Communicate and link strategic objectives and measures.
New approach to strategic management, generating growth opportunities.
It is not merely depends on the financial accounting measures but it has ability to create
future economic value.
It is not traditional short-term focus on cost cutting, low price, improve quality, and shorten response time. It Brings value added products and services to customers.
Recognizing and addressing weaknesses of previous management.
If you can not measure, you can not manage.
Teams work cross functionally eliminating functional silos.
It measures organizational performance for 4 balanced perspectives.
BSC tracks financial results and acquire tangible assets for future growth.
Increases cash flow, rapid sales growth.
Customer:- Customer satisfaction, Customer relations, new customer acquisition, customer profitability,
market and account share in targeted segment. Help customer to save their cost.Increase Mkt
share. ABC allows to measure individual and customer profitability. Focus on targeted area-leads to
product/Customer pruning. (Imortant factors - Time, Quality, Price)
Internal Business processes: - This has greater impact on financial impact and customer objectives.
Traditional approaches attempt to monitor and improve existing processes. The scorecard will
usually identify entirely new processes at which an organization must excel to meet customer and
financial objectives. Create new service that customer value. Organization can adopt improvemnt
initiatives,such as TQM, JIT, KAIZEN, LEAN MANUFACTURING, REENGINEERING, ABC,
EMPLOYEE EMPOWERMENT and REENGINEERING.
Learning and growth :- It is more than training. It includes mentor and tutor within organization. It includes
technology for "high performance work system".To meet businesses long term goal it is important
to invest in reskilling employees, enhancing IT system, and aligning organizational procedures and
routines.This prevents from brain drain.
External measures :Customer & Shareholders Internal Process:- Innovation & learning growth
Past effect,lagging indicators Future performance, leading indicators
Short term objectives Long term objectives.
Retain customers, by creating relationship and adding value added services and innovative products
High quality at low cost.
Share employees expertise and resources. Motivate employees for continuous improvement.