CUADRO DE MANDO INTEGRAL

Facultad de Estudios a Distancia UMNG

28 Nov 201409:57

Summary

TLDRThe video script discusses the Integral Management Dashboard, also known as the Balanced Scorecard, emphasizing the importance of formulating a great strategy and the company's ability to measure and verify its results. Developed by Professors Kaplan and Norton, the Balanced Scorecard emerged from the realization that financial measures alone were insufficient for comprehensive strategic assessment. The tool translates corporate strategy into interconnected, measurable objectives linked to business actions, aiming to align the entire organization with the strategy. It encompasses four perspectives: financial, customer, internal processes, and learning and growth. The financial perspective focuses on maximizing profitability through revenue growth and productivity. The customer perspective aims to deliver added value to encourage customer loyalty and acquisition. Internal processes involve operational management, customer management, innovation, and regulatory and social processes. Lastly, the learning and growth perspective addresses intangible assets like human capital, information capital, and organizational capital, which are crucial for strategy execution. The script highlights that objectives across these perspectives are interrelated, with financial outcomes dependent on satisfying customer objectives, which in turn rely on optimized internal processes and the application of intangible assets.

Takeaways

📈 The Balanced Scorecard (BSC), also known as the Integrated Management Dashboard, is a powerful management tool that helps companies translate their strategy into measurable objectives and align the entire organization with these objectives.
💡 BSC was developed by Robert S. Kaplan and David P. Norton as a response to the limitations of traditional financial indicators in measuring strategic performance.
🔍 BSC emerged from a study conducted in the 1990s that revealed companies relied heavily on financial indicators, which presented a historical view of the company rather than a current or future perspective.
📊 The tool consists of four perspectives: financial, customer, internal processes, and learning and growth, which are interconnected and interdependent for achieving the company's overall strategy.
💰 The financial perspective focuses on maximizing profitability through revenue growth and productivity, which includes increasing income and improving the efficiency of financial and physical assets.
🛍️ The customer perspective emphasizes delivering added value to customers, with common indicators being customer satisfaction, retention, acquisition of new customers, and customer profitability.
🏭 The internal processes perspective outlines how the company can deliver the value proposition to customers by optimizing operations, managing customer relationships, innovating, and ensuring regulatory compliance.
🧠 The learning and growth perspective deals with the intangible assets of the company, such as human capital, information capital, and organizational capital, which are crucial for executing the company's strategy.
🔗 The objectives of the four perspectives are causally linked, starting from the financial outcomes, which can only be achieved if customer objectives are met, leading to a focused and internally consistent strategy.
🤝 BSC aims to mobilize change through leadership and make strategy a continuous process that becomes part of the daily work of all employees, thereby aligning the organization with the strategy.
📚 Kaplan and Norton's framework emphasizes the importance of having a capable workforce with the necessary skills and knowledge, supported by effective information systems and infrastructure.
🌟 The success of a company's strategy using the BSC depends on the effective application of its intangible assets and the alignment of the four perspectives to create value.

Q & A

What is the Integral Management Dashboard also known as?
-The Integral Management Dashboard is also known as the Balanced Scorecard.
Why is the Balanced Scorecard considered an important tool for companies?
-The Balanced Scorecard is important because it supports companies in translating their strategy into measurable objectives and aligns the entire organization with the strategy.
Who developed the concept of the Balanced Scorecard?
-The concept of the Balanced Scorecard was developed jointly by professors Robert S. Kaplan and David P. Norton.
What was the main issue with companies' management dashboards in the 1990s according to the study?
-The main issue was that companies' dashboards were primarily based on financial indicators, which presented a view of the past rather than the present or future, leading to less effective strategic decision-making.
How does the Balanced Scorecard help to focus the organization on the company's strategy?
-The Balanced Scorecard translates the company's strategy into interlinked objectives that are measurable through indicators and are connected to business actions, ensuring that the entire organization is focused on the strategy.
What are the four perspectives of the Balanced Scorecard?
-The four perspectives of the Balanced Scorecard are the financial perspective, customer perspective, internal business processes perspective, and learning and growth perspective.
What are the two basic points for maximizing financial development in a company?
-The two basic points for maximizing financial development are increasing revenue through selling more products or diversifying, and improving productivity by reducing direct costs and using financial and physical assets more efficiently.
What are some common indicators of good results from the customer perspective?
-Common indicators include customer satisfaction, customer retention, acquisition of new customers, and customer profitability.
How do internal business processes contribute to the financial objectives of a company?
-Internal business processes contribute by providing and delivering value products to the customer and improving processes to reduce costs, which in turn supports the financial objectives.
What are the three categories proposed by Kaplan and Norton for intangible assets in the learning and growth perspective?
-The three categories are human capital, informational or knowledge capital, and organizational capital.
How are the objectives of the four perspectives of the Balanced Scorecard interconnected?
-The objectives are interconnected through cause-and-effect relationships, where financial results can only be achieved if customer objectives are met, which in turn depend on the value proposition created by optimized internal processes.
What is the key to creating value and a focused, internally consistent strategy according to the Balanced Scorecard approach?
-The key is aligning the objectives of the four perspectives, ensuring that they work together to support the overall strategy of the company.

Outlines

00:00

📊 Introduction to the Balanced Scorecard

The first paragraph introduces the concept of the Balanced Scorecard, also known as the Integrated Command Chart (CEMÍ). It emphasizes the importance of measuring and verifying a company's strategy alongside formulating an excellent strategy. The Balanced Scorecard is a management tool that translates a company's strategy into interconnected, measurable objectives linked to business actions. Developed by Kaplan and Norton, it addresses the limitations of financial indicators alone in measuring strategies. The paragraph also explains that the tool aims to align the entire organization with the strategy, making it part of the daily work of all employees. It outlines four perspectives of the Balanced Scorecard: financial, customer, internal processes, and learning and growth, with the financial perspective focusing on maximizing profitability through revenue growth and productivity.

05:01

💼 Customer and Internal Process Perspectives

The second paragraph delves into the customer and internal process perspectives of the Balanced Scorecard. It discusses the importance of delivering added value to customers, which is reflected in indicators such as customer satisfaction, retention, acquisition of new customers, and customer profitability. The internal process perspective explains how to create and deliver this value, focusing on operational processes that produce and deliver products or services to customers. Kaplan and Norton categorize internal processes into four groups: operational management, customer management, innovation, and regulatory and social processes. The paragraph also touches on the intangible assets of a company, including human capital, informational capital, and organizational capital, which are crucial for strategy execution. It concludes by stressing the interconnection of the four perspectives and the importance of aligning them to create value and a focused, internally consistent strategy.

Mindmap

Keywords

💡Balance Scorecard

The Balance Scorecard is a strategic management tool that provides a comprehensive view of an organization's performance. It was developed by Robert S. Kaplan and David P. Norton to address the limitations of solely financial measures in evaluating a company's strategy. In the video, it is emphasized that the Balance Scorecard translates a company's strategy into measurable objectives that are linked to actions and are aligned with the company's vision and operations.

💡Strategic Management

Strategic management involves the process of setting goals, developing an action plan to achieve them, and monitoring the progress towards these goals. The video stresses the importance of not only formulating an excellent strategy but also the company's ability to measure and verify its results, which is where the Balance Scorecard plays a crucial role.

💡Financial Perspective

The financial perspective in the Balance Scorecard is concerned with the financial outcomes of the strategy. It includes objectives such as maximizing profits and growth of assets for shareholders. The video mentions that financial indicators can show if the strategy is achieving its intended financial goals, such as increasing revenues and improving productivity.

💡Customer Perspective

The customer perspective focuses on understanding and meeting the needs of a company's customers. It involves providing added value that encourages customer loyalty and acquisition. The video script discusses how this perspective is crucial for delivering a compelling value proposition that satisfies and retains customers, with indicators like customer satisfaction and retention.

💡Internal Processes

Internal processes are the operations and processes within an organization that create and deliver its products and services. The video explains that these processes are vital for providing value to customers and for improving and reducing costs, which in turn affects the financial perspective.

💡Learning and Growth

Learning and growth pertain to the intangible assets of an organization, including its human capital, information systems, and organizational culture. The video emphasizes that these assets are essential for supporting the strategy and for continuous improvement and innovation within the company.

💡Human Capital

Human capital refers to the skills, competencies, and knowledge of an organization's workforce. In the context of the video, it is highlighted as a key component for executing the company's strategy by ensuring that employees are capable and knowledgeable.

💡Information Capital

Information capital involves the systems, networks, and infrastructure required to support the strategy. The video script mentions that having access to the right information systems is crucial for backing up the strategic proposition of the company.

💡Organizational Capital

Organizational capital refers to the company's ability to mobilize and sustain the change necessary to execute its strategy. The video discusses how this is important for the alignment of the entire organization with the strategic objectives.

💡Cause-and-Effect Relationships

The video script explains that the objectives of the four perspectives in the Balance Scorecard are interconnected by cause-and-effect relationships. This means that achieving financial results is contingent upon satisfying customer objectives, which in turn depend on efficient internal processes and a capable learning and growth perspective.

💡Alignment

Alignment is the process of ensuring that all parts of an organization work together towards a common goal, which in this case is the company's strategy. The video emphasizes that aligning the objectives of the four perspectives is key to creating value and a focused, internally consistent strategy.

Highlights

The Balanced Scorecard, also known as the Integrated Management Dashboard, is a powerful management tool that helps companies measure and verify their strategic results.

Developed by Professors Kaplan and Norton, the Balanced Scorecard addresses the limitations of financial indicators in measuring strategy.

Kaplan and Norton conducted extensive research with many companies in the 1990s to understand the need for a more comprehensive approach to strategy measurement.

The Balanced Scorecard translates a company's strategy into interconnected objectives that are measurable and linked to business actions.

It aims to align the entire organization and all employees with the company's strategy, ensuring everyone speaks the same language in strategy development.

The Scorecard includes four perspectives: financial, customer, internal processes, and learning and growth.

The financial perspective focuses on maximizing profits through financial indicators like revenue growth and productivity.

The customer perspective emphasizes delivering added value to customers to increase their purchases and loyalty.

Common indicators for the customer perspective include customer satisfaction, retention, acquisition of new customers, and customer profitability.

The internal processes perspective outlines how to deliver the value proposition to customers by optimizing products or services.

Internal processes are divided into operational management, customer management, innovation, and regulatory and social processes.

The learning and growth perspective describes a company's intangible assets and their role in strategy development.

Kaplan and Norton propose three categories of intangible assets: human capital, information capital, and organizational capital.

Human capital focuses on the availability of skills, competencies, and knowledge required to support the strategy.

Information capital deals with the availability of information systems, networks, and infrastructure needed to back the strategy.

Organizational capital relates to the company's ability to mobilize and sustain the change process necessary to execute the strategy.

The objectives of the four perspectives are interlinked through cause-and-effect relationships, starting from financial outcomes down to customer and internal process objectives.

Aligning the objectives of these perspectives is key to creating value and a focused, internally consistent strategy.

The Balanced Scorecard provides a framework for developing strategy, setting important present objectives, and involving the entire company.