SBA Strategic Business Analysis
Topic
Team
BALANCED
BALANCED
SCORECARD
History &
Evolution
Components
SC RECARD
Purposes
Advantages
Disadvantages
Implementation
...
SBA Strategic Business Analysis
Topic
Team
BALANCED
SCORECARD
GROUP 1
History &
Evolution
Components
Purposes
Advantages Agascon Ferrer Piano
Group Leader Reporter Reporter
Disadvantages
Capule Magpantay Villafuerte
Reporter Reporter Reporter
Implementation
...
SBA Strategic Business Analysis
Topic
Team
BALANCED SCORECARD
BALANCED
SCORECARD
History &
Evolution
Components
Balanced scorecard or BSC
Purposes
is a strategic management
Advantages tool that measures the
Disadvantages
organization's performance.
Implementation
...
SBA Strategic Business Analysis
Topic
Team HISTORY AND EVOLUTION
BALANCED
SCORECARD
History & The Balance Scorecard -
Evolution
Measures that Drive Performance
Arthur M. Schneiderman
by Robert Kaplan and
Components Analog Devices- First generation
Balance Scorecard Design David Norton
Purposes 1987 1992
Advantages
1990 1996
First documented study of the The Balance Scorecard -
Disadvantages Balanced Scorecard Translating Strategy in
Action - First Book
Implementation
...
SBA Strategic Business Analysis
Topic
Team COMPONENTS
BALANCED
SCORECARD
History & FINANCIAL CUSTOMER
Evolution PERSPECTIVE PERSPECTIVE
To succeed financially, To achieve our vision, how
how should we appear should we appear to our
Components to our shareholders? customers?
Objectives Measures Targets Initiatives Objectives Measures Targets Initiatives
Purposes
INTERNAL LEARNING &
Advantages PROCESSES GROWTH
PERSPECTIVE PERSPECTIVE
To satisfy our shareholders To achieve our vision,
Disadvantages and customers, what how will we sustain our
business processes must we ability to change and
excel at? improve?
Objectives Measures Targets Initiatives
Implementation Objectives Measures Targets Initiatives
...
SBA Strategic Business Analysis
Topic
The Four Perspectives Apply to Mission Driven As Well As
Team Profit Driven Organizations
BALANCED
SCORECARD
Mission Driven
History &
Evolution Profit Driven
FINANCIAL
Components What must we do to satisfy our PERSPECTIVE What must we do to satisfy our financial
shareholders? contributors?
What are our fiscal obligations?
Purposes CUSTOMER
What do our customers expect PERSPECTIVE Who is our customer?
from us? What do our customers expect from us?
Advantages
What internal processes must we INTERNAL What internal processes must we excel at to
excel at to satisfy our shareholder
PROCESSES
Disadvantages
PERSPECTIVE satisfy our fiscal obligations, our customers
and customer?
and the requirements of our mission?
How must our people learn and How must our people learn and develop skills
LEARNING &
Implementation develop skills to respond to these GROWTH to respond to these and future challenges?
and future challenges?
PERSPECTIVE
...
SBA Strategic Business Analysis
Topic
Team PURPOSES
BALANCED
SCORECARD
History &
Leads ethical
Evolution decision-making
Components
To evaluate To identify and
Purposes
employees and align strategic
managers initiatives
Advantages
Disadvantages
To focus on the drivers
key to future
Implementation performance
...
SBA Strategic Business Analysis
Topic
Team ADVANTAGES
BALANCED
SCORECARD
History & Brings structure to business
Evolution
strategy
Components
Purposes
Makes communication easier
Advantages
Disadvantages Connects the individual worker to
organizational goals
Implementation
...
SBA Strategic Business Analysis
Topic
Team DISADVANTAGES
BALANCED
SCORECARD
History &
Evolution
It must be tailored to the
organization
Components
Purposes
It needs buy-in from leadership to
be successful
Advantages
Disadvantages
It requires a lot of data
Implementation
...
SBA Strategic Business Analysis
Topic
Team IMPLEMENTATION
BALANCED
SCORECARD
History & Steps to build a Balanced Scorecard:
Evolution
1
Components
Clarify the mission or strategic vision.
Purposes
Advantages
2 Specify objectives in the four perspective areas.
Disadvantages
3 Define performance measurement to measure the
objectives or goals.
Implementation
4 Decides specific targets and initiatives.
...
SBA Strategic Business Analysis
Topic
Team IMPLEMENTATION
BALANCED
SCORECARD
History &
Financial perspective
Evolution
measures are usually
traditional measures,
Components
based on financial
statement information
Purposes such as EPS or ROI.
Customer perspective
Advantages measures are those
that evaluate how the
customer perceives the
Disadvantages
business and how the
business interacts with
Implementation customers.
...
SBA Strategic Business Analysis
Topic
Team IMPLEMENTATION
BALANCED
SCORECARD
Internal business
History &
Evolution perspective measures
are those that evaluate
management’s
Components
operational goals, such
as quality control or on-
Purposes time production.
Learning and growth
Advantages perspective measures
are those that evaluate
how effectively the
Disadvantages
company is growing by
innovating and creating
Implementation value.
...
SBA Strategic Business Analysis
Topic
Team IMPLEMENTATION
BALANCED
SCORECARD
History &
Evolution
Key Takeaway:
Components
The Balanced Scorecard reflects the balance
Purposes
between: short term and long-term objectives
Advantages financial and non-financial measures
external and internal performance perspectives
Disadvantages
Implementation
...
SBA Strategic Business Analysis
Topic
Team
BALANCED
SCORECARD
History &
Evolution
Thank You!
Components
Purposes
Advantages
Disadvantages
Implementation
...
