Balanced Scorecard For Beginner | Presentation by Kiky

Summary

This transcript covers a comprehensive presentation on performance management, focusing on the importance of using tools like the Balanced Scorecard (BSC) to measure organizational success. The speaker explains how BSC balances financial and non-financial performance, including customer satisfaction, internal business processes, and employee learning and growth. The presentation delves into strategic planning, implementation, monitoring, and evaluation, emphasizing the need for a cohesive approach to achieve long-term organizational goals. It also discusses the historical development of the BSC and provides practical examples from business and government sectors.

Takeaways

• 📊 The class covers the importance of performance management in organizations and how to use tools like the Balanced Scorecard (BSC) to measure performance.
• 🏢 Every organization, whether a business or government institution, has a mission and vision, which needs to be achieved collectively by employees.
• 📈 The Balanced Scorecard is a strategic management tool that balances financial and non-financial performance metrics, differing from traditional financial-focused measurement systems.
• 💡 It was first introduced by Robert Kaplan and David Norton in the early 1990s and has since evolved into a widely adopted management system.
• 📊 The BSC uses four key perspectives to evaluate organizational performance: financial, customer, internal business processes, and learning & growth.
• 💵 The financial perspective focuses on profitability and efficiency, especially in public sector organizations that emphasize the 3Es: effectiveness, efficiency, and economy.
• 👥 The customer perspective assesses customer satisfaction and retention, recognizing that meeting customer needs drives organizational success.
• 🏭 The internal business process perspective examines how well internal operations function, emphasizing innovation, process improvements, and operational efficiency.
• 📚 The learning and growth perspective focuses on employee development, technology, and infrastructure, ensuring continuous growth and improvement in the workforce.
• 📝 Organizations use the BSC to set strategic goals, monitor progress, and evaluate performance through measurable indicators, ensuring alignment with the organization's vision and objectives.

Q & A

What is the main topic of the script?

The main topic of the script is the Balanced Scorecard (BSC) system and its application in organizations for performance measurement, including financial and non-financial metrics.

Who developed the Balanced Scorecard and when?

The Balanced Scorecard was developed by Robert S. Kaplan and David P. Norton, with the concept being introduced in the early 1990s, particularly around 1993.

What is the Balanced Scorecard used for?

The Balanced Scorecard is used as a strategic management tool to translate an organization's vision and strategy into measurable actions, balancing financial and non-financial performance indicators.

What are the four main perspectives of the Balanced Scorecard?

The four main perspectives of the Balanced Scorecard are: Financial, Customer, Internal Business Processes, and Learning and Growth.

Why is the Balanced Scorecard considered more effective than traditional financial measurement systems?

The Balanced Scorecard is more effective because it incorporates both financial and non-financial performance indicators, providing a more holistic view of organizational performance, including internal operations and growth opportunities.

How does the Balanced Scorecard help organizations maintain long-term sustainability?

The Balanced Scorecard helps organizations by aligning their strategic objectives with day-to-day operations, ensuring that both short-term and long-term goals are balanced, leading to sustainable success.

What role does the financial perspective play in the Balanced Scorecard?

The financial perspective focuses on profitability, cost management, and achieving financial targets, which are key indicators of business success, especially for shareholders and stakeholders.

How does the customer perspective contribute to performance evaluation in the Balanced Scorecard?

The customer perspective evaluates the organization's ability to meet customer needs, focusing on customer satisfaction, retention, and market share, which are essential for business growth and success.

What is the importance of the internal business process perspective in the Balanced Scorecard?

The internal business process perspective assesses the efficiency and effectiveness of the organization's operations, including innovation and service delivery, which directly impact overall performance and customer satisfaction.

What factors are considered in the learning and growth perspective?

The learning and growth perspective focuses on employee development, technological capabilities, and organizational culture, emphasizing continuous improvement and capacity building to ensure long-term organizational growth.

How can organizations measure success using the Balanced Scorecard?

Organizations measure success by setting strategic objectives across the four perspectives (Financial, Customer, Internal Business Processes, and Learning and Growth) and tracking key performance indicators (KPIs) to ensure these objectives are met.