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    BSC - HR

    Uploaded by

    rizmin

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    BSC - HR

    Uploaded by

    rizmin
    1 views22 pages

    Copyright

    © © All Rights Reserved

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    PPTX, PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    1 views22 pages

    BSC - HR

    Uploaded by

    rizmin

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 22

    Balanced Scorecard

    (BSC)
    A Strategic Performance Measurement Tool
    Scope of HRM Activities
    Performance
    1 HR Planning 6
    Appraisals

    Job Analysis &


    2 7 Remunerations
    Design

    Recruitment &
    3 8 Welfare & Safety
    Selection

    Induction &
    4 9 Industrial Relations
    Orientation

    Training &
    5 10 Employee Grievance
    Development
    Employee Lifecycle
    Introduction
    • A Novel Approach to
    strategic management.
    • Developed in early 90’s by
    Robert Kaplan and David
    Norton
    • Provides a clear
    prescription as to what
    organizations should
    measure in order to
    'balance’ the financial
    perspective.
    1 /18

    What is Balanced Scorecard?


    • The Balanced Scorecard
    (BSC) model is a strategic
    management
    measurement tool used
    by management teams to
    set and measure
    performance in a way that
    is aligned with the vision
    and strategy of the
    organization.
    2 /18

    AHG Vision & Mission

    Our Vision Our Mission


    “To be one of the Leading To Continuously strive to be
    Manufacturing, Trading, a total solution provider
    and Services group in the in Manufacturing, Trading,
    Sultanate of Oman, and and Services by focusing on
    GCC region.” Innovation, technology
    and inspiration by
    exceeding Stakeholders
    Satisfaction in Sultanate of
    Oman & GCC region
    3 /18

    Why use a Balanced Scorecard?


    • Monitor and communicate
    progress towards our strategic
    targets.
    • Link everyone’s day-to-day work
    to the strategy and vision.
    • Prioritize your projects,
    products, and services.
    • Increase financial health,
    increase customer satisfaction,
    improve efficiency, and increase
    knowledge and innovation within
    the organization.
    4 /18
    How to use a balanced
    Scorecard?
    • The Balanced Scorecard involves
    measuring the performance of a business
    from four perspectives, all linked to the
    vision and strategy of the organization.
    The characteristics of balanced
    scorecards include that they’re:
    • Balanced: They consider both financial
    and non-financial performance
    measures equally important.
    • A scorecard: allowing us to track how
    we’re doing.
    • High-level: enabling us to see our
    most important performance measures.
    • Long-term: meaning they link
    performance targets to the long-term
    vision and strategy of the business.
    5 /18

    Vision, Mission with Four Areas


    The model has four
    perspectives. These are:
    1. Financial
    perspective.
    2. Customer
    perspective.
    3. Internal perspective.
    4. Learning and
    growth perspective.
    6/18
    Focus:
    Focus:
    Customer Satisfaction
    The financial Performance
    KPI:
    KPI:
    • ▲ Quality
    • ▼ OPEX
    • Be First Choice
    • ▲ Profit
    • ▲ Revenue
    Financial Customer • Retained
    Customers

    Vision &
    Strategy

    Focus: Focus:
    Productivity of the Business
    KPI:
    Interna Learning &
    Knowledge &
    Innovation
    KPI:
    •▲ Process Efficiency
    •▲ Health & Safety l Growth • Provide Leadership
    Training
    •▲ Lead Innovation
    Proces • Level of New Product
    Ideas
    s • Employee Satisfaction
    7 /18

    1. Financial Perspective
    The focus of this perspective is the
    financial performance of the
    organization. Commonly used KPIs
    for this perspective are:
    • Revenue: How much revenue do
    we generate over the period (daily,
    monthly, or annually)?
    • OPEX: Your OPerational
    EXpendaturs, or in other words,
    how much we spend running the
    business.
    • Net profit: How much profit do we
    generate after subtracting all
    costs?
    8 /18

    2. Customer Perspective
    The focus of this perspective is
    customer satisfaction. Commonly
    used KPIs for this perspective are:
    • Quality Products: What
    percentage of goods we ship do
    customers return?
    • Customer Retention: The ability
    of an organization to retain its
    existing customers over a period of
    time.
    • Be first choice vs Competitors: .
    A measure of how happy our
    customers are with our high-quality
    products and services to chose us.
    9 /18

    3. Internal Perspective
    The focus of the internal perspective is
    the efficiency of the business; in other
    words, how much time, money, or
    resources are needed to run your
    business. Commonly used KPIs for this
    perspective are:
    • Process Efficiency: The ability of an
    organization to optimize its operations
    and resources to achieve maximum
    output with minimum input.
    • Health & safety: The practices
    implemented to protect the well-being
    and physical integrity of employees
    while they are on the job
    • Lead Innovation: Focusing on the
    internal capabilities, processes, and
    10
    4. Learning and Growth /18

    Perspective
    This perspective focuses on maintaining
    and growing your internal knowledge and
    innovation. Commonly used KPIs for this
    perspective are:
    • Provide Leadership Training: Entails
    equipping individuals with the
    knowledge, skills, and attributes
    necessary to effectively lead and inspire
    others in a professional setting.
    • Level of new product ideas: How
    many new ideas do you generate over
    time?
    • Employee satisfaction: How happy
    our employees are working for our
    organization.
    11
    /18

    Lagging
    Indicators

    Leading
    Indicators
    12
    /19
    1. Strategic Destination
    • Vision: A statement detailing
    where you aspire to be
    • Mission: A statement defining
    what you want to do
    • Strategic Priorities: The
    most important things
    organization should focus on
    over a specific period of time.
    • Strategic Results: The
    desired end state at the end of
    the period of time.
    13
    /18
    2.Linked Strategic Objectives
    • The idea is to select a few
    strategic objectives for
    each perspective based
    on your strategy. Once
    you’ve chosen your
    objectives, the next step
    is to link them to show
    cause and effect.
    14
    /18
    3. Program/Initiative
    • The Initiative section
    allows you to list the
    projects that you hope will
    move the needle of your
    KPIs.
    15
    /18
    Cascading Strategy Map
    • Each functional unit within
    the organization takes the
    organizational strategy
    map and creates its own
    functional unit strategy
    map that shows how the
    functional unit contributes
    to the organizational
    strategy.
    16
    /18
    Advantages
    • Essential strategic information is
    contained in a single place rather
    than spread around several
    documents and systems.
    • They align every employee with
    the organization’s strategy.
    • They ensure that your strategy is
    balanced across the four
    perspectives.
    • They make communicating your
    strategy and measuring progress
    towards achieving your strategy
    easier.
    17
    /18
    Disadvantages
    • Creating a balanced
    scorecard and cascading it
    through your organization
    can take a lot of time.
    • Every organization is unique
    and so each balanced
    scorecard must be tailored to
    each organization.
    • If you try to do too much,
    balanced scorecards and
    strategy maps can get
    complicated very quickly.
    18
    /18

    Thanks for your Attention; Any


    Question?

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