Balance Score card

1. Balanced scorecard

2. What is balanced scorecard?
• It was developed to communicate the multiple linked
objectives that companies must achieve to compete on the
basis of innovation, not just tangible physical assets
• It translates the mission and strategy into objectives and
measures, organized into four perspectives

3. Objectives
• Increase Customer Satisfaction: Transportation must meet
the needs and expectations of the users. The Department will
accomplish this through measuring and communicating
performance and by focusing on safety, system condition,
mobility and excellent customer service.
• .
• Increase Bench Strength: The Department must continue
to develop and retain its current employees through
mentoring and individual development plans, as well as
hiring efficiently and effectively to ensure the right person in
the right job at the right time.

4. Continue….
• Effectively Manage Financial Resources: The Department
must sustain the state's transportation system and services
and invest in all modes of transportation through optimizing
performance, reducing costs, and generating new and
increased revenue streams
• Improve Department Efficiency: The Department must
ensure that both its daily operations and its project delivery
are as efficient as possible while still remaining effective.
This will be achieved through innovation, implementation of
improved technologies and lean process improvement

5. NEED
• Increases the focus on the business strategy and its
outcomes.
• Leads to improvised organizational performance through
measurements.
• Align the workforce to meet the organization's strategy on a
day-to-day basis.
• Targeting the key determinants or drivers of future
performance.
• Improves the level of communication in relation to the
organization's strategy and vision.
• Helps to prioritize projects according to the timeframe and
other priority factors.

6. Process
• Assess the mission and culture of the group. Include
consideration of the organization's challenges, vision, and
partners. Identify the components of the change management
plan that will need to be communicated with the
organization and other key stakeholders.
• Focus on customer needs. Develop a strategy around how
the company can best meet the needs and expectations of
customers or clients. Determine what value the organization
brings to its customers and greater community.

7. Continue….
Define the organization's intent. Focus on the mission
statement. Write specific objectives that correspond with
strategy themes for what the organization wants to
accomplish.
Map out the process. Use strategic mapping to determine
how the organization plans to complete the objectives defined
within strategic themes. Include specific values that the
organization or company will bring to their customers and
other stakeholders.
•

8. Continue….
• Assign initiatives. Make team members aware of their
responsibilities, and how they will be held accountable for
their performance. Get team members on board with the
strategic plan and the direction of the company by showing
them the role they will be playing in its success.
• Implement the process. Use a standardized system to input
and track the objectives and initiatives, and communicate
results. Custom software can be used, or a simple
spreadsheet.
• Evaluate the scorecard and the process. Review the
balanced scorecard. Evaluate whether the objectives are
being met, and if the process to meet the objectives is
working.

9. Strategies
• Financial perspective
• Customer perspective
• Internal business perspective
• Learning and growth perspective

10. Financial perspective
• Measures the financial performance and economic actions
• It indicates whether the company’s strategy , implementation
and execution are contributing to the bottom line customers
• Related to: profitability, EVA, sales growth, generation of cash
flows

11. Customer perspective
• Identifying customers market segments
• Measuring the performance in the market segments
• Measures like customer satisfaction, customer retention ,new
customer acquisition, customer profitability, market and
account share in segment
• Attributes that organizes the value proposition
Product and service attributes
Customer relationship
Image and reputation

12. Internal business process perspective
Identifies the critical internal process in which organizations
must excel.
• Deliver the value proposition that will attract and retain
customers in targeted market segments
• Satisfy shareholder expectation of excellent financial returns

13. Generic value chain model
Customer
Need
identified
Customer
Need
satisfied
Innovation
cycle Operations
cycle
Post sales
Service
cycle

14. Learning and growth perspective
• Identifies the infrastructure that the organization must build to
create long term growth and improvement
• Three principle sources
People
Systems
Organization
• Reskilling employees, enhancing information technology and
systems, aligning organizational procedures and routine

15. Objectives
Strategic financial objectives
• Improve return on spending
• Reduce costs
• Increase revenues
• Reduce risk

16. Strategic customer objectives
• Offer customized value proposition to targeted customer
segments
Define proposition through different customer values
Understand the economic fulfilling various propositions
Target customers whose value propositions can be fulfilled
profitably
• Differentiators act
Perform consistently in the eyes of the customer
Service customers expediently
Eliminate mistakes

17. Internal business objectives
• Innovation
Make the market
Create the product
• Delivery
Market and sell
Distribute and service

18. Learning and growth objectives
• Creating information assets
• Reskilling: strategic job and competencies
• Accountability and reward linkage
• Focus our resources

19. Linking of multiple score card measures into a single
strategy
• Cause and effect relationship
• Performance drivers