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Vision

andStrategy

The Balanced Scorecard measures the balance of four

perspectives. . . a continuous, iterative organizational process.

Customer

To achieve our vision, how shouldwe appear to our customers?

Internal Business Process

To satisfy our customers, what business

processes must we excel at?

Financial

To succeed financially, how should

we appear to our stakeholders?

Innovation, Learning & Growth

To achieve our vision, how will we sustainour ability to change and improve?

Balancing Performance

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Short-Term to Long-Term View

Performance

ManagementPerformance

Measurement

PerformanceMonitoring

Financial orientation

Monthly reporting

Historical information Based in standards

Static viewing

Financial and non-financial

Measurement and feedback

Accountability

Departmental deployment

Aligned with strategy

Human factors

incorporated

Strategic feedback

possible

Forward-looking (Leading

indicators)

Enterprise deployment

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Short-term

Tactics &

Action

Long-term

Vision &

Strategy

Scorecard

Philosophy:

Linking Strategy to Action

A planning aid to assist companys in formulating

long-term competitive business strategies and

translating strategy intoshort-term tactics and

actions thereby aligning the organization

strategically.

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Strategic Linkage Model:

Healthcare Example

Financial

Perspective

Customer

Perspective

InternalPerspective

Innovation,

Learning & Growth Perspective

Top Three

Healthcare System

Number Lives Touched

Operating Margin

Employee

Satisfaction

Leverage IT

Across System

PatientRecommendations

Efficiency Ratio

Efficient ServiceDelivery

Effective OutcomesManagement

Lagging

Leading

Value

Service Utilization

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What Happened?

Establish framework which reflects your

strategic initiatives

Define performance targets

Normalize scores to scale

Assign relative importance

Define measurement periods

The Role of Technology

Measure (mezhur) - 1. A unit or standard ofmeasurement; 2. The extent, dimensions,quantity, etc. of something, ascertained

especially by comparison with a standard.

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Why Did It Happen?

Database Connectivity native connections to Oracle, Informix, Progress,

Sybase, Ingres, MS-SQL Server, DB2 UniversalDatabase, Hyperion Essbase

ODBC connections to virtually everything else

Powerful, Scalable, Flexible

robust product architecture information analysis, query & reporting

The Role of Technology

Analyze (anl iz) - 1. To examine critically, so asto bring out the essential elements or give theessence of; to examine carefully and in detail so as

to identify causes, key factors, possible results

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What If We Changed Something?

Detect Quantifiable Cause-and-Effect

Relationships

Perform What-If Analysis

Forecast Goal Attainment

The Role of Technology

Plan (plan) - 1. A scheme or method of acting,doing, proceeding, making, etc., developed inadvance; 2. A format program for specified

benefits, needs, etc.

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The Role of Technology

Effectively Communicate Initiatives

Establish collaborative communication

environment

Communicate vision and strategyGather feedback

Closed loop action plans

Manage (man ij) - 1. To bring about orsucceed in accomplishing; 2. To direct, govern,

or control in action or use.

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Sustainability Factors

The balanced scorecard is deceptively simple

Commitment of leadership

Employee involvement in their performance measures

Limit the number of measures to the vital few Accountability for the data

Individual scorecards

Strategic learning - using the scorecard for continuousimprovement

Tie into budgeting process

Linkages to compensation plans & rewards systems

design and implementation can be difficult, if these keyfactors are overlooked.

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Benefits of a Scorecard

Operationalizes strategy

Focuses entire organization on what needs to be

done to achieve breakthrough performance

Integrates corporate programs (e.G., Quality,

BPR, process redesign and customer service)

Corporate-level measures can be broken down to

lower levels in the organization so that

employees can see what they can do to improve

organizational effectiveness

Provides a comprehensive view of an

organization

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Continuously communicates strategy and performance results of

the organization

Provides organizational tool to manage performance vs.

measuring

Creates collaborative communication environment and automated

feedback loops Improves organizational speed and decision-making capabilities

Creates a management process that can be continuously

improved

Technology reduces the pitfalls of implementinga manual scorecard process...

Technology Benefits