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Balance Scorecard of Tcs

The document discusses the Balanced Scorecard framework for corporate performance management. It describes how a strategy map can be created with four perspectives: Learning & Growth, Internal Process, Customer, and Financial. Key performance indicators are identified for each perspective to measure how strategic objectives are linked to achieving the overall vision. The Balanced Scorecard provides a holistic view of organizational performance across both financial and non-financial factors.

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Krishna Chaitanya
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3K views

Balance Scorecard of Tcs

The document discusses the Balanced Scorecard framework for corporate performance management. It describes how a strategy map can be created with four perspectives: Learning & Growth, Internal Process, Customer, and Financial. Key performance indicators are identified for each perspective to measure how strategic objectives are linked to achieving the overall vision. The Balanced Scorecard provides a holistic view of organizational performance across both financial and non-financial factors.

Uploaded by

Krishna Chaitanya
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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BALANCE SCORECARD

CREATING STRATEGY MAP TO DRIVE


CORPORATE PERFORMANCE
CONTENTS
 Corporate Performance Management
 Strategy Map Framework
 Four Perspectives in Balanced Scorecard
 CONCLUSION
CORPORATE PERFORMANCE
MANAGEMENT
PERFORMANCE MANAGEMENT
FRAMEWORK
Vision Strategy Map
Mission
Strategy

BALANCE
SCORE CARD
Company
strategy
Identifying
Defining
Measuring
Monitoring
Reporting
PERFORMANCE MANAGEMENT
CYCLE
STRATEGY

Set Measures and Target

Reward and Coach Plan and Execute


Monitor and Evaluate

Monitor and Evaluate


MANAGING PERFORMANCE WITH BCS
 Balanced Scorecard is a management tool that
provides stakeholders with a comprehensive measure
of how the organization is progressing towards the
achievement of its strategic goals.
* Balances financial and non-financial measures
* Balances short and long-term measures
* Balances performance drivers (leading indicators)
with outcome measures (lagging indicators)
* Leads to strategic focus and organizational alignment.
4 PERSPECTIVES IN BALANCE
SCORECARD
Financial Perspective
The Strategy If we succeed, how will
we look to our
shareholders?

Customer Perspective
To achieve our vision,
how must we look to our
customers?

Internal Perspective
To satisfy our customers,
which processes must we
excel at?

Learning & Growth


Perspective

To achieve our vision, how


must our organization learn
and improve?
LEARNING AND GROWTH PERSPECTIVE
 This perspective reflects the capability that a company
should have, namely:
 Human Capital
 Organization Capital
 Information Capital
 This perspective shows us that good human resource
development system, organizational system and
information system forms a solid foundation for
improving company performance.
Strategic Objectives in Learning & Growth

Organization Information
Human Capital
Capital Capital

• Skills • Culture • Systems


• Knowledge • Leadership • Database
• Attitude • Organization • Networks
Development
INTERNAL PROCESS PERSPECTIVE
 This perspective reflects the processes in
key business that should be optimized in
order to meet the needs of the customers.
 There are four main themes in this
perspective, namely:
 Operations Management Process
 Customer Management Process
 Innovation Process
 Regulatory and Social Process
Strategic Objectives in Internal Process

Operations Customer Regulatory


Innovation
Management Management and Social
Processes
Processes Processes Processes

Processes that Processes that Processes that Processes that


produce and enhance customer create new improve
deliver products value products and communities and
and services services the environment

• Supply • Selection • New Ideas • Environment


• Production • Acquisition • R&D Portfolio • Safety &
• Distribution • Retention • Design/ Health
• Growth Develop • Employment
• Launch • Community
CUSTOMER PERSPECTIVE
 This perspective is very instrumental,
because without customers, how can a
company survive?
 Customer perspective covers the following
elements:
 Customer acquisition
 Customer retention
 Customer profitability
 Market share
 Customer satisfaction
Strategic Objectives in Customer

Customer Retention Customer Profitability

Customer Satisfaction Market Share

Customer Acquisition

Price Quality Service Availability Brand


FINANCIAL PERSPECTIVE
 In private companies, the financial perspective is the
main objective (ultimate goal) – without having to
sacrifice the interests of other relevant stakeholders
(community, environment, government, etc.)
 In the financial perspective, the strategic goal is the
long-term shareholder value.
value This goal is driven by
two factors, namely : revenue growth and cost
efficiency.
Strategic Objectives in FINANCIAL
PERSPECTIVE
Long-term
Shareholder Value

Cost Efficiency Revenue Growth

Improve Cost Structure Expand Revenue


Opportunities
Increase Asset Utilization Enhance Customer Value
STRATEGIC MAP FRAMEWORK
Long-term Shareholder
Value

Cost Efficiency Revenue Growth


Financial

Price Quality Service Availability Brand

Customer

Operations Customer Regulatory


Innovation
and Social
Management Management Processes
Processes
Processes Processes

Internal Process

Learning & Growth

Human Capital Organization Capital Information Capital


Human Capital Organization Capital Information Capital
CONLUSION

BALANCE SCORECARD BRINGS ALL


THE FUNCTIONS OF ORGANISATION
LIKE MARKETING , FINANCE,HR,AND
PRODUCTION , R&D TO WORK
COLLABORATELY AND ACHIEVE
VISION.

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