Presentation for applied operations management

APPLIED OPERATIONS MANAGEMENT 1

T H E BA L A N C E D S C O R E C A R D

A N D T H E S T R AT E G I C M A P

MIGUEL SANCHEZ ARAUJO

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A BALANCE SCORECARD

 The concept of Balance Scorecard was introduced for the 1st time in the Harvard Business Review in 1992 by Robert Kaplan and David Norton, based on a study of a semiconductors company.

 This management system goes beyond the financial perspective that managers use to evaluate the performance of a company.

 The idea is not only to consider the traditional financial indicators (inventories, fixed assets, income, expenses, ...) but to include also some intangible assets (customer relationships, skills and motivations of employees, ...) as the main source of competitive advantage.

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4 PERSPECTIVES OF A BALANCE SCORECARD

CUSTOMER PERSPECTIVE

FINANCIAL PERSPECTIVE

INTERNAL (PROCESS) PERSPECTIVE

LEARNING & GROWTH PERSPECTIVE

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4 PERSPECTIVES OF A BALANCE SCORECARD

CUSTOMER PERSPECTIVE

FINANCIAL PERSPECTIVE

INTERNAL (PROCESS) PERSPECTIVE

LEARNING & GROWTH PERSPECTIVE

How do costumers see us?

How do we look to shareholders?

What must we excel at?

Can we continue to improve and create value?

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WHAT IS A STRATEGIC MAP?

 A strategy map is a visual representation of an organization’s overall objectives and how they relate to one another. The map is created during the strategic planning process and is used as a primary reference material during periodic strategy check-in and review meetings. It is one the main components of the balanced scorecard methodology.

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