Learning Experiences;

Academic Excellence,

Outreach and Engagement, and

Resource Management

External and Internal Driven Assessment

Externally driven

Audience: Students, Govt bodies, Revenue generators;

Concerns: Internal issues

Focus: relevant audiences

Format: Report cards, rankings, etc.

Internally Driven

Faculty, academic and non-academic administrators;

Resource allocation, organisational agenda

Political coalitions, Institutional reports

Criticism of BSC

Empirical , failed to include any citations Technical flaws in the methods and design of the

original Balanced Scorecard; Does not provide a bottom line score or a unified

view with clear recommendations; Implementation is difficult and sometimes

frustrating 

How BSC scores for self: Who Designed?

Perspective names

Uses and Influences of BSC

Linkages

Role of BSC

“Living a balanced life must result in a balanced scorecard after the game of life.” M A Parry

“Education is not about the preparation for life: it is life itself.” J.Dewey