Balanced Score Card

Banasthali
University

Strategic
Management

Balanced Scorecard
A Case Study

Presented to :
Ms. Neeti Kasliwal

Presented by:
Atula Singh Sirohi

FIRST BALANCED SCORECARD
Banasthali
University

Strategic
Management

 The first balanced scorecard in the world was created and implemented by Analog
Device, Inc. (ADI), USA ; as an offshoot of the company’s strategic planning process.
 ADI’s SPP was driven by strategic objectives which related to its stakeholders customers, suppliers, employees, society, etc.
 Both the internal and external perspectives led the company to realize that the nonfinancial goals were the drivers of business success.
 Drawing from its strategy and strategic thinking, ADI developed the scorecard metrics with a clear link between the metrics and strategic objectives.
 The quality improvement process (QIP) was the TMQ framework used for this purpose.

STRATEGIC PLANNING PROCESS
Banasthali
University

WHY IT MATTERS?
 SPP helps an organization to identify and create opportunities to meet the needs of its various stakeholders.

Strategic
Management

STEPS
1. Stakeholders and strategic objectives
2. Stakeholders’ needs
3. Performance gap

 Customers are more knowledgeable now and have become very demanding.

4. Performance improvement linked to internal processes

 Employees also have more knowledge and have become knowledge workers.

5. Process improvement priorities

 Suppliers of capital are looking for sustained performance and long-term success in the capital markets.

6. Performance metrics
7. Communicate performance metrics
8. Critical process initiatives
9. Performance evaluation
10. Feedback

Banasthali
University

WHAT IS A BALANCED SCORECARD?

Strategic
Management

“The balanced scorecard retains traditional financial measures. But, financial measures tell the story of past events, an adequate story for industrial-age companies for which