Introduction to Balanced Scorecard and Measurement tools - YouTube

The method of measuring business performance used to depend solely on the financial performance

of an organization.

This method measures the performance in terms of profit and loss until in 1992, Dr. Robert

and David introduced the Balanced Scorecard methodology.

To set an accurate Balanced Scorecard first we have to identify a clear and simple Vision,

Mission, and Values.

Each of which plays an essential part in setting the framework to identify Goals, Objectives

and Strategies.

A strategy map is the company strategy stated in simple terms in an easy to understand form

based on the full balance scorecard perspectives.

A tactical action plan breaks down the objectives into initiatives and projects.

The balanced scorecard takes the corporate's big picture and breaks it down into projects,

which are then broken down into day-to-day tasks.

It lets you see how your everyday job duties will contribute to the organization's long-term

success..

A balanced scorecard shows the corporate holistically in four perspectives not as separate silos

of departments.

Financial Perspective: Financial perspective looks at top level financial objectives and

measures to answer the question how do we look to our shareholders?

Considering the following factors

Customer Perspective: focuses on customer satisfaction answering the question how do

our customers see us?

Considering the following factors

Internal Processes Perspective: is concerned with assessing the processes quality and processes

cycle time to identify how well the business is running.

Considering the following factors

Learning and Growth perspective: determines the neccessary skills and training modules

required for the successful implementation of company processes.

Considering the following factors

Performance management may be divided into the following measures:

( KRAs) (KPAs)

(KRIs) (PIs)

(KPIs)

Key result Area: refer to general areas of outcomes or outputs for which the department's

role is responsible.

as such it focuses on results rather than activities.

Key Performance Areas: When the key results area is large, it is broken into manageable

areas for managing/ evaluation.

these sub-sections of KRAs are called KPA

Key result indicators: are the broad results areas covering long time periods such as quarters

or year of the overall performance metric, KRI is the result of many actions.

Basically it is a tool to measure the progress of a specific perspective.

Performance indicators (PIs) are measuring tools used to define the success or failure

of a given process.

They are more focused and used to target smaller areas than that of the KRI's.

Key Performances indicators (KPIs): The scorecard part of the balanced scorecard which details

necessary actions required to increase performance dramatically ant its measured over very short

time periods: hours, days, weeks and months.

Major Types of KPIs: Lagging Indicators: measure the output of

past activities yet they are easier to identify Leading Indicators: measure activities that

have a significant effect on future performance.

They are harder to identify but are the only measures that make a difference.

10/80/10 Rule The 10/80/10 rule is a helpful guide, stating that there are about 10 KRIs,

up to 80 PIs, and 10 KPIs in any given organization.

here you can see an example of Strategy Mapping which maps out corporate objectives in a visualized

one page diagram of the four perspectives.

Here you can see an example of the scorecard part of the Balanced Scorecard which includes:

Perspectives, Objective, Measurements, Targets , Initiatives, Budget

Here you can see an example of the dashboard, which is the container for various types of

analytic reports and charts.

It might consist of one or more pages and provides different kinds of interactivity

which gives the top management a clear picture of current corporate performance.

Thank you for Listening.

HR Department - T&D Done by: Maher Akwan