Putting the Balanced Scorecard to Work

Robert S. Kaplan and David P. Norton, Harvard Business Review,1993

學生：黃柏翔
指導老師：任維廉教授
1
 Outline
 自我介紹

 Summary

 Example

 Rockwater

 Apple Computer

 Advanced Micro Devices

 FMC Corporation

 Conclusion

2
 自我介紹
姓名 黃柏翔

生日 2/27 年齡 24

興趣 慢跑

經驗 全職超商

專長 雜務

3
 Executive Summary
 The balanced scorecard

 Proposed in January-February 1992 issue of HBR (“The Balanced

Scorecard—Measures that Drive Performance”)

 New measurement system

 Comprehensive framework

 Motivate breakthrough improvement

 Product, process, customer, market development

4
 Goal
 Perspective

 Financial

 Customer

 Internal process

 Innovation and improvement activities

 New measure

 Management system

5
 Example
 Rockwater

 Apple Computer

 Advanced Micro Devices

 FMC Corporation

6
 Rockwater:
Responding to a Changing Industry
 Rockwater’s strategic objectives had to be translated into tangible

goals and actions.

7
 Rockwater:
Balanced Scorecard

8
 Building a Balanced Scorecard(1/3)
 Preparation

 Interviews: First Round

 Executive Workshop: First Round

 Interviews: Second Round

 Executive Workshop: Second Round

 Executive Workshop: Third Round

 Implementation

 Periodic Reviews

9
 Building a Balanced Scorecard(2/3)
Preparation
• Define business units

1st Interview
• Executives, principal shareholders, customer
• Strategic objectives, balanced scorecard

1st Executive Workshop

• Top management team
• Consensus in mission and strategy

2nd Interview
• Senior executive
10 • Tentative balanced scorecard
 Building a Balanced Scorecard(3/3)
2nd Executive Workshop
• Senior management team, subordinates, middle managers
• Organization’s vision, strategy, scorecard

3rd Executive Workshop

• Senior executive team
• Communicating, integrating, information system

Implementation
• All team
• New executive information system

Periodic Reviews
• Strategic planning, goal, resource allocation
11
 Apple Computer:
Adjusting Long-Term Performance
 Performance Indicator:

 Customer Satisfaction

 Core Competencies

 Employee Commitment and Alignment

 Market Share

 Shareholder Value

12
 Advanced Micro Devices :
Consolidating Strategic Information
 Sections:

 Financial measure

 Customer-based measure

 Critical business processes

 New product development

 Process technology development

 Corporate quality

 Organizational learning

13
 Interview with Larry D. Brady(FMC)
 What’s the status of the balanced scorecard at FMC?

 The cornerstone, it enables us to translate business unit strategies into a

measurement system that meshes with our entire system of management.

 What led you and them to the balanced scorecard?

 We had initiated many of the popular improvement programs: total quality,

managing by objectives, organizational effectiveness, building a high-

performance organization.

14
  What kinds of measures were you using?

 Make in implementing long-term initiatives.

 How did the balanced scorecard emerge?

 Customer service, market position, and new products.

 How did you launch the scorecard effort at FMC?

 Division managers to develop prototype scorecards for their operations.

 Output measures not process-oriented measures.

15
  What obstacles did the division managers encounter?

 Customer and innovation perspectives.

 The measures tended to be nonquantifiable and input- rather than output-

oriented.

 How often do you envision reviewing a division’s balanced scorecard?

 Group managers: monthly

 Senior corporate team: quarterly

16
 Thoughts on the Scorecard
 The scorecard is trend.

 The diversity of initiatives, each with its own slogan, created

confusion and mixed signals.

 The scorecard as a strategic measurement system, not a measure

of our strategy.

17
 The Scorecard’s Impact on External
Reporting
 Whether or not the balanced scorecard is applicable to external

reporting.

 Reveal information to competitors.

 Financial community shows little interest in making change.

18
 Conclusion
 The balanced scorecard is successful.
 Rockwater

 Joseph De Feo, chief executive of Service Businesses

 Analog Devices, a semiconductor company

 The scorecard enables managers to see the breadth and

totality of company operations.

 Strategic objectives

19
20