Balanced Scorecard New Technique in BABoK 3.0.

Business Analyse Camp

Wien, 09.05.2014

DI Mag Jörg Rainer, MBA, CBAP

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Measurement – Gap between appearance and reality

Measurement – Do we need it?

Es ist eigentlich merkwürdig, daß die Menschen meist

taub sind gegenüber den stärksten Argumenten, während

sie stets dazu neigen, Meßgenauigkeiten zu

überschätzen.

(Albert Einstein)

What you can measure, you can manage

(Anonymous)

Measurement - Operational Definition

Criteria are

fulfi l led

term is

appliedImplication

observational

langauge

theoretical

language

Measurement - Quality

• Validity:

Does the measure really measure what it intends to measure?

Do the criteria cover all dimensions of the concept?

• Reliability:

Does the measure yield the same results when applied at different times?

Do different measures of the same thing yield to consistent results?

Knowledge, Skills, Systems, and Tools

Financial Results

To Build the Strategic Capabilities..

Needed to Deliver Unique Sets of Benefits to Customers...

To Drive Financial Success...

And Realize the Vision

Equip our People...

Internal

Capabilities

Customer Benefits

Articulate Strategic Hypotheses in Cause-effect Terms

Objectives

Fast ground

turnaround

Statement of

what strategy

must achieve

and what’s

critical to its

success

Target

30 Minutes

90%

The level of

performance or

rate of

improvement

needed

Cycle time

optimization

Key action

programs

required to

achieve

objectives

Initiative Measurement

On Ground Time

On-Time

Departure

How success in

achieving the

strategy will be

measured and

tracked

Strategic Theme:

Operating Efficiency

Profitability Financial

Learning

More customers

Ground crew alignment

Lowest prices

Fewer planes

Customer

Internal

Fast ground turnaround

Strategy Map: Diagram of the

cause-and-effect relationships

between strategic objectives

Flight Is on time

BSC Terminology

www.worldofhr.com/Balance%20Score%20Card.ppt

Double Loop Learning Process

[Kaplan00b] p. 275

Organizational Break Down

• Starting on top level

• Each department creates it‘s own BSC. „What can we contribute?“

• Each program/project creates it‘s own BSC. „What can we contribute?“

• Personal MBOs are alligned to BSC

• „What can I contribute?“

Why a Balanced Scorecard

• The Balanced Scorecard is a good communication instrument

– To keep top management on board

– To allign department strategy to corporate strategy

– To allign personal activities (MBOs)

• The Balanced Scorecard increases ability to react quickly on operational level

• Try to falsify your strategy map. Let rotate the strategic learning loop

Stragety maps can be used also/even for less important things!

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Thank you!

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