Balanced Scorecard (BSC)

Course review:

The Balanced Scorecard (BSC) has attracted much attention over the last ten years. A growing number of large organisations, as well as several medium and small-sized ones, now have experience with the BSC.

The implementation of a BSC will have far-reaching consequences for your organisation and employees. Ernst & Young Advisory Services will share their vision on how the BSC can contribute to the achievement of your strategic goals, as well as on how it should be implemented.

The authors present the BSC as both a measurement system and an essential cornerstone in the management system that identifies strategic objectives and operational measures across four perspectives.

These essential perspectives (financial, customer, internal process, and learning and growth) allow companies to specify the objectives that balance short-term financial performance with the drivers of growth opportunities for the future.

Content
LESSON I Why organisations need a Balanced Scorecard

• Initial introduction to the BSC and its development
• An overview of the BSC theory
• The use of the four perspectives
• The BSC compared to other theories
• Could the BSC concept be of use to your organisation?

LESSON II Value Based Management using the BSC

• Why value value?
• What drives value?
• The goal of VBM is the improvement of performance
• Using the BSC to monitor and improve value drivers

LESSON III A deeper understanding of the four perspectives

• The financial perspective
• The customer perspective
• The internal process perspective
• The learning and growth perspective

LESSON IV Translating strategy into measures

• Corporate strategy and the consequences of performance management
• Business unit strategy and the consequences for performance management
• Strategy drives the scorecard
• Building a scorecard that suits your strategy

LESSON V The alignment of management control processes

• Using the BSC in a management control process
• Traditional and other definitions of management control
• Control mechanism to drive strategic renewal
• Effective management control requires alignment
• Setting up an effective management control system
• Programme selection
• Budgeting
• Operations and measurement
• Reporting and analysis

LESSON VI Information technology as an enabler

• Data warehousing
• ERP
• Intranet and extranet
• The possibilities offered by IT
• Vendors
• What to look for when selecting a vendor
• Challenges when automating a BSC

LESSON VII Orchestrating change using the Balanced Scorecard

• Critical success factors in implementing the BSC
• Developing leadership for the changes the BSC will bring
• Developing a business case
• Developing a change strategy
• Building commitment
• Aligning the organisation

LESSON VIII The project that successfully builds the Scorecard

• More cases