Test

In: Business and Management

Submitted By Ashok
Words 694
Pages 3
Balanced Scorecard 101
A Brief Overview of the BSC Methodology

Steve Logan Department of Energy 202 287-1383 Steve.Logan@hq.doe.gov

Presentation to the BSIG October 2004

2

“One accurate measurement is worth more than a thousand expert opinions.” - Admiral Grace Hopper,
USN

3

What is a Balanced Scorecard?
Definition of BSC as a strategic management system Steps in a strategic management system:

1. Clarify and translate vision and strategy 2. Communicate and link strategic objectives and measures 3. Plan, set targets, and align strategic initiatives 4. Enhance strategic feedback and learning

4

Where Did the BSC Come From?
A long time ago in a far away galaxy…

Then

(pre 1970s)

Now

(post 1970s)

Industrial Revolution Financial Measures Tangible Assets Lagging Indicators
(aka: outcome measures, historic measures)

Information Age Financial plus non-financial Measures Non-tangible assets (invisible assets) Leading Indicators
(aka: performance drivers, predictive measures)

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The Balanced Scorecard Framework

6

The BSC reflects the balance between:
Short and long term objectives Financial and non-financial measures Lagging and leading indicators (i.e., outcome measures vs performance drivers) External and internal performance perspectives

7

Some Generic BSC Measures
Perspective Financial Customer Internal Business Learning and Growth Measure Return on investment and economic value-added Satisfaction, retention, market, and account share Quality, response time, cost, and new product introductions Employee satisfaction and information systems availability

BALANCED SCORECARD
PERSPECTIVES AND OBJECTIVES
CUSTOMER
- Customer Satisfaction - Effective Service/Partnership

8

FINANCIAL
- Optimum Cost Efficiency of Purchasing Operations

MISSION VISION STRATEGY
LEARNING AND GROWTH
-…...

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