Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

Using the Balanced Scorecard as a Strategic Management System

No description
by

Andrea Ng

on 23 July 2013

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Using the Balanced Scorecard as a Strategic Management System

Using the Balanced Scorecard as a Strategic Management System
vision and strategy statements are expressed as an integrated set of objectives and measures agreed by all senior executives to drive long term success
The 4 Perspectives of Translating Vision and Strategy
1) Financial
2) Internal Business Process
3) Learning and Growth
4) Customer
bridge the gap between mission statements and employee's knowledge of how daily actions can contribute to fulfilling the company's vision
Translating the Vision
Communication & Linking
Business PLanning
three
two
one
four
Translating the
Vision
Communication &
Linking
Business Planning
Feedback & Learning
Balanced
Scorecard
Traditional Management Systems
Are unable to

bind a company's short -term activities to its long-term goals
Short-term financial measures as the sole indicators of company’s performance
Vision statements without consensus or a road map to achievement
Business and financial plans not integrated
Inadequate communication and feedback processes
Feedback & Learning
Most organizations work in silos
- separate procedures and organizational units for:
1. Strategic Planning
2. Resource Allocation
3. Budgeting



1. Integrate these aspects to ensure that
budgeting meets the strategic goals.
2. Identify the key drivers of revenue and commit targets to each of them
3. Creates a framework for change
4. Concentrate on improving these processes
5. Establishes short-term goals or milestones
Why a plan?
Relies on 4 processes to link short-term activities to long-term objectives
Pharmacy Example
"To be the "gold standard" in providing quality medication review"
"Double profits within 2 years"
Goal
Financial
The Balanced Scorecard
Uses a
holistic
approach to enhance traditional financial measures with benchmark performance in other areas
BALANCED
SCORE-CARD
how to communicate vision to all of the pharmacists, managers, accountants (broad participation)
communicating and educating - communicate long-term strategies using financial and non-financial measures
setting goals - translate objectives into meaningful tasks and targets for themselves
linking rewards to performance measures
The balanced scorecard allows for continuous testing of a company’s strategy. It offers information on why the strategy is or isn’t effective and points out areas that can be improved.
A balanced scorecard supplies 3 elements that are essential to strategic learning:
1)It articulates the company’s shared vision in clear, operational
terms

2)It supplies a strategic feedback system that allows for a change
in the hypothesis behind the business strategy.

3)It facilitates the strategy review that is essential to strategic learning
Pharmacy Case Example
MedsCheck Co. is a new business that started 6 months ago that focuses on providing MedsCheck assessments for the geriatric population in LTC and homes. MedsCheck Co. has been having consistently below average performance in the number of target MedsCheck each month. Competitors are doing 100 MedsCheck/month but MedsCheck Co. is performing 30 MedsCheck/month. The average time spent on a MedsCheck was 15 minutes at MedsCheck Co.
How can MedsCheck Co. use the Balance Scorecard to re-analyze their company strategy?
Why do budgets often bear little direct relation to a company's long-term strategic objectives?
Traditional Management Systems
Pros
The article was easy to read and provided detailed examples for the concepts illustrated it was easy to relate the concepts to pharmacy
There were many flowcharts and diagrams that reinforced the processes and measures of a Balanced Scorecard.
Cons
It is hard to imagine how companies were operating without a scorecard
There was a lot of unnecessary repetition of concepts
Critique: Pros & Cons
MedsCheck Co. Scorecard
Group 22: Carmen Loucks, Nick Malian, Andrea Ng, Grace Niyakire, Andra Oancea
June 29, 2012
Personal Scorecard Template
MedsCheck Co. is a new business that started 6 months ago that focuses on providing MedsCheck assessments for the geriatric population in LTC and homes. MedsCheck Co. has been having consistently below average performance in the number of target MedsCheck each month. Competitors are doing 100 MedsCheck/month but MedsCheck Co. is performing 30 MedsCheck/month. The average time spent on a MedsCheck was 15 minutes at MedsCheck Co.
Pharmacy Case Example
Conclusion
Balanced Scorecards is a useful strategic management system used to:

1) clarify & update strategy
2) Communicate strategy throughout the company
3) Align unit & individual goals with the strategy
4) Link strategic objectives to long-term targets and annual budgets
5) Conduct periodic performance reviews to learn about and improve strategy
Full transcript