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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
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