THE BALANCED SCORECARD. Dr. Małgorzata Wiśniewska

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1 THE BALANCED SCORECARD Dr. Małgorzata Wiśniewska

2 Final Assessment The Balanced Scorecard for TKACZ sent in PDF. Presence.

3 To Do 1. Download the files BSC TKACZ and BSC Example from teaching materials ( 2. Read the case and develop the areas of company s activities/interests. 3. Prepare the theoretical characteristic of the Balanced Scorecard for the next meeting.

4 General plan of work 1. Characteristic of TKACZ 2. Mission and vision 3. Strategic goals and strategy 4. Strategic perspectives: Customer, Internal business processes, Learning and growth, Financial.

5 1. Characteristic of TKACZ Characteristics of: a. Key products and/or services b. Key customers c. Strategic suppliers d. Closest competitors e. Finances

6 What is the BSC? 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. It was originated by Drs. Robert Kaplan (Harvard Business School) and David Norton.

7 What is the point of the BSC? Translate organizational vision and strategy into goals in reference with the following perspectives: Customer Internal business processes Learning and growth Financial

8 What do we do? Example mission for Nike To bring inspiration and innovation to every athlete in the world.

9 What we want to do? Example vision for PepsiCo PepsiCo's responsibility is to continually improve all aspects of the world in which we operate - environment, social, economic - creating a better tomorrow than today. Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

10 What do we want to achieve and how? Strategic Goals and Strategy SMART RULE Specific Measurable Achievable Realistic Timed Increase the sales volume of dark chocolate bars. Increase the sales volume of dark chocolate bars per 5% in the Wielkopolska until 2017.

11 Strategic perspectives How are we perceived by customers? FINANCES CUSTOMER MISSION VISION STRATEGY What should we improve? INTERNAL PROCESSES What are the conditions under which we sign the contracts? LEARNING AND GROWTH What is that we are continously optimizing?

12 STRATEGIC PERSPECTIVES CUSTOMERS How should customers perceive us to let us realize our strategy? FINANCES What kind of cooperation let us succeed? MISSION VISION STRATEGY INTERNAL PROCESSES What processes should we develop to satisfy our customers, contractors, etc.? LEARNING AND GROWTH How can we maintain our ability to grow and develop?

13 CUSTOMERS Customer satisfaction Effectiveness of services Partnership Aftersales services FINANCES Optimum cost efficiency of purchasing operations MISSION VISION STRATEGY LEARNING AND GROWTH Access to key information Employee satisfaction Organizational structure adjustment Training INTERNAL PROCESSES Realization of orders Delivery on time Internal communication PERSPECTIVES AND OBJECTIVES

14 Source: Example, p. 6

15 Source: Example, p. 7

16 Source: Example, p. 15

17 Source: Example, p. 17