The origins of balanced scorecard can be traced back to 1990 when the Nolan Norton Institute (the research arm of KPMG), sponsored a one-year multi-company study, “Measuring Performance in the Organisation of the Future."
Where it all Started
The study was led by David Nolan and Robert Kaplan and was motivated by the belief that that existing performance measurement approaches, which primarily relied on financial accounting measures were becoming obsolete
A number of companies from a wide range of industry sectors including manufacturing, service and high tech were involved in the study
One of the participants developed an approach to measuring rates of progress for continuous improvement activities and developed a "Corporate" Scorecard which incorporated a number of traditional measures but importantly added measures relating to customer delivery times, quality and cycle times of manufacturing processes, and effectiveness of new product developments
This developed in to a "Multi-dimensional" scorecard which expanded to become the "Balanced Scorecard" focusing on 4 key business perspectives
Learning & Growth
This aims to achieve a balance across the following areas:
Short and long-term objectives
Lagging and leading indicators
Financial and non-financial measures
External and internal performance indicators
The "Balanced Scorecard" helps integrate all aspects of a business and breaks down strategic measures to local levels so that unit managers, operators, and employees can see what’s required at their level to roll into excellent performance overall
What is the Problem?
There are a number of challenges that prevent organisations from delivering their strategy.
These challenges mean that the ‘important things’ get sacrificed for the ‘here and now’
What is the Problem?
You Can’t Manage Strategy with a "System" Designed for Tactics
The Vision Challenge
5% of the staff understands the strategy
The Management Challenge
85% of senior teams spend less than an hour per month discussing strategy
The Resource Challenge
60% of companies don’t link budgets to strategy
The People Challenge
Only 25% of managers have incentives linked to business strategy
9 of 10 Companies Fail to
Translating Vision and Strategy
Strategy Maps Description
Strategy Maps are completed to understand the cause and affect relationships among the objectives
Strategy Maps are an underlying framework of horizontal perspectives arranged in a cause and effect relationship
Each objective as text appearing within a shape (usually an oval or rectangle)
There are usually relatively few objectives (usually fewer than 20)
The vertical sets of linked objectives span the different perspectives, which are called strategic themes
This shows the clear cause-and-effect relationships between these objectives, across the different perspectives
These strategic themes represent ideas about how the strategy will bring about change to the outcomes of the organisation
What is a balanced scorecard?
What is Balanced Scorecard?
A Measurement System is a collection of units of measurement and rules relating them to each other.
A Measurement System
A Management System is the framework of policies, processes and procedures used by an organisation to ensure that it can fulfill all the tasks required to achieve its objectives
A Management System
A Management Philosophy is a set of beliefs or rules used by managers to help them make decisions, it includes reason as to why you would choose to use those rules
A Management Philosophy
A balanced scorecard (BSC) is a strategic planning and management system that organisations use to:
Communicate what they are trying to accomplish
Align the day-to-day work that everyone is doing with the strategy
Prioritise projects, products, and services
Monitor and measure progress to strategic targets
Translating Vision and Strategy
The balanced scorecard is a system which connects the dots between the big picture such as:
Vision - Aspirations
Mission - Purpose
Core Values - What we believe in
And the more operational elements such as:
Objectives - Continuous Improvement
Measures - KPI's
Projects / Initiatives - Projects achieve targets
Translate Vision and Strategy
The Balanced Scorecard is designed to view the organisation from four perspectives and to develop objectives, measures, targets, and initiatives relative to each of these points of view:
Financial: This perspective views organisational financial performance and the use of financial resources
Customer: This perspective views organisational performance from the point of view the customer or other key stakeholders that the organisation serves
Internal Business Process: Provides a view of organisational performance through quality and efficiency related to the product or services
Learning and Growth: Provides a view of organisational performance through people, infrastructure, technology, culture and other capacities that are key to performance
Benefits of a Balanced Scorecard
Benefits of Implementing a Balanced Scorecard
How Can Lion and Gazelle Help?
Drill down Your strategy into measurable objectives
Set up the right Scorecard for Your business
Set up the Governance process for Your business
Train Your Management team in the mechanics and the use of the scorecard
Set up the data flows in Your business to make sure the scorecard creation is a seamless process each month
Help Your organisation set up the right initiatives to meet the Strategic objectives
Integrate the Scorecard process into Business Planning and Performance Management
Focus on Lead vs. Lag indicators
Translate Strategy in to measurable and manageable objectives
Communication tool for the organisation
Ability to link initiatives to organisational objectives
Focus on today with clear alignment to ‘where we are going'
Lion & Gazelle have significant experience and a proven track record of delivering projects and programmes for many clients covering a number of industry sectors including Aviation, Manufacturing, Financial Services, Media, Telco’s and many others through out the UK
Lion & Gazelle - Background
WHO WE ARE.
Formed in 2009 Lion & Gazelle has extensive expertise and experience in delivering
Business Transformation including:
Business Process Improvement
Project and Programme Delivery
Lion & Gazelle have delivered projects for a number of organisations throughout the UK. Below is a small sample of our key customers
Some of our customers
Visit our website to see the full scope of services we offer:
"Every organisation does Strategy, Objectives, Target Setting, Planning, Metrics and Competitive Benchmarking; unfortunately these processes are more often not executed in sync leading to mis-alignment with each other and Executive Boards keep trying to fix the issues all the time. The Balanced Scorecard process provides a one-stop-solution to achieve these multiple dimensions as one integrated whole"