某著名企业平衡计分卡UTABBSCPAPER9DWI

UTAB–TheBalancedScorecardProject2002/2003UddeholmToolingABHagfors,October3,2002IntroductionandDiscussionPaperGettinganoverviewontheBalancedScorecardconceptFollowingtheprocessofcascadingdownaBalancedScorecardViewinganexampleofaBalancedScorecardProjectLookingataproposedworkplanDiscussingthenextstepsObjectivesofthisPresentationTheaimofthispresentationistobeinformedaboutthefollowingaspects:12/10/20252UTABBSCPAPER9D-2002WI.PPT1TheBalancedScorecardConceptDesigningtheBalancedScorecardImplementingthe

BalancedScorecard2BalancedScorecardExample3ProjectApproachandProjectPlan4Summary5References6NextSteps

Contents12/10/20253UTABBSCPAPER9D-2002WI.PPTThepurposeoftheBalancedScorecard...

“...istotranslatestrategyintomeasuresthatuniquelymunicateyourvisiontotheorganisation.”12/10/20254UTABBSCPAPER9D-2002WI.PPTTheBalancedScorecard(BSC)isbasedonaverysimplePhilosophyWhatgetsmeasured,getsdone!12/10/20255UTABBSCPAPER9D-2002WI.PPTTraditionalManagementSystemsarebackwardlooking

andtrackonlytheoueofprocessesPossibilitytotakecorrectiveactionsintheprocessHighLowClientRequestOrderOrderProcessingProductionDistributionBillingAccountManagementMonetaryTransactionAccountingFinancialResultTraditionalControllingstartsattheendofthewholeprocesschain!Thisprocedureofbackwardlookingleadstoaconsiderabletimelagofseveralweeks/months...12/10/20256UTABBSCPAPER9D-2002WI.PPTThisleadstomissedopportunitiesinmanagingprocessesmoreproactivelyMissedopportunitiestomanageprocessesmoreeffectivelyareevenmorecrucialifmanyprocessesrunsimultaneously.TimePossibilitytotakecorrectiveactionsintheprocessHighLowMissedopportunitytomanagetheprocessClientRequestOrderOrderProcessingProductionDistributionBillingAccountManagementMonetaryTransactionAccountingFinancialResultClientRequestOrderOrderProcessingProductionDistributionBillingAccountManagementMonetaryTransactionAccountingFinancialResultClientRequestOrderOrderProcessingProductionDistributionBillingAccountManagementMonetaryTransactionAccountingFinancialResult12/10/20257UTABBSCPAPER9D-2002WI.PPTDailywork/dailybusinessProjects/InitiativesManagement‘sChallengelieswithinthebinationofStrategyandDailyBusinessNewProductsInvestmentprioritiesProfitabilityGrowthof

TurnoverQualityCustomersatisfactionTheVision123ProcessImprove-mentEfficiencyEmployeemotivationQualityGlobalisationMultitudeofgoals,manydifferentinitiatives,unrecognisablecoherences,missing“overall”approach/toolVisionpanyValuesStrategy12/10/20258UTABBSCPAPER9D-2002WI.PPTAspectsofaManagementandMeasurementSystemlikeBSCBalancedScorecard(BSC)helpstofocusonstrategicactivitiesObjectives,ActivitiesandResultsAsharedvisionandmongoalsleadtofocusedalignmentoftheorganizationtowardsstrategicprioritiesmunication,MotivationAlignment,FocusmunicatedobjectiveswillleadtomoretransparencyandmotivationClearresponsibilitiesassurerapidactionIndividualcontributionbesvisibleChangesofindividualbehaviouroccurShifttowardsalearningorganizationResponsibility,Incentives,Actions

Measuringmotivates!12/10/20259UTABBSCPAPER9D-2002WI.PPTLetusaskourselvessome,maybeprovocativequestions...

12/10/202510UTABBSCPAPER9D-2002WI.PPTInmanypaniesthereisjustalimitedmonUnderstandingconcerningtheStrategicPriorities?WhenyouasktheManagementTeammembersforthestrategy–areyousuretoobtainalwaysthesameanswer?Towhatextentisthereanoverallagreementonthestrategicpriorities?Towhatextentareallprojectsandinternalactivitiesalignedtotheachievementofthesetargets?Alignment,Focus12/10/202511UTABBSCPAPER9D-2002WI.PPTTowhatExtentistheStrategytransparentandprehensibletotheEmployees?Areallemployeesabletoanswerquestionsonthefinancialandcustomerfocusedobjectives?Doestheinternalsteeringsystemtellthe„samestory“asthestrategy?TowhatextenthadtheemployeesbeeninvolvedinthedevelopmentoftheKPI(KeyPerformanceIndicators)?munication,Motivation12/10/202512UTABBSCPAPER9D-2002WI.PPTDotheactualRoles,ResponsibilitiesandIncentiveSystemsreflecttheStrategicObjectivesofthepany?Dotheemployeessucceedindescribingtheirdailyshareinobtainingthefinancialandcustomerrelatedtargets?Aretheresponsibilitiesforreachingtheobjectivesclearlydefined?Doestheactualincentivesystemsupporttheobtainingofthestrategicobjectives?ResponsibilityIncentivesAction

12/10/202513UTABBSCPAPER9D-2002WI.PPTTheBalancedScorecardisboth,anInstrumenttoImplementtheStrategyandanInstrumenttoMeasuretheResultsAnalysisofStatusquoStrategicScenariosStrategyDevelopmentProcess(quarterly,annual)ManagementProcess(weekly,monthly)BalancedScorecardMeasurementofResults&

continuousFeedbackImplementationoftheStrategy

DefinitionofStrategyTop

DownBottom

UpGap-AnalysisWherearewetoday?Whataretheprioritiesinclosinggaps?Whataretheobjectives?

Whentobemet?ObjectivesKPIdefinitionHowtodefine/balancemeasurementcategories?ImprovementsHowtoclosethegaps?Plan/ActualparisonHowdidweperformparedtoplan?FinancialPerspectiveVision/

StrategyCustomerPerspectiveLearn&InnovationPerspectiveInternalProcessPerspective12/10/202514UTABBSCPAPER9D-2002WI.PPTDefiningabalancedsetofobjectives,andtherespectivekeyperformanceindicators(KPIs)Measuringprogressachieved-because“onlywhatyoumeasuregetsdone”!Forcingmanagementtofocusonasmall,yetbalancedhandfulofmeasuresdeemedmostcriticaltoachievetheoverallobjectivesTheunderlyingprinciplesoftheBalancedScorecardaresimplebutpowerful.TheBalancedScorecarddefinesObjectivesinorderto

aligntheorganizationandtosupporttargetorientedchangesUnderlyingprinciplesofBalancedScorecardFinancialPerspectiveWhatareour

financialgoals?Vision/

StrategyCustomerPerspectiveHowdowelooktoourcustomers?Learning&Innov.PerspectiveHowtoenableinnovation,changeandimprovement?InternalProcessPerspectiveWhatdoesgoodlooklikeinternally?12/10/202515UTABBSCPAPER9D-2002WI.PPTInAcknowledgementoftheStrategicCoreThemeswescreentheCausesandEffectsforallfourPerspectives.FinancialPerspectiveCustomerPerspectiveInternalProcessesPerspectiveLearning&InnovationPerspective

StrategiccorethemesExceptionallyeffectivemanagementoftheexistingcorebusinessEffectiveintroductionofsuccessfulnewproduct

GrowththroughgoodinvestmentsIncreasing

themarketvalueEnsuringcustomerloyaltyIncreasingsalespercustomerMaking

betteruseofexisting

technologyIncreasing

salesOffering

uniqueadded

valueImproving

planningRealising

thebudgetandsales

planPerforming

asgoodincoreasinnon-coreareasIncreasing

profitabilityMaking

buyingUTABan

positiveexperienceMakingthe“basictopics”

rightOpening

upnew

distributionchannelsOffering

thebest

serviceDeveloping

thebrand

imageImproving

deliveryImproving

productionWell

directed

investmentsDevelopingapanyattitudeofconstantimprovementLivingup

tothepany

valuesHiringgoodanddevelopthemtothebestHoldingonto

motivatedand

loyalemployeesWORKINGEXAMPLECausesandEffectsGainingnewcustomers12/10/202516UTABBSCPAPER9D-2002WI.PPTTheCause-Effect-ChainsformstheBasisforthe

DefinitionoftheObjectives…...FinancialPerspectiveShareholdervalueGrowthCapitalefficiencyCustomerperspectiveCustomerserviceCost-performanceratioCustomerloyaltyInternalProcessesPerspectiveProductivityDevelopmenttimeCustomerfocusLearning&InnovationPerspectiveAbilitytoworkin

ateamEmployeemotivationStaffefficiencyIncreasing

themarketvalueIncreasingsalespercustomerMaking

betteruseofexisting

technologyIncreasing

salesImproving

planningRealising

thebudgetandsales

planPerforming

asgoodincoreasinnon-coreareasIncreasing

profitabilityMaking

buyingUTABan

positiveexperienceOpening

upnew

distributionchannelsOffering

thebest

serviceDeveloping

thebrand

imageImproving

deliveryImproving

productionWell

directed

investmentsDevelopingapanyattitudeofconstantimprovementLivingup

tothepany

valuesHiringgoodanddevelopthemtothebestHoldingonto

motivatedand

loyalemployeesGainingnewcustomers12/10/202517UTABBSCPAPER9D-2002WI.PPTLearningandInnovationPerspectiveInternalProcessesPerspectiveCustomerPerspectiveFinancialPerspective

Howcanwemapourvisionasstrategicgoals?Howdowewanttomeasureandtrackourstrategicsuccess?Whichperformancedoweexactlystriveforintheseareas?Whichinitiativesallowustomeetthetargets?Whichpersonisrespon-sibleforthisinitiative?TheBalancedScorecardDesignlinks

ObjectivestoKPIs,Targets,InitiativesandfinallyResponsibilitiesBalancedScorecardDesigntobedoneforallfourperspectivesObjectivesKPIsTargetfiguresbaseline/yearnActivities,InitiativesRespon-sibility12/10/202518UTABBSCPAPER9D-2002WI.PPT...andgivetheInputfortheDefinitionofKPIsand

TargetfiguresCustomerperspectiveInternalProcessesPerspectiveObjectiveKPITargetFiguresCustomerserviceCost-performanceratioCustomerloyaltyCustomersatisfactionindexPrice-basketRatioofsalestonewandalreadyexistingcustomersImprovementby30%in200320%aboveaveragebypetitors60%atendof2003ProductivityDevelopmenttimeCustomerfocusTurnoverperworkinghourTimetomarketNumberofdevelopment

partnershipswithcustomers30%improvementuntil2003ReductiontoxmonthsDoublingwithin2yearsLearning&InnovationPerspectiveMotivationindexTurnoverperworkinghour+30%atendof2003+20%untilendof2003EmployeemotivationStaffefficiencyTeamworkabilityFinancialPerspectiveShareholdervalueGrowthCapitalefficiencyIncreaseofdividendShareofturn-overbynewproductsROCE+x%peryear25%untilendof200317%untilyear2004Vision/

Strategy12/10/202519UTABBSCPAPER9D-2002WI.PPTTheImplementationoftheBalancedScorecard

meansDrillingDowntoallRelevantpanyLevelsCascadingdowntheBalancedScorecardTheimplementationprocessensuresthateachlevelunderstandsitscontributiontothehigherlevelandtheoverallstrategicobjectives.Uddeholm

ToolingABCorporateScorecardDepart-

mentsHotFormingDepartmentScorecardMachining

DepartmentScorecardxyz

DepartmentScorecardSub-Depart-mentsHeatTreatmentScorecardForgingScorecard......Activities,Initiatives,Projects...Activityn.........FinancialPerspec.CustomerPerspec.Learn&InnovationPerspec.InternalProcPerspec.FinancialPerspec.CustomerPerspec.Learn&InnovationPerspec.InternalProcPerspec.FinancialPerspec.CustomerPerspec.Learn&InnovationPerspec.InternalProcPerspec.FinancialPerspec.CustomerPerspec.Learn&InnovationPerspec.InternalProcPerspec.FinancialPerspec.CustomerPerspec.Learn&InnovationPerspec.InternalProcPerspec.FinancialPerspec.CustomerPerspec.Learn&InnovationPerspec.InternalProcPerspec.FinancialPerspec.CustomerPerspec.Learn&InnovationPerspec.InternalProcPerspec.12/10/202520UTABBSCPAPER9D-2002WI.PPTObjectivesandTargetsonalllevelsaredirectlylinkedwiththeCorporateBSCCorporateBalancedScorecard(objectives,measures,targets

forintegration)FinallytheBalancedScorecardtellsacongruentstoryofstrategy

atalllevelsoftheorganizationCascadingdowntheBalancedScorecardDepartmentalScorecards(objectives,measures,targets)ClearfunctionalprioritiesandalignmentActivities,Initiatives,Projects...“ManagementbyObjectives”Clear

responsibilitiesforeachone“ALLFITTOGETHER”Top-level

consensuson“Whatis

important...”FinancialPerspec.CustomerPerspec.Learn&InnovationPerspec.InternalProcPerspec.FinancialPerspec.CustomerPerspec.Learn&InnovationPerspec.InternalProcPerspec.FinPersp.CustPersp.LearnPersp.IntPersp.FinancialPerspec.CustomerPerspec.Learn&InnovationPerspec.InternalProcPerspec.FinancialPerspec.CustomerPerspec.Learn&InnovationPerspec.InternalProcPerspec.12/10/202521UTABBSCPAPER9D-2002WI.PPT1TheBalancedScorecardConceptDesigningtheBalancedScorecardImplementingthe

BalancedScorecard2BalancedScorecardExample3ProjectApproachandProjectPlan4Summary5References6NextSteps

Contents12/10/202522UTABBSCPAPER9D-2002WI.PPT?FUTURETheVisionofaMayorSalesOrganisationwasdeveloped,

butnotunderstoodbytheEmployees“Webe

number

one!”WideproductbasketaddingvaluetothecustomerTheleadingsalesorganisationExploitlocalmarketplacesImprovingcustomerfocusyearonyearBestinEuropebybuildingthexybrandExceedcustomerexpectationsinsuchawayastodifferentiatepositivelyVisionstatedbyManagement“Idon’tthinkwherewe’regoingisunderstood”“Thereisnoclearlyarticulatedvision”“Ipersonallydisagree…”“Itwouldbenicetohaveaviewwhatwewanttobe”We’retransitioningfromtheOldtotheNewanddon’tknowwhatNewneeds”StatementsgivenbyEmployees12/10/202523UTABBSCPAPER9D-2002WI.PPTTopExecutive

InterviewsStrategicobjectivesandprioritiesoftopmanagementIdentificationofstrategicthemesandkeysuccessfactorsManagement

WorkshopsAlignmentofstrategicobjectivesandprioritiesDevelopmentof“CorporateScorecard”ObjectivesKPIsTargetsmunication

andAlignmentStrategicinitiativesLinktopensationandrewardsystemsCustomerPerspectiveRetaincustomerloyaltyIncreasecustomerspendAttractnewcustomersFinancialPerspectiveGrowSalesMaximiseProfitInvestWiselyBuildbetterOperatebetterSupplybetterTechnologybetterInternalProcesses

PerspectiveLearningandInnovationPerspectiveRecruitthebestDeveloppeopletobethebestRetainthemostloyal&mittedpeopleLivethevaluesVision/StrategyTheBalancedScorecardwasdevelopedina

WorkshopdrivenProcessHighLevelProcessAndResult12/10/202524UTABBSCPAPER9D-2002WI.PPTForeveryPerspectivetheactual

Objectives,KPIsandTargetFigureshadbeendevelopedCustomerPerspectiveRetaincustomerloyaltyIncreasecustomerspendAttractnewcustomers2.IncreasecustomerspendBestproductofferBestloyaltyclubBestserviceinUKAsstronginsalesasinserviceOntrackCustomerplan-InnovationCustomerplan-ServiceCustomerplan–AdditionalgadgetsGaporTimeLagBestpanytobuyimageNoservicereputationLoyaltyCardbehaviour1.RetainCustomerLoyaltyUnderstandcustomersbetterthananyoneBestValueformoneyMostenjoyableplacetoshopOntrackPricebasketCustomerplan-fundamentalsGaporTimeLagCustomerimageValueimageNo.ofdissatisfiedcustomers3.AttractnewcustomersDevelopandopennewsalesofficesDevelopandopennewchannelsPersonifyABCLtdvaluesOntrackProjectedrevenuefromnewproductsNewchannelsdevelopmentplanGaporTimeLagValueofnewcustomersActualnewsalesofficesBrandimageExample

“CustomerPerspective”FinancialPerspectiveVision/

StrategyCustomerPerspectiveLearn&InnovationPerspectiveInternalProcessPerspective12/10/202525UTABBSCPAPER9D-2002WI.PPTABalancedScorecardreflectsallthedefinedKPIsthataffecthowwelltheUnitisdoingROCEShareofturn-overbynewproductsIncreaseofdividendCustomersatisfactionindexPrice-basketRatioofsalestonewandalreadyexistingcustomersadditionalKPIsTurnoverperworkinghourTimetomarketNumberofdevelopment

partnershipswithcustomersadditionalKPIsadditionalKPIsadditionalKPIsMotivationindexTurnoverperworkinghouradditionalKPIsCustomerPerspectiveLearning&

InnovationPerspectiveInternal

ProcessesPerspectiveFinancePerspectiveWORKINGEXAMPLEKPI12/10/202526UTABBSCPAPER9D-2002WI.PPTProgressagainstTargetsforeachKPIisshownbythe

colourcodeKeepingthesystemsimpleandvisibleensuresthatthemajorityofeffortisspentoninvestigatingandaddressingopportunitiesratherthanonmeasures.PositiveLimitTargetNegativeLimitBlueGreenGreenRedGreenGreenGreenGreenAmberGreen - Resultson/aroundtarget,noactionrequiredAmber - Twoormoreresultsbetweentargetandnegativelimit,requiresclosemonitoringRed - Resultoutsidethenegativelimit,urgentactionrequiredtofixBlue - Resultoutsidethepositivelimit,willneedtoinvestigatewhy(morerealistictarget?)Ifperformancemovesoutsidetheagreedlimits,thelightcolourswillchangeandtheresponsiblepersonordepartmentcanthentakeappropriateaction+-t12/10/202527UTABBSCPAPER9D-2002WI.PPTAnotherPossibilityforVisualisationofaKPIKPI:CustomerSatisfactionIndexMeasureDefinition:%ontheAgreedIndexforTestofCustomerSatisfactionments:Thethreeplannedprocessimprovementwillleadtoincreasesincustomersatisfactionwhichwillreducethenumberofplaintsby30%.OnMarch,30ththerewillbeareviewoftheintermediateresults! Signature:Owner:Dept.LeaderX1234567891011121312345678910111213LastYearBudgetActual12345678910111213Budget+veTOLTarget-veTOLActualThisYear12345678910111213ActualBudgetTargetTolerances10%20%30%ItisaworkshopdrivenprocesstofindthebestBalancedScorecarddesignforthespecificUTABneeds.AndtomirroritinasimplebuteffectiveITTool(e.g.MSAccessdatabase)!12/10/202528UTABBSCPAPER9D-2002WI.PPTAfterImplementationtheBalancedScorecardwasapowerfulTooltotranslateStrategyintoBusinessPlans,BudgetsandDailyWorkTop

ManagementLevelDepartmentsBusinessUnitsFunctionsReview,AssessmentandmunicationoftheStrategyDevelopmentofmarketstrategiesandfunctionalstrategiesAssessment,AdoptionandmunicationoftheStrategyAcceptanceandTake-overoftheStrategyonallLevelsUseofBSCforpersonalcontrollinganddevelopmentofbudgetplansUseofBSCfordepartmentcontrollingandAssessmentsofBusinessPlansReviewandAssessmentofmid-rangeperspectivesoftheBusinessUnitsDecisiononannualobjectivesfortheBusinessUnitsGenerationofBudgetplansonthefunctionallevelAssessmentofthebudgetsoftheBusinessUnitsReviewandAssessmentof1-2annualbudgets12/10/202529UTABBSCPAPER9D-2002WI.PPT1TheBalancedScorecardConceptDesigningtheBalancedScorecardImplementingthe

BalancedScorecard2BalancedScorecardExample3ProjectApproachandProjectPlan4Summary5References6NextSteps

Contents12/10/202530UTABBSCPAPER9D-2002WI.PPTTheBalancedScorecardwillbedevelopedinfivedistinctphasesProjectphasesDevelopMSAccessdatabasePhase5Cascadedownanddevelopsub-

departmental

ScorecardsPhase4CascadedownanddevelopBalancedScorecardsforallUTABdepartmentsPhase3SettheobjectivesFindconsistent,

meaningful

KPIsDeterminerealisticbutchallengingtargetfiguresPhase2Phase1ReviewstrategyinseniorexecutiveinterviewsAgreeonstrategicobjectivesImplementationplanning12/10/202531UTABBSCPAPER9D-2002WI.PPTEachprojectphasewilldeliveraspecificoutputMSAccessdatabasetomanageBalancedScorecardsonalllevelswithobjectivesmeasurestarget

figuresPhase5ProjectoutputfinishedBalancedScorecards

forallUTABSub-departmentsconsistingof:objectivesKPItarget

figuresPhase4finishedBalancedScorecards

forallUTABdepartmentsconsistingof:objectivesKPItarget

figuresPhase3Strategicobjectivesconsistent,

meaningful

KPIstargetfiguresfinishedTopBalancedScorecardPhase2CurrentstrategyobjectivesWorkplanPhase1Implementationplanfocusingon:reportingprocessforusingtheScorecardsallocationofrolesandresponsibilitiesdevelopmentofactualmeasuresand

activitiesreviewoftheScorecards(continuous

managementcycle)12/10/202532UTABBSCPAPER9D-2002WI.PPTBSCManagementProcessDailyworkwithBSCsProjectPlanEstimationofTimeandEffortStrategyreview

&

agreementVision,Mission,Targets

withCXOs&fewothersKeywordsActivitiesObjectivesdetermination

KPI&TopSCdevelopmentUTABknowledgerequired,datamining,consistency...TargetfigurestobesetTopScorecardfinished,nowtobecascadeddownMSAccessdatabaseDesign,Creation,Testing,Implementation,AdoptionOptional:BoardPresentationViennaorHagforsStrategyReviewProcessReportingoutofBSCs,quarterlystrategyreviewCascading

“Dept.

layerBSC”Result:departmentalBSCCascading“Sub-dept.layer”Hothousingattempt=changeagentscascade...1234567891011121314151617181920weeksJustsupportedbyCGEY=workshop(normally½day)or

approvalmeeting(1-2hours)Workshopsinallinvolveddepartments12345

12/10/202533UTABBSCPAPER9D-2002WI.PPT1TheBalancedScorecardConceptDesigningtheBalancedScorecardImplementingthe

BalancedScorecard2BalancedScorecardExample3ProjectApproachandProjectPlan4Summary5References6NextSteps

Contents12/10/202534UTABBSCPAPER9D-2002WI.PPTTheBalancedScorecardlinksStrategywithExecutionClearResponsibilitiesandaconstantMeasurementoftheResultsarecrucial.

ImplementationoftheStrategyTopDownBottom

UpExecution,MeasurementofResults,&continuousFeedbackStrategyExecutionExecutionExecutionThesimultaneousTop-downundBottom-upAttemptguaranteestheMobilisationofallEmployees.Everyone'sInvolvementintheBSC-DesignisofthesameImportanceastheactualBSC!12/10/202535UTABBSCPAPER9D-2002WI.PPTThefundamentalpremiseisthat“measuringtherightthings”motivatespeople“todotherightthings”!!!!ThewayaBalancedScorecardworks“ALLFITTOGETHER”ClearobjectivesonalllevelsThisiswhatwecareabout.Thisishowwemeasureit.Thisishowitfitstogether.Understandingofthestra-tegyintheentirepanyNowIknowwherewego.Thismakessense.Thisismycontribution.ChangingthebehaviourThisisexpectedfromme.ThisIwillbemeasuredagainst.ThisIwillberewardedfor....THISIDO!12/10/202536UTABBSCPAPER9D-2002WI.PPTBalancedScorecardWorkshopDepartmentHeadRelevantEmployeesFacilitatorBasedontheTop-BSCtheEmployeesmeetinWorkshopstodesignthedepartmentalBSCsInanalogythiswillbedoneforthesub-departmentalleveleither.Herethedepartmentheadwillactasfacilitator.TypicalProcedureIntroductionPresentationandDiscussionontheObjectivesoftheTop-BalancedScorecardIdentificationofthe(departmentspecific)FactorsinfluencingtheoverallObjectivesWhatdoesthedepartmentcontributetothepanyobjectives(today/infuture)?Whatarethemaindrivers?DeterminationofthedepartmentalObjectivesbasedontheMainDriversDeterminationofthedepartmentalKPIsandTargetfiguresDeductionofActivitiesandResponsibilitiesDeterminationoftheNextSteps12/10/202537UTABBSCPAPER9D-2002WI.PPTTheResultaredepartmentalandsub-departmentalBalancedScorecardswithaclearReferencetotheTop-BSCTheInputofallDepartments,Sub-DepartmentsandEmployeesontheAchievementofObjectiveswillbevisible.Depart-mentalBSC:FinancialPerspectiveExample:FinancialPerspectiveofTop-BSCTOP-BSC:FinancialPerspectiveExample:FinancialPerspectiveofacertainDepartmentObjectivesKPITargetfiguresCostefficiencyIncreaseofTurnover...DBperm2TurnoverperQ...+30%until03+30%until03...ObjectivesShareholdervalueGrowthCapitalefficiency12/10/202538UTABBSCPAPER9D-2002WI.PPTTheBalancedScorecardisboth,anInstrumenttoImplementtheStrategyandanInstrumenttoMeasuretheResultsAnalysisofStatusquoStrategicScenariosStrategyDevelopmentProcess(quarterly,annual)ManagementProcess(weekly,monthly)BalancedScorecardMeasurementofResults&

continuousFeedbackImplementationoftheStrategy

DefinitionofStrategyTop

DownBottom

UpGap-AnalysisWherearewetoday?Whataretheprioritiesinclosinggaps?Whataretheobjectives?

Whentobemet?ObjectivesKPIdefinitionHowtodefine/balancemeasurementcategories?ImprovementsHowtoclosethegaps?Plan/ActualparisonHowdidweperformparedtoplan?FinancialPerspectiveVision/

StrategyCustomerPerspectiveLearn&InnovationPerspectiveInternalProcessPerspective12/10/202539UTABBSCPAPER9D-2002WI.PPTWhatisagoodBalancedScorecard?

CriteriaforagoodBalancedScorecard1.CauseandEffectRelationshipsEveryobjectiveselectedshallbepartofachainofcauseandeffectthatrepresentsthe