Introduction to the

Oracle
Balanced Scorecard
What is it?
Management process to implement a
business strategy.
Translates a companys strategy into a
coherent set of performance measures.
Establishes cause and effect relationships
between Key Performance Indicators.
Balanced Scorecard:
What is it?
I Manage into the
future not in the past
Balanced Scorecard:
II Implementing the
strategy requires
4 steps
Two
underlying
factors:
What is it?
I Manage into the
future not in the past
Balanced Scorecard:
The Financial perspective is critical but it only
measures past performance.
The BSC introduces additional perspectives,
the drivers of future financial performance.
Financial
Customer
Learning and
Growth
Internal
Process
Strategic Perspectives
Results that
the business
provides to
its
shareholders


Identifies
Customer, market
segments and
value propositions
to be delivered

Infrastructure,
people,
systems and
procedures.

Key internal
processes
which
drive the
business
Measures
organizational
performance
across four
balanced
perspectives:
Dynamic
BSC
Clarify and
translate
vision and
strategy
Communicate
and link strategic
objectives
and measures
Plan,
set targets,
and align
strategic
initiatives
Enhance
strategic
feedback and
learning
Performance Measurement Libraries
Minimize time to market
Accumulate Intellectual Capital
Dynamic Wizards
Structured Dynamic cascading
Multimedia Knowledge Base
Target Setting
Budget Guidelines
Budget/BSC Alignment
Virtual Meetings
Make the strategy operational
Competitive Intelligence
Best Practices Identification
Provides the framework for a strategic measurement and
management system
Balanced Scorecard
Long Term Objectives
Financials
Short Term Objectives
Other perspectives

Generic measures
Lag Indicators.

Performance drivers
Lead indicators
Balanced Scorecard
Establishes cause and effect relationships between
Key Performance Indicators (KPI):
Strategy =
Set of hypotheses about
cause and effect
Every measure in the BSC should be an element in a
chain of cause-and-effect relationships that
communicates the strategy.
KPIs - Cause & Effect Relationships
Learning
and Growth
Internal Business
Process
Customer Financial
Maximize
Profitability
Improve
Customer
Service
Technology
Infrastructure
New Products
& Service
Development
Reduce
Credit
Approval
Time
Minimize
Customer
Turnover
Cross
Selling
Maximize
Profitability
Improve
Customer
Service
Technology
Infrastructure
New Products
& Service
Development
Reduce
Credit
Approval
Time
Minimize
Customer
Turnover
Cross
Selling
Cause and effect relationships between Key
Performance Indicators (KPI)
KPIs - Cause & Effect Relationships
Fills the void that exists in the lack of a
systematic process to implement and obtain
feedback about strategy.
It is a communication and learning system not a
tool to control behavior and to evaluate past
performance.
Balanced Scorecard
Simplicity
Manage for the future not the past
Focus on Cause and Effect
relationships
System linked to the strategy
Action Oriented
Flexibility
BSC Key points: