Through
Balance Scorecard
Paramjit Sharma
Organization Organization Organization Organization
2 tasks
Building Using
Scorecard Scorecard
Paramjit Sharma
Perspectives Generic Measures
Building
Scorecard
Return on Investment,
Financial Economic value Added
Paramjit Sharma
Financial Perspective
Paramjit Sharma
Linking Financial Objectives to Business Unit Strategy
3 Stages
Growth
Sustain
Harvest
Paramjit Sharma
Growth
Paramjit Sharma
Sustain
Stage
Attract investments
Required extra return
Maintain existing markets
Growth is expected
Enhancing improvements
Profitability
Return on Investment
Economic Value Added
Paramjit Sharma
Harvest
Stage
Maturity phase
Enough to maintain
equipments
No expansion
New invest with Short
Pay Back
Maximize Cash flow
Reduction in WC Requirements
Paramjit Sharma
Strategic Theme for the Financial Perspective
Paramjit Sharma
Strategic Theme for the Financial Perspective
•Sales Growth
•Market Share
•Revenue From New Products
Services &
Customers
Paramjit Sharma
Strategic Theme
Cost Reduction
Revenue Growth Asset
Productivity
And Mix Utilization
Improvement
Growth
Sales Growth rate by
Segment, Percentage Investment(% Of Sales)
Revenue from new Revenue/Employee R & D (% of Sales)
Products, services…
Business Unit Strategy
Share of Targeted
Customers WC Ratios
Cost versus Competitors (Cash to Cash Cycle)
Cross Selling
Sustain
Cost rates
% Revenue from new ROCE
Application Indirect Expenses
( % of Sales) Assets Utilization
Customer & Product line
Profitability Rates
Harvest
Customer & Product line
Unit Costs Payback
Profitability
(Per unit of output
% Unprofitable Customers Per transaction) Throughput
Paramjit Sharma
Strategic Theme for the Financial Perspective
New Product/Service
•% Revenue Increase
Paramjit Sharma
Strategic Theme for the Financial Perspective
New Application
Paramjit Sharma
Strategic Theme for the Financial Perspective
Paramjit Sharma
Strategic Theme for the Financial Perspective
New Relationship
Paramjit Sharma
Strategic Theme for the Financial Perspective
Paramjit Sharma
Strategic Theme for the Financial Perspective
Paramjit Sharma
Strategic Theme for the Financial Perspective
Cost Reduction/Productivity
Improvement
Increase Revenue
Productivity
Paramjit Sharma
Strategic Theme for the Financial Perspective
Cost Reduction/Productivity
Improvement
Paramjit Sharma
Strategic Theme for the Financial Perspective
Cost Reduction/Productivity
Improvement
Improve Channel
Mix
Paramjit Sharma
Strategic Theme for the Financial Perspective
Cost Reduction/Productivity
Improvement
Reduce Operating
Expenses
Paramjit Sharma
Strategic Theme for the Financial Perspective
Asset Utilization
Investment
Strategy
Paramjit Sharma
Strategic Theme for the Financial Perspective
Asset Utilization
Investment
Strategy
Improve
Asset
Utilization
Paramjit Sharma
Questions
Paramjit Sharma