平衡計分卡短期課程資料
Excellence in Financial Management Course 11: The Balanced Scorecard Prepared by: Matt H. Evans, CPA, CMA, CFM This course provides a step-by-step guide on how to build a Balanced Scorecard. An understanding of strategic planning is recommended prior to taking this course. Refer to Course 10 on strategic planning. This course is recommended for 2 hours of Continuing Professional Education. In order to receive credit, you will need to pass a multiple-choice exam which is administered by installing the exe file version of this short course. The exe file can be downloaded from www.exinfm.com/training Revised: February 4, 2002 Basic Concepts Accountants communicate with financial statements. Engineers communicate with as-built drawings. Architects communicate with physical models. It seems that almost every profession has some means of communicating clearly to the end user. However, for people engaged in strategic planning there has been an on-going dilemma. The finished product, the strategic plan, has not communicated and reached the end user. Sure strategic plans are nice to look at, full of bar charts, nice covers, well written, and professionally prepared; but they simply have not impacted the people who must execute the strategic plan. The end result has been poor execution of the strategic plan throughout the entire organization. And the sad fact of the matter is that execution of the strategic plan is everybody’s business, not just upper level management. Upper level management creates the strategy, but execution takes place from the bottom up. Chapter 1 So why do strategic plans fail? According to the Balanced Scorecard Collaborative, there are four barriers to strategic implementation: 1. Vision Barrier – No one in the organization understands the strategies of the organization. 2. People Barrier – Most people have objectives that are not linked to the strategy of the organization. 3. Resource Barrier – Time, energy, and money are not allocated to those things that are critical to the organization. For example, budgets are not linked to strategy, resulting in wasted resources. 4. Management Barrier – Management spends too little time on strategy and too much time on short-term tactical decision-making. Therefore, we need a new way of communicating strategy to the end-user. Enter the Balanced Scorecard. At long last, strategic planners now have a crisp and clear way of communicating strategy. With balanced scorecards, strategy reaches everyone in a language that makes sense. When strategy is expressed in terms of measurements and targets, the employee can relate to what must happen. This leads to much better execution of strategy. Not only does the Balanced Scorecard transform how the strategic plan is expressed, but it also pulls everything together. This is the so-called “cause and effect” relationship or linking of all elements together. For example, if you want strong financial results, you must have great customer service. If you want great customer service, you must have excellent processes in place (such as Customer Relations Management). If you want great processes, you must have the right people, knowledge, and systems (intellectual capital). In the past, many components for implementing a strategic plan have been managed separately, not collectively within one overall management system. As a result, everything has moved in different directions, leading to poor execution of the strategic plan. Like a marching band, everyone needs to move in lockstep behind one overall strategy. Therefore, you should think of the Balanced Scorecard as a management system, not just another performance measurement program. And since strategy is at the center of value-creation for the organization, the Balanced Scorecard has become a critical management system for any organization. In 1997, Harvard Business Review called the Balanced Scorecard one of the most significant business developments of the previous 75 years. Balanced Scorecards provide the framework around which an organization changes through the execution of its strategy. This is accomplished by linking everything together. This is what makes the Balanced Scorecard so different; it captures the cause and effect relationship throughout every part of the organization. In the case of Mobil Oil, the truck driver pulls a balanced scorecard off the visor in his cab, outlining the five things he must do as a truck driver. Like a laser beam, strategy now has a clear path to everyone in the organization. Throughout the entire process of building and implementing a balanced scorecard, we all need to speak the same language. Therefore, the first thing to get out of the way is to understand a few terms: Cause Effect Relationship: The natural flow of business performance from a lower level to an upper level within or between perspectives. For example, training employees on customer relation’s leads to better customer service which in turn leads to improved financial results. One side is the leader or driver, producing an end result or effect on the other side. Goal: An overall achievement that is considered critical to the future success of the organization Goals express where the organization wants to be. Measurement: A way of monitoring and tracking the progress of strategic objectives. Measurements can be leading indicators of performance (leads to an end result) or lagging indicators (the end results). Objective: What specifically must be done to execute the strategy; i.e. what is critical to the future success of our strategy? What the organization must do to reach its goals! Perspectives: Four or five different views of what drives the organization. Perspectives provide a framework for measurement. The four most common perspectives are: Financial (final outcomes), Customer, Internal Processes, and Learning & Growth. Programs: Major initiatives or projects that must be undertaken in order to meet one or more strategic objectives. Strategic Area: A major strategic thrust for the organization, such as maximizing shareholder value or improving the efficiency of operations. Strategic areas define the scope for building the balanced scorecard system. Strategic Grid: A logical framework for organizing a collection of strategic objectives over four or more perspectives. Everything is linked to capture a cause and effect relationship. Strategic grids are the foundation for building the Balanced Scorecard. Strategic Model: The combination of all strategic objectives over a strategic grid, well connected and complete, providing one single model or structure for managing the strategic area. Strategy: An expression of what the organization must do to get from one reference point to another reference point. Strategy is often expressed in terms of a mission statement, vision, goals, and objectives. Strategy is usually developed at the top levels of the organization, but executed by lower levels within the organization. Target: An expected level of performance or improvement required in the future. Templates: Visual tools for assisting people with building a balanced scorecard, typically used for capturing and comparing data within the four components of the Balanced Scorecard: Strategic Grids, Measurements, Targets, and Programs. Vision: An overall statement of how the organization wants to be perceived over the long-term (3 to 5 years). Now that you understand the purpose and terminology behind the Balanced Scorecard, let’s describe the overall process on how we will build the Balanced Scorecard. The process consists of seven steps over three phases: Phase I: The Strategic Foundation Step 1: Communicate and align the organization around a clear and concise strategy. This is the fundamental starting point behind everything else. Your strategy is what “feeds” the Balanced Scorecard. Step 2: Determine the major strategic areas or scope for getting the organization focused on those things the organization can actually do. Step 3: Build a strategic grid for each major strategic area (step 2) of the business. Out of all the steps in the entire process, this can be the most difficult since we must take our entire strategy (step 1) and transform it into specific terms that everyone can understand. And everything must be linked to form one complete strategic model. Phase II: Three Critical Components Step 4: Establish Measurements: For each strategic objective on each strategic grid, there needs to be at least one measurement. Measurement provides the feedback on whether or not we are meeting our strategic objectives. Step 5: Set Targets for each measurement: For each measurement in your scorecard, establish a corresponding target. Step 6: Launch Programs: Things will not happen unless the organization undertakes formal programs, initiatives or projects. This effectively closes the loop and links us back to where we started – driving the strategy that was formulated in phase I. Phase III: Deployment Step 7: Once the Balanced Scorecard has been built, you need to push the entire process into other parts of the organization until you construct a single coherent management system. This pulls everything together, allowing successful execution of your strategy. Don’t worry if all of this doesn’t make sense yet! The remainder of this short course will describe in detail each of the steps outlined above. Once you have completed this short course, you should have a solid understanding of what is required for building a great balanced scorecard. Phase I: The Strategic Foundation Chapter 2 When balanced scorecards were first introduced, it seems that everyone rushed to put a whole new set of measurements in place. However, this is not how to build a balanced scorecard. Strategizing is critically important to building a good balanced scorecard. In fact, it is so important that the authors of the book, The Balanced Scorecard, Robert S. Kaplan and David P. Norton, released a fol...
平衡計分卡短期課程資料