Lecture 1 Introduction to the Balanced Scorecard as a Strategic Tool
Balance Scorecard (BSC)
What is a Balance Scorecard?
- Developed by (Robert) Kaplan & David Norton:
Are the originators of the balanced score card: a strategic management
tool that links a company’s current actions with its long-term goals.
- Popular business tool which aligns different dimensions of business
strategy.
- Creates a strong link between financial goals and other parts of the
company strategy.
- Developed to include ‘metrics’ to check that company objectives are
being met.
What is the goal of the BSC?
To measure and provide feedback to organizations.
One example of a BSC
,Example Fast Food Restaurant
Another view: The Strategy Map
,Value Strategies According to Treacy and Wiersema
From the Case (Hotel case on the portal)
Current Mission & Vision
In their company literature and on their website, the organization states that
their core values are to:
- Provide excellent levels of customer service to all guests
- Provide a clean and comfortable environment for guests and staff
- Recruit and retain excellent staff
- Support and develop staff so they can reach their full potential
- Continuously strive to improve all aspects of the business
- Ensure that all hotel buildings, fixtures and fittings are well-maintained in
a proactive manner
, Strategy Map for Fast Food Chain
A third view: Performance Management
*CSF = Critical Success Factor
CSF*: Dominant share in the global market
Objective: Increase market share
Measure: Number of potential customers reached
Target: 10% increase in 3 years
Initiatives: Expand our activities in North America
Develop a program for goal-oriented marketing
Communicate with customers through e-business tools
Balance Scorecard (BSC)
What is a Balance Scorecard?
- Developed by (Robert) Kaplan & David Norton:
Are the originators of the balanced score card: a strategic management
tool that links a company’s current actions with its long-term goals.
- Popular business tool which aligns different dimensions of business
strategy.
- Creates a strong link between financial goals and other parts of the
company strategy.
- Developed to include ‘metrics’ to check that company objectives are
being met.
What is the goal of the BSC?
To measure and provide feedback to organizations.
One example of a BSC
,Example Fast Food Restaurant
Another view: The Strategy Map
,Value Strategies According to Treacy and Wiersema
From the Case (Hotel case on the portal)
Current Mission & Vision
In their company literature and on their website, the organization states that
their core values are to:
- Provide excellent levels of customer service to all guests
- Provide a clean and comfortable environment for guests and staff
- Recruit and retain excellent staff
- Support and develop staff so they can reach their full potential
- Continuously strive to improve all aspects of the business
- Ensure that all hotel buildings, fixtures and fittings are well-maintained in
a proactive manner
, Strategy Map for Fast Food Chain
A third view: Performance Management
*CSF = Critical Success Factor
CSF*: Dominant share in the global market
Objective: Increase market share
Measure: Number of potential customers reached
Target: 10% increase in 3 years
Initiatives: Expand our activities in North America
Develop a program for goal-oriented marketing
Communicate with customers through e-business tools
