BALANCE SCORE CARD

Contents

Corporate Performance Management Framework

Performance management component

Performance Management Cycle

Balance score Card

It is the management tool that provides stakeholders with a comprehensive measure of how the organization is processing towards the achievement of its strategic goals.

Balances financial and non financial measures.Balances short and long term measures. Balances performance drivers(leading

indicators) with outcome measures(lagging indicators).

Leads to strategic focus and organizational alignment.

4 Perspective in Balance Scorecard

Strategy and Balance Scorecard

Strategy Framework Map

Financial Perspective

In private companies financial perspective is the main objective that is the ultimate goal.

The strategic goal of financial perspective is the long term shareholder value which is driven by two factors-

A) Revenue growthB) Cost efficiency

Strategic Objectives in Financial

Customer Perspective

It covers the following elementA) Customer acquisitionB) Customer retentionC) Customer profitabilityD) Market shareE) Customer satisfaction

Strategic Objectives in Customer

Internal Process PerspectiveIt has four main component:-

Operations Management Process.Customer Management Process.Innovation Process.Regulatory and Social Process.

Strategic Objectives in Internal Process

Learning and Growth Perspective

It has three important components:-

A) Human CapitalB) Organizational CapitalC) Information Capital

Strategic Objectives in Learning and Growth