Lesson-9-Balanced-Scoredcard-英文管理会计课件-Management-A.ppt（纯ppt,可能不含音视频素材）

1、1Balanced Scorecard LESSON92Introduction of lesson 9ties all previous lessons together into a method for facilitating decision making and performance evaluation.focus on the Balanced Scorecard as a management tool for the implementation of a companys chosen strategy.learn about the Balanced Scorecar

2、d approach to gathering financial and nonfinancial information,and how to apply the resulting scores in strategic decision making.use the Balanced Scorecard to create solutions to performance evaluation deficiencies in a given business situation based on a specific strategic focus.3Lesson 9 Topics o

3、utline1.Implementation of strategy and the Balanced Scorecard2.Evaluating success of a strategy3.Strategic analysis of operating income4.Downsizing and management of capacity5.Productivity measurement4Topic 1:Implementation of strategyand the Balanced ScorecardLEARNING OBJECTIVE Design a Balanced Sc

4、orecard appropriate to the generic strategy of an organization.Required readingChapter 13,pages 354-365,up to“Evaluating the Success of Strategy and Implementation”5 Implementation of strategy and the Balanced ScorecardThe balanced scorecard translates an organizations mission and strategy into a se

5、t of performance measures that provides the framework for implementing its strategyIt is called the balanced scorecard because it balances the use of financial and nonfinancial performance measures to evaluate performanceMany companies have introduced a Balanced Scorecard to manage the implementatio

6、n of their strategiesTopic 1:Implementation of strategy and the Balanced Scorecard6The Balanced Scorecard:FromStrategy to Performance MeasuresExh.10-11FinancialHas our financialperformance improved?CustomerDo customers recognize thatwe are delivering more value?Internal Business ProcessesHave we imp

7、roved key business processes so that we can deliver more value to customers?Learning and GrowthAre we maintaining our abilityto change and improve?Performance MeasuresWhat are ourfinancial goals?What customers dowe want to serve andhow are we going towin and retain them?What internal busi-ness proce

8、sses arecritical to providingvalue to customers?Vision and StrategyTopic 1:Implementation of strategy and the Balanced Scorecard7The Financial PerspectiveEvaluates the profitability of a strategy from growth in the revenue streams or reduction of costs,and uses the most objective measures in the sco

9、recard such as return on capital employed,operating income,and revenue growth.The other three perspectives eventually feed back into this dimensionTopic 1:Implementation of strategy and the Balanced Scorecard8 nonfinancial measuresWhy we need nonfinancial measures?Non-financial measures are leading

10、indicators of future financial performance.Financial measures are lag indicators that summarize the results of past actions.The use of financial measures to evaluate an organization can lead to suboptimal decisionsNon-financial measures are more likely to be understood and controlled by lower level

11、managers.Top managers are ordinarily responsible for financial performance measures.Topic 1:Implementation of strategy and the Balanced Scorecard9The Customer PerspectiveIdentifies targeted customer and market segments and measures the companys success in these segmentsEvaluates whether the company

12、is achieving success in meeting customer needs through identifying a customer value proposition(that is,by answering the question,“who are we to the customer?”),and utilizes measures such as customer satisfaction,number of new customers,increase in market share,and so on.Topic 1:Implementation of st

13、rategy and the Balanced Scorecard10The Internal Business ProspectiveFocuses on internal operations that create value for customers that,in turn,furthers the financial perspective by increasing shareholder valueEvaluates the effectiveness and efficiency of managing the internal operations or value ch

14、ain.It focuses on three principle sub-processes:innovation,operations,and post-sales service.Topic 1:Implementation of strategy and the Balanced Scorecard11The Learning&Growth PerspectiveEvaluates the capabilities the organization must excel to achieve superior internal processes that create value f

15、or both shareholders and customers.Topic 1:Implementation of strategy and the Balanced Scorecard12The Learning&Growth Perspective Learning and growth emphasizes the following four factors:1.Goal congruence,measured by satisfaction ratings2.Skill/process development,measured by the percentage of empl

16、oyees trained3.Workforce empowerment,measured by the percentage of line workers making management decisions4.Enhanced information system capabilities,measured by the percentage of processes with real-time feedbackTopic 1:Implementation of strategy and the Balanced Scorecard13The Balanced scorecardWi

17、thin each perspective,objectives are identified which would contribute to attaining goalsExamples A customer perspective objective might be to increase the percentage of customers who would recommend the product to a friend A learning and growthobjective might be to increasethe number of cross-train

18、ed employeesTopic 1:Implementation of strategy and the Balanced Scorecard14The Balanced scorecardGo to EXHIBIT 9-1:BSC Objectives,Measures,and InitiativesGo to EXHIBIT 9-2:examples of typical types of balanced scorecard measures in each perspective.Topic 1:Implementation of strategy and the Balanced

19、 Scorecard15The balanced scorecard lays out concrete actions to attain desired outcomes.A balanced scorecard should have measuresthat are linked together on a cause-and-effect basis.If we improveone performancemeasure.Another desiredperformance measurewill improve.The Balanced ScorecardThenTopic 1:I

20、mplementation of strategy and the Balanced Scorecard16major benefit of BSCA major benefit of BSC:it promotes causal thinkingReengineeringtraining required to implement the reengineeringTopic 1:Implementation of strategy and the Balanced Scorecard17The Balanced scorecardObjectives are linked across p

21、erspectives in order to achieve company goals Financial objectives are normally set first,the objectives from the other perspectives are set in orderto accomplish the financial objectivesTopic 1:Implementation of strategy and the Balanced Scorecard18The Balanced Scorecard FlowchartTopic 1:Implementa

22、tion of strategy and the Balanced Scorecard19Strategy map20The Balanced ScorecardJaguar Example Employee skills in installing optionsNumber ofoptions availableTime toinstall optionCustomer satisfactionwith optionsNumber of cars soldContribution per carProfitLearningand GrowthInternal Business Proces

23、sesCustomerFinancialExh.10-13Topic 1:Implementation of strategy and the Balanced Scorecard21The Balanced ScorecardJaguar Example Employee skills in installing optionsNumber ofoptions availableTime toinstall optionCustomer satisfactionwith optionsNumber of cars soldContribution per carProfitIncrease

24、OptionsTimeDecreasesStrategiesSatisfaction IncreasesIncrease SkillsResultsTopic 1:Implementation of strategy and the Balanced Scorecard22Employee skills in installing optionsNumber ofoptions availableTime toinstall optionCustomer satisfactionwith optionsNumber of cars soldContribution per carProfitI

25、ncrease OptionsStrategiesSatisfaction IncreasesResultsCars sold IncreaseThe Balanced ScorecardJaguar Example Topic 1:Implementation of strategy and the Balanced Scorecard23Employee skills in installing optionsNumber ofoptions availableTime toinstall optionCustomer satisfactionwith optionsNumber of c

26、ars soldContribution per carProfitStrategiesResultsThe Balanced ScorecardJaguar Example TimeDecreasesIncrease SkillsContributionIncreasesTopic 1:Implementation of strategy and the Balanced Scorecard24The Balanced ScorecardJaguar Example Employee skills in installing optionsNumber ofoptions available

27、Time toinstall optionCustomer satisfactionwith optionsNumber of cars soldContribution per carProfitResultsTimeDecreasesIncrease SkillsContributionIncreasesProfitsIncreaseIf numberof cars soldand contributionper car increase,profits increase.Increase OptionsStrategiesSatisfaction IncreasesTopic 1:Imp

28、lementation of strategy and the Balanced Scorecard25Advantages of Graphic FeedbackWhen interpreting its performance,Jaguar will look forcontinual improvement.It is easier to spot trends or unusual performance if this data is presented graphically.Time to Install an Option0510152025303512345678910Wee

29、kTime to Install in MinutesTopic 1:Implementation of strategy and the Balanced Scorecard26Topic 2:Evaluating success of astrategyLEARNING OBJECTIVES Evaluate the success of a strategy using the stoplight system.Required reading Chapter 13,pages 365-366,“Evaluating the Success of Strategy and Impleme

30、ntation”27The Balanced scorecardIt forces a business to consider its critical success factors,and to identify business objectives.It forces a company to consider the range of activities and results that lead to success,not just short-term financial ones.If designed well,such a system can be clearly

31、understood and adaptable to changing conditions.It is less subject to manipulation.Topic 2:Evaluating success of a strategy28The Balanced scorecardImplementing a Balanced Scorecard is not an easy task.It requires managers to develop a clear vision of the organization and a strategic plan,to translat

32、e the plan into action,and to develop a Balanced Scorecard.Topic 2:Evaluating success of a strategy29Implementing a Balanced ScorecardMust have commitment and leadership from top managementMust be communicated to all employeesTopic 2:Evaluating success of a strategy30The Balanced Scorecardand Compen

33、sation Incentive compensation should be linked to balanced scorecard performance measures.Topic 2:Evaluating success of a strategy31Steps of implementing BSCTopic 2:Evaluating success of a strategy32Features of a Good Balanced ScorecardTells the story of a firms strategy,articulating a sequence of c

34、ause-and-effect relationships:the links among the various perspectives that describe how strategy will be implementedHelps communicate the strategy to all members of the organization by translating the strategy into a coherent and linked set of understandable and measurable operational targetsTopic

35、2:Evaluating success of a strategy33Features of a Good Balanced ScorecardMust motivate managers to take actions that eventually result in improvements in financial performance Predominately applies to for-profit entities,but has some application to not-for-profit entities as wellLimits the number of

36、 measures,identifying only the most critical onesHighlights less-than-optimal tradeoffs that managers may make when they fail to consider operational and financial measures togetherTopic 2:Evaluating success of a strategy34Balanced Scorecard Implementation PitfallsManagers should not assume the caus

37、e-and-effect linkages are precise:they are merely hypothesesManagers should not seek improvements across all of the measures all of the timeManagers should not use only objective measures:subjective measures are important as wellTopic 2:Evaluating success of a strategy35Balanced Scorecard Implementa

38、tion PitfallsManagers must include both costs and benefits of initiatives placed in the balanced scorecard:costs are often overlookedManagers should not ignore nonfinancial measures when evaluating employeesManagers should not use too many measuresTopic 2:Evaluating success of a strategy36Evaluating

39、 success of a strategy Managers can compare the Balanced Scorecard to actual results using the target stoplight system.stoplight system:used to compare the balanced scorecard to actual results.Topic 2:Evaluating success of a strategy37stoplight systemThe target is broken into three categories:green-

40、light(acceptable)represents results that meet expectations,yellow-light represents results slightly below the desired targetred-light represents results below the desired targetGo to EXAMPLE 9.1Topic 2:Evaluating success of a strategy38stoplight systemGo to EXAMPLE 9.1Topic 2:Evaluating success of a

41、 strategy39Topic 3:Strategic analysis ofoperating incomeLEARNING OBJECTIVEEvaluate change in operating income resulting from implementation of strategic components:growth,product differentiation,and cost leadership or productivity.Required readingChapter 13,pages 366-373,from“Strategic Analysis of O

42、perating Income”up to“Downsizing and The Management of Capacity”40Strategic analysis of operating income For evaluating implementation of cost leadership,product differentiation,and growth strategies,managers can use a strategic analysis of operating income over a minimum of two years.Strategic Anal

43、ysis of Operating Income three parts:1.Growth Component 2.Price-Recovery Component3.Productivity ComponentTopic 3:Strategic analysis of operating income411.Growth Component Growth Component measures the change in operating income attributable solely to the change in the quantity of output sold betwe

44、en the current and prior periods.Topic 3:Strategic analysis of operating income421.Growth Component Revenue Effect of GrowthTopic 3:Strategic analysis of operating incomeCost Effect of Growth for Variable Costs Prior Prior 43Cost Effect of Growth for Fixed CostsAssuming Adequate Current Capacity:Ass

45、uming Inadequate Current Capacity:Topic 3:Strategic analysis of operating income442.Price-Recovery Component Price-Recovery Component measures the change in operating income attributable solely to changes in prices of inputs and outputs between the current and prior periodsTopic 3:Strategic analysis

46、 of operating income452.Price-Recovery Component Revenue Effect of price recoveryTopic 3:Strategic analysis of operating incomeCost Effect of price recovery46Cost Effect of Price RecoveryFixed Costs with Adequate CapacityFixed Costs without Adequate CapacityTopic 3:Strategic analysis of operating in

47、come473.Productivity Component Productivity Component measures the change in costs attributable to a change in the quantity of inputs between the current and prior periodsCost Effect of Productivity for Variable CostsTopic 3:Strategic analysis of operating income48Cost Effect of Productivity for Fix

48、ed CostsWith Adequate CapacityWithout Adequate CapacityTopic 3:Strategic analysis of operating income49Strategic Analysis of Profitability IllustratedTopic 3:Strategic analysis of operating income50Further Analysis:Illustrated The effect of the industry-market-size factor on operating income The eff

49、ect of product differentiation on operating income The effect of cost leadership on operating income Topic 3:Strategic analysis of operating income51Topic 4:Downsizing andmanagement of capacityLEARNING OBJECTIVEIdentify unused capacity,and design recommendations to deal with that capacity.Required r

50、eadingChapter 13,pages 373-377,from“Downsizing and the Management of Capacity”up to“Problem for Self Study”52Unused Capacity Unused Capacity is the amount of productive capacity available over and above the productive capacity employed to meet consumer demand in the current periodManagers can reduce