SCORECARD =FROM PERFORMANCE MEASURAMENT TO STRATEGIC MANAGEMENT
Valuation VS. Value Creation
Value rfom intangible assets is indirect
Improvements in intangible assets affect financial outcomes throuhg chainf os cause-and-effect relationships
Investments in employee training lead to improvements in service quality
Better service quality lead to higher customer satisfaction
Increased customer loyalty generates increased revenues and margins
Complex linkages to place financial value on a asset such a workforce capabilities or employee morale, much less to measure period-to-period changes
Linkages intangible and tangible assets and internal processes
Strategy Maps
Financial
Customer
Learning and Growth
Internal Business Processes
Revenue growths and productivity
Build the franchise with revenue from new markts, new products, and new customers, increase sales to existing customers by deepening relationships, incluiding cross-selling multiple products and services, and offering complete solutions. Improue the cost structure and utilize assets more efficiently
Mix of products, price, service, relationship, and image offered. Diferentiation from competitors to attract, retain, and deepen relationships with targeted customeres. The value proposition is crucial because it helps to connect the internal processes to improved outcomes with the customers
Operational excellence, customer intimacy, and product leadership. Markets share in targeted customer segments, account share with targeted customers, acquisition and retention of customers in targeted segments, and customer profitability
Build the franchise by spurring innovation to develop new products and services and to penetrate new markets and customer segments
Increase customer value by expanding and deepening relationships with existing customers
Achieve Operatinal Excellence
Become a good corporate citizen
Stakeholder and key perforance indicator scorecards
Measurement creates focus for the future. The measures chosen by managers communicateimortant sessages to all organizational units and employees. To take full advantage of this power, companies soon integrates their new measures into a managements system
Balance Scorecards concept evolved from a performance measurement system to become the organizing framework, the operationg system, for a new strategy system
Several organizations achieving performance breakthrouughs within two to three years of implementation.
The magnitude of the results achieved by the early adopters reveals the power of the Balanced Scorecard management system to focus the entire organization on strategy.
The speed with wich the new strategies deliver results indicates that the companies's successes are not due to a major new product or service launch , major new capital investments, or even the developmnet of newintangible or "intellectual" assets
The companies new strategies and the balance scorecard unleash the capabilities and assets previously hidden (or frozen) within the old organization.
The balance scorecard provides the "recipe" that enables ingredents already existing in the organization to be combined for long-term value creation
A new culture must emerge , centered not on traditional functional silos, but on the team effort required to implement the strategy. By clearly defining the strategy , communication it consistently, and linking it to the drivers of change, a performance-based culture emrges to link everyone and every unit to the unique features of the strategy
Modify the architecture of the balace Score card
Value Created
Legitimizing Support
Cost Incurred
MARÍA JOSÉ DE SANTOS PÉREZ I.D. 86934