Implementing balance scorecard for performance measurement. This is not an example of the work produced by our essay writing service. Creating an excelbased balanced scorecard to measure the performance of colleges of agriculture paper presented at american agricultural economics association annual meeting long beach, ca july 23 26, 2006 i. Leads to improvised organizational performance through measurements. The methodology of balanced scorecard has been developed to allow an efficient integration of many variables that must be considered when measuring the performance of companies. A process and framework that facilitates strategy development and strategic management while providing performance metrics to measure success against the strategy. The new company found the balance score card as a useful system to. Implementing the balanced scorecard case study solution, retail division of the bank chemical bank is facing lower margins and increased competition in lending and deposit gathering and processing business. How to develop a balanced scorecard into a strategy map. The balanced scorecard was used to convey the strategy to these new business units. Implementing the balanced scorecard case study solution, chemical bank.
Anytown hospital has just finished a twoday retreat where they revised and updated their mission and vision statements and drafted a strategic plan. Each business unit built its own balanced scorecard that was cascaded from the corporate balanced scorecard. However in the process of implementing the bsc into business, theory does not support the practices as well as it should. Building the scorecard requires focus on what you really do and who you really serve. The balanced scorecard measures that drive performance january february 1992 putting the balanced scorecard to work september october 1993 using the balanced scorecard as a strategic management system january february 1996 alignment and communicatio n acceptance and acclaim. It provides feedback on internal and external processes and outcomes in order to continuously improve strategic performance. Before analyzing the merger between chemical bank and hanover corporation, we start by presenting the context in the 90s. The balanced scorecard provides an enterprise view, making strategy everyones job. Alex castle, joseph etoo ndjongo, seungji hong, jordan natelson, yutong wang acct345001 professor duru april 22, 2014 case analysis. The balanced scorecard, a concept for measuring whether the activities of a company are meeting its objectives in terms of vision and strategy, was developed and first used at analog devices in 1987. These survey results show that companies using the balanced scorecard are consistently benefitting from it. Implementation of balanced scorecard bsc in a malaysian glc having a bachelor degree, 21. Banks, investment firms, financial management organizations, and insurance companies have all found scorecarding to be an effective solution to managing strategy and aligning their organizations.
Those things we must do for our people so they can perform the internal processes people the resources we must obtain so our people. Executive summary the retail bank division of chemical bank was performing a. Performance evaluation, management control, balanced scorecard. Implementing the balanced scorecard the restructuring of chemical bank with the merger of chemical bank and the manufacturers hanover corporation has transformed the processes in which the companys strategies are implemented. Mli and fmoh engaged the balanced scorecard institute based upon the institutes experience in implementing the bsc framework within the public sector and based upon the fmohs successful pilot program which was built using the institutes nine steps to success public sector balanced scorecard framework. Retail division of the bank chemical bank is facing lower margins and increased competition in lending and deposit gathering and processing business. The case describes the development of strategic objectives and measures for four perspectives. The golden rules for implementing the balanced business. The use of the balanced scorecard in bank strategic management 49 1 introduction the year of 2012 has marked 20 years since the first publication on the balanced scorecard bsc by robert kaplan and david norton, professors of harvard business school hoque, 20. Division adapts the balanced scorecard to clarify and communicate the new strategy and to identify the key drivers for. About 70 percent of organizations had at least partially implemented a balanced scorecard by 2006. Organizational change was prescribed and a balanced scorecard approach was used to enable that change. The retail bank division of chemical bank faces declining margins and increased competition in its credit and deposit gathering and processing business.
Case analysis chemical bank strategic management sales scribd. The implementation of balanced scorecard within tehran stock. Managing bank performance with the balanced scorecard. The division adapts the balanced scorecard to clarify and communicate the new strategy and to identify the key drivers for strategic success. The balanced scorecard is widely used in companies, but there are so many pitfalls. After the acquisition of manufacturers hanover corporation in 1991, chemical bank became the second biggest bank in the us, behind citycorp, which was the main competitor of chemical bank. Download as docx, pdf, txt or read online from scribd. The focus will be on the balanced scorecard introduction in one. Balanced scorecard is a management system that enables organizations to translate the vision and strategy into action.
Unums success with its balanced scorecard has been the result of getting a number of fundamental things right building and implementing a balanced scorecard, case study. Then, we analyze the implementation of the balanced scorecard, and the impact of the merger. Balanced scorecard the process is iterative and inclusive. Pdf defining balanced scorecard in banking industry. The use of the balanced scorecard in bank strategic. The use of the balanced scorecard in bank strategic management. A brief introduction to the balanced scorecard why do companies need business scorecards. Pdf from the balanced scorecard bsc framework, which encourages the use of both financial and. The retail bank division of chemical bank faces declining margins and increased. The purpose of out study is about how to develop a model from balanced scorecard to strategy map. The purpose of this study is to contribute to the understanding of how bsc is developed and applied in evaluating the performance of a large local bank llb in iraq.
Balanced scorecard for barclays bank ghana limited. Based on this, a 10percentagepoint decline in chinas exports might mean a decline of about 2 percentage points in gdp growth on average. The balanced scorecard is used by both small and large organizations. A balanced scorecard thus balances financial key performance indicators with indicators that reflect on all other perspectives. The implementation of balanced scorecard within tehran stock exchange companies. Pdf balanced scorecard implementation at rang dong plastic. The process of implementation of the bsc systems proved very. Defining balanced scorecard in banking industry, using fahp approach article pdf available january 2015 with 4,979 reads how we measure reads. Align the workforce to meet the organizations strategy on a daytoday basis. This system provides feedback on internal business processes and external outcomes to continually improve organizational performance and results. Principles of balanced scorecard linkedin slideshare. And even when you have a solid strategy, trying to measure your success can be even more complicated. In other words, the balanced scorecard is one of a set of tools used for strategy formulation and communication.
The balanced scorecard was introduced to define strategic priorities and provide a structure to link strategy, budgeting and results. The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. A concise, informative balanced scorecard example for. Vision and strategy, the vision is the future and the gap between now and the future leads to a plan of action to achieve the vision. Read articles about balanced scorecard hbs working knowledge. Implementing the scorecard typically includes four processes. The balanced scorecard retains traditional financial measures. He would like to implement a new strategy to become the preferred provider of financial services to the target groups. The latest business management research and ideas from hbs faculty. You cant manage what you cant measure the only way managers can determine if their organizations are on the right path toward achieving their objectives is by monitoring performance in a discipline and constant manner. Implementing balance scorecard for performance measurement 11 figure 1. Increases the focus on the business strategy and its outcomes. The implementation of balanced scorecard within tehran.
While that figure is declining, it is still sizeable. However, comingup with a good strategy is not always simple. The balanced scorecard focuses on factors that create longterm value traditional financial reports look backward reflect only the past. Bank of america is not responsible for user posts and other user content appearing on this website and does not endorse or guarantee the perspectives, the advice, the users, the businesses, or the products or services sold by any users or. Finally, in order to compare the merger of chemical bank with manufactures hanover corporation we treat the merger of two french. Below, she offers her suggestions based on her experience with canada life and other organizations. Introduction need for measurementstrategic planning, university of minnesota strategic planning effort ii. The competitiveness and balanced the competitiveness. This longitudinal case study aims to further develop the accounting change model of cobb et al.
The division adapts the balanced scorecard to clarify and communicate the new strategy and to identify the key drivers for. The need for a balanced scorecard following are some of the points that describe the need for implementing a balanced scorecard. The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align day to day activities of employees to the. Customer meeting the expectation of customer understand customer segment develop new products crosssell the product line 2. It wishes to implement a new strategy to become a preferred financial service provider to target customer groups. Strategic objectives such as increasing service quality, optimizing infrastructure management systems and ensuring payroll accuracy are all pieces of a balanced scorecard that reflect bank performance from all possible. Within two years, mobil had moved from last in their industry to first. Nov 20, 20 thus, in the case of chemical bank, the main reasons to use a balanced scorecard with all these measures are. Implementing the balanced scorecard xls file, chemical bank. Balanced scorecard is a set of criteria that allows managers a holistic view of the organization. I have used a model to examine how the balanced scorecard cabe used to assess n performance of banks in several dimensions and measures in order to provide additional information to all stakeholders internally and externally.
Organizational perspectives in balance scorecard financial to succeed financially, how should we appear to our shareholders. Thesis for the masters degree in business administration. O b j e c t i v e s m e a s u r e s t a r g e t s i n i t i a i v e s customer to achieve our vision, how should we appear to our customers. We will choose ericsson as our case study, so the situation of. Balanced scorecard basics communicat business systems. My experiences as a balanced scorecard practitioner with a large canadian company taught me that tremendous results are possible with the tool, but to attain. The balanced scorecard is a workshop technique for establishing the most useful high level measures by which to monitor your companys units progress and performance against its strategic goals. Its a great team building activity, process management tool and, when you do it properly, you end up with an action plan thats fully. The balanced scorecard provides an enterprise view. Pdf defining balanced scorecard in banking industry, using. Implementing the balanced scorecard case solution,chemical bank. Explore and explain how the balanced scorecard is implemented into a strategy map. Balanced scorecard history introduced in 1992, by robert kaplan and david norton revolutionised conventional thinking about performance metrics by going beyond traditional measures of. What follows, provides guidance and advice on the development and implementation of a balanced scorecard for those organisations considering the introduction of a.
She recently designed and implemented a bsc at canada life. Creating an excelbased balanced scorecard to measure the. Implementing the balanced scorecard case analysis, chemical bank. The key elements of balanced scorecard success by sandy richardson sandy richardson is managing consultant for strategy focused business solutions inc. Smart companies plan their development for both the near and far future. But financial measures tell the story of past events, an. Balanced scorecard scorecards the balanced scorecard has been proven effective in a variety of environments, including financial institutions. Thus, in the case of chemical bank, the main reasons to use a balanced scorecard with all these measures are. Balanced scorecard example the following is an example of how one might develop a balanced scorecard. Hence, in recent years a shift towards the balanced scorecard bsc has emerged as a managerial approach to evaluate the strategic performance of the organization. Balanced scorecard topic gateway series essentially, the bsc is a management system that enables an organisation to identify and clarify its vision and strategy, and translate them into action.
Kaplan and norton describe the innovation of the balanced scorecard as follows. While numerous articles have been written about the balanced scorecard e. Robert kaplan and david norton created the balanced scorecard approach in the. The balanced scorecard is a management system that enables an organization to clarify their vision and strategy and translate it into action. Pdf on jan 1, 2015, malihe rostami and others published defining balanced scorecard in banking industry, using fahp approach find, read and cite all the research you need on researchgate. Advanced micro devices, dhc chemical division, nat west bank, chemical bank.
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