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Strategic Planning & Managment
The balanced scorecard is a performance measurement framework that was developed to help organizations implement their strategies by translating strategic objectives into tangible goals and measures across four perspectives: financial, customer, internal processes, and learning and growth. It provides managers with a comprehensive view of business performance that more closely aligns operational activities to the vision and strategy of the organization. The balanced scorecard approach links long-term strategic objectives to short-term actions, allowing organizations to track progress and make necessary adjustments to ensure the achievement of goals.
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Strategic Planning & Managment
- 2. A balanced scorecardis a performance metric used to identify, improve, and control a business's various functions and resulting outcomes. The concept of BSCs was first introduced in 1992 by David Norton and Robert Kaplan, who took previous metric performance measures and adapted them to include nonfinancial information. BSCs were originally developed for for-profit companies but were later adapted for use by nonprofits and government agencies. The balanced scorecard involves measuring four main aspects of a business: Learning and growth, business processes, customers, and finance. BSCs allow companies to pool information in a single report, to provide information into service and quality in addition to financial performance, and to help improve efficiencies.
- 3. The balanced scorecard(BSC) quickly rose to popularity among organizations large and small. The revolutionary management tool shifted the traditional focus on revenue and financial health to a more holistic and comprehensive understanding of a business’s performance. The balanced scorecard is a management system originally developed to help organizations achieve their business objectives and execute key strategies.
- 4. Most commonly usedframework in the world Today, 70% of businesses use BSC at least partially to manage their strategic goals.
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- 6. How to developscore cards? • Develop your vision. • Determine your strategic objectives. • Analyze what factors will bring success. • Choose you KPIs. • Set your measures, target and initiatives.
- 7. The name “balancedscorecard” comes from the idea of looking at strategic measures in addition to traditional financial measures to get a more “balanced” view of performance. The concept of balanced scorecard has evolved beyond the simple use of perspectives and it is now a holistic system for managing strategy. A key benefit of using a disciplined framework is that it gives organizations a way to “connect the dots” between the various components of strategic planning and management, meaning that there will be a visible connection between the projects and programs that people are working on, the measurements being used to track success (KPIs), the strategic objectives the organization is trying to accomplish, and the mission, vision, and strategy of the organization
- 8. Financial Customers Internal Processes Learning andGrowth Increase Net Surplus Reduce Operating Expenses Improved Performance STEPS ROI
- 9. Financial Customers Internal Processes Learning andGrowth Social Media Posts Satisfaction Surveys Happy Member- owners Needs of members must be assessed and responded Social Responsibilities
- 10. Financial Customers Internal Processes Learning andGrowth Increased institutional capital Protection of their risk assets Compliance Revised SCA and PFRF Review /Revised of policies found not effective
- 11. Financial Customers Internal Processes Learning andGrowth Professionalization of officers and staff Enterprise Development for Members Succession Planning Staff Retention
- 12. Social Responsibility- Mission5 Measures Targets Initiatives State whether (Old PPAs or New PPAs) 1. 2. 3. 4. Business Objectives
- 13. Goals and Objectives 2019-2023 Goalsand Objectives 2024-2029 Perspective Goals Measures Targets Customers’/ Members Satisfaction 1.Customer Satisfaction 2. Customers Retained 3.Customer Subscription 1.% satisfaction index 2. % Retention 3. Amount CBU & Savings 1. 2. 3. Workshop 4 10 Minutes brainstorming 10 Minutes Reporting
- 14. Goals and Objectives 2019-2023 Goalsand Objectives 2024-2029 Perspective Goals Measures Targets Financial 1. Growth in revenue 2. NS margin 3. Operational Cash Flow 4. Current account receivable 1.% growth 2. % NS margin 3. % Increase 4. Amount Receivable 1. 2. 3. Workshop 5 10 Minutes brainstorming 10 Minutes Reporting
- 15. Goals and Objectives 2019-2023 Goalsand Objectives 2024-2029 Perspective Goals Measures Targets Internal Business Process 1. Financial control 2. Control in accounting and reliability of financial reports 3. Policy formulation & review 4. Updated Manual of operation 1. Policy & Procedure 1. 2. 3. Workshop 6 10 Minutes brainstorming 10 Minutes Reporting
- 16. Goals and Objectives 2019-2023 Goalsand Objectives 2024-2029 Perspective Goals Measures Targets Learning and growth 1. Compliant to CDA Memo 2015-09 2. Professional training for staff 3. Officership, Livelihood & entrepreneurship for members 1.% compliance 2. % staff with professional trainings and exposure 3. Members trained 1. 2. 3. Workshop 7 10 Minutes brainstorming 10 Minutes Reporting
- 17. Your Strategy Maptells a story. Strategy Map A strategy map is a diagram that shows your organization's strategy on a single page. It’s great for quickly communicating big-picture objectives to everyone in the company. With a well-designed strategy map, every employee can know your overall strategy and where they fit in. It helps keep everyone on the same page, and it allows people to see how their jobs affect the company’s strategic objectives.
- 18. your strategy mapwill also show how your organization will be performing at a glance. Each bubble is automatically colored red, yellow, or green based on your actual measures and the goals you set for them
- 20. Many strategy mapsalso have arrows between the objectives to show their cause and effect chain. By following the arrows’ paths, you can see how the objectives in the lower perspectives drive the success of the higher ones. These causal relationships are central to the idea of the balanced scorecard. If you train your employees and build a culture of information sharing (Learning and Growth), they’ll make your company run more smoothly (Internal Business Processes). Adding Arrows Exceeded target Real Problem Just Missed
- 21. The main ideaof a strategy map is that each strategic objective is represented by a shape, usually oval. Very rarely are there more than 20 objectives. Tracking too many will dilute your overall message, making your strategy difficult to communicate.
- 22. A better runningbusiness takes better care of its customers (Customer), and happy customers buy more of what you’re selling (Financial). Strategy maps show how intangible assets, like company culture and employee knowledge, are turned into concrete tangible results.
- 23. The vast majorityof the things that executives can change in an organization don’t contribute directly to the bottom line. Its important to have happy employees and updated infrastructure, but it’s hard to see how those objectives feed into the company’s end goals. The strategy map shows these relationships and encourages strategic thinking that goes far beyond your balance sheet.
- 24. Strategy is aboutchoices
- 25. Integration of Outputs Vision Mission Financial Values Customer Internal Control Learning &Growth Business Objectives & Strategy Map Measures Targets
- 26. Human Resource • Needto align team to execute the plan • Who are the key people in the organization responsible in the function areas? • What are the gaps as far as key functions? • Are there people responsible for more than one area?
- 27. Get people onthe same page Ensure that people and stakeholders are working towards common goals
- 28. How do youget alignment? • Communicate simply and clearly. Communicate simply and clearly. • Get buy-in • Match goals and motivation • Capability to execute
- 29. • Accommodate divergentinterests and values • Foster wise and reasonably analytical decision making • Promote successful implementation and accountability • Create a winning coalition
- 30. We can beginby seriously thinking words of some people. Essentially, together we can make a difference Happiness shares is happiness multiplied Grief shared is grief halved.