27. The following exhibit illustrates how shareholder value flows up across the four perspectives of the Balanced Scorecard: Support Systems & Personnel Learning Customer Marketing & Service Programs Processes More Customers Customer Revenue Growth Financial Shareholder Value
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38. Exhibit 5: Flowing strategic objectives within the Financial Perspective High Utilization of Assets Lower Costs Increase Customer Profitability New Sources of Revenues Operating Improvements Grow Revenues Shareholder Value
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42. Exhibit 6: Linking customer objectives to financial objectives Leader in Pricing Acquire More Customers Customer Grow Revenues Shareholder Value Financial
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46. Exhibit 7: Linking objectives down to Internal Processes Reduce Non Core Activities Knowledge Based System Cost Reduction Program Improve Operational Efficiency Internal Processes Become the Price Leader Acquire More Customers Customer Grow Revenues Shareholder Value Financial
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48. If we go back to our strategic grid ( Exhibit 7 ), we must decide on what strategic objectives are required for meeting the three objectives defined in the Internal Processes Perspective. Therefore, we can extend our grid as follows: Re-align organization with core competencies Database network on operational performance Training - Best practices in cost management Learning and Growth Reduce Non Core Activities Knowledge Based System Cost Reduction Program Improve Operational Efficiency Internal Processes Become the Price Leader Acquire More Customers Customer Grow Revenues Shareholder Value Financial
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51. Exhibit 9: Summarize Phase I Link strategic objectives into grids across four perspectives 5 th Limit the strategic areas to no more than five 4 th Align the organization around the strategy 3 rd Communicate the strategy 2 nd Establish a clear strategy (objectives & targets) 1 st Five Major Milestones – Phase I
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55. Exhibit 10: Measurement Template ___ IT Support ___ Finance Support ___ Other Support Required => ___ Available ___ Not Available ___ Requires Change Availability => Sources => Assumptions => Frequency of Measurement => Unit of Measurement => Define Type / Formula => Describe the Measurement => Strategic Objective =>
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60. Exhibit 11: Cause Effect Relationship between Leading and Lagging Indicators Reputation Image Price Time Quality Leading Indicators – Value Attributes to Customers : Customer Satisfaction Customer Retention Market Share Lagging Indicators are desired results: Customer Perspective
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70. Exhibit 12: Setting targets based on strategic goals $ 224,000 $ 195,000 $ 172,000 $ 160,000 Year 2004 Target Year 2003 Target Year 2002 Target Goal: We will grow sales by 40% over the next 3 years Current Year Sales Revenues
89. Delivers critical data used within the Balanced Scorecard, such as measurements. Manages the overall project, builds the scorecard, coordinates the process with other levels within the organization. Sponsors the Balanced Scorecard, approves the final scorecard, and advocates the concept to other parts of the organization. Lower Levels Middle Management Executive Level Cross Functional Development of the Balanced Scorecard
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