Balanced Scorecard

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Q.1 What is the Balanced Scorecard?

Balanced Scorecard is a framework that aims on shareholder/financial, customer, internal processes and learning requirements of a business in order to create a system of linked objectives, measures, targets and initiatives which collectively describe the strategy of an organization and how that strategy can be achieved.

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Q.2 What are the benefits of the Balanced Scorecard?

1. Clearly communicates the vision and strategy across the organization. 2. Enables tracking of strategy implementation, with monthly/periodic reporting. 3. Streamlines initiatives and aligns them with major objectives. 4. Provides focus for the executive teams, clarifies roles and breaks down functional silos. 5. Streamlines and simplifies the strategic planning process. 6. Drives resources allocation and budgeting process. 7. Improves rewards system by linking measures to compensation.

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Q.3 What are the applications of Balanced Scorecard?

1. Strategy implementation at the Corporate Level 2. Alignment of units / departments strategy with the Corporate Strategy 3. Post Merger integration 4. Joint venture and alliances 5. IT’S Strategy 6. HR Strategy, and rewards alignment 7. Budgeting and resources allocation 8. Initiatives management

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Q.4 What is a Strategy Map?

Strategy map is a visual representation of the organization’s strategy. It identifies the strategic objectives that the management team needs to focus on, and the linkages that exist between them.

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Q.5 How long does it take to develop the Balanced Scorecard?

A Corporate scorecard takes around 8 weeks to be developed.

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Q.6 What is the role of a Scorecard Coordinator?

1. Receiving all relevant actual for the measures each month from individuals with reporting responsibilities. 2. Receiving update on status of all initiatives from the individual project managers. 3. Integrating all information into the Balanced Scorecard, initiatives Master Plan and Master Schedule each month. 4. Analyzing data to create agenda / key messages for each BSC meetings. 5. Identify strategic issues for each month. 6. Managing calendar of BSC meeting.

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Q.7 What type of organizations implement Balanced Scorecard?

1. Large, medium and small businesses to ensure achievement of revenue / profit objective for its shareholders. 2. Non-profit organizations, to enable delivery of its social objectives, based on the availability of limited resources. 3. Government organizations / departments to enable delivery to the public / community.

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Q.8 What are the challenges in implementing the Scorecard?

There are a number of challenges in ensuring the successful implementation of the scorecard. However, the key one is lack of senior management commitment.

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Q.9 Should we implement IT software to report the Scorecard?

It is not completely necessary, but it is beneficial to implement an IT solution to automate reporting of the scorecard. It simplifies the process of physically compiling the data. However, only data available on the legacy/ERP system can be captured from the system.

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Q.10 Who are the authors of the Balanced Scorecard?

The idea was first suggested in the early 1990s by Drs. Robert Kaplan and David Norton.

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Q.11 Who use Balanced scorecard?

Any organization has a strategy, even small businesses and individuals, so with some modifications the Balanced Scorecard can be used by any organization, including non-profits. According to a study by Gartner Group, over 50% of large organizations have adopted the Balanced Scorecard.

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Q.12 What are the key principles of the Balanced Scorecard?

1. Cause-and-effect relationship between objectives. 2. Showing how customer value is created and how it is linked to the organization’s goals. 3. Aligning measures and initiatives with objectives.

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Q.13 What is the Balanced Scorecard process?

It varies from business to business and from consultant to consultant. Recommend for strategy execution in general, and for the Balanced Scorecard in particular.

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Q.14 Do we need software to work with the Balanced Scorecard?

Yes, Otherwise you are at risk to spend more time on the design and might face motivation problems

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Q.15 What does Balanced Scorecard cascading mean?

The idea of cascading is about translating top level objectives down to the lower levels. The key idea is that cascading is done by business goals, not by KPIs. Here you will find examples of some typical approaches to the cascading.

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Q.16 How to use Balanced Scorecard for business?

There are no specific rules for specific business niches. The guiding ideas that strategists use for a retail company are similar to the ideas that one will use for a hotel business. Still, having some examples is always a good idea.

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Q.17 What are the 5 dimensions of the business environment?

(A) Legal Environment. (B) Political Environment. (C) Economic Environment. (D) Social Environment. (E) Technological Environment.

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Q.18 What do you mean by dimensions of business?

Business dimensions describe the business-specific objects within the model, such as products, customers, regions, employees, and so on.

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Q.19 Who make the dimensions of business?

These dimensions and members are created in Performance Management Architect.

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Q.20 What are business functions?

Businesses regardless of their type, size or financial position they all consist of three basic functions that run the business. Those three functions are operations, finance and marketing.

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Q.21 Who is father of strategic management?

Igor Ansoff, the father of strategic management.

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Q.22 What are the 5 P's of strategy?

1. Plan. 2. Ploy. 3. Pattern. 4. Position. 5. Perspective.

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Q.23 List the features of Strategy?

1. Specialized plan to outperform the competitors. 2. Details about how managers must respond to any change in the business environment. 3. Redefines direction towards common goals. 4. Reflects the concern to effectively mobilize resources. 5. Maximizes the organization's chances to achieve the set objectives.

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Q.24 What are the four basic elements of strategic management?

The strategic management process is made up of four elements: situation analysis, strategy formulation, strategy implementation, and strategy evaluation.

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Q.25 What are the types of strategy?

1. Business strategy. 2. Operational strategy. 3. Transformational strategy.

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Q.26 What is the difference between strategy and tactics in a negotiation?

Tactics refer to the actions that each party involved in the negotiation process run in order to achieve their goals. While strategies are characterized by intervening as a general line of action, tactics are the set of actions which specify that strategy.

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Q.27 What is Decision Making?

Decision making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

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Q.28 What are the 7 steps of decision-making?

1. Identify the decision. 2. Gather relevant info. 3. Identify the alternatives. 4. Weigh the evidence. 5. Choose among the alternatives. 6. Take action. 7. Review your decision.

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Q.29 What are the Balance Scorecard Perspectives?

The four perspectives of a traditional balanced scorecard are Financial, Customer, Internal Process, and Learning and Growth.

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Q.30 What are the four components of balanced scorecard?

The balanced scorecard involves measuring four main aspects of a business: Learning and growth, business processes, customers, and finance.

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Q.31 What is PESTLE analysis?

A PESTLE analysis is a framework to analyse the key factors like Political, Economic, Sociological, Technological, Legal and Environmental influencing an organisation from the outside.

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Q.32 What are the six elements of PESTLE?

In particular, PESTEL reflects the names of the six segments of the general environment: (1) political, (2) economic, (3) social, (4) technological, (5) environmental, and (6) legal.

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Q.33 What is SWOT analysis?

A SWOT analysis organizes your top strengths, weaknesses, opportunities, and threats into an organized list and is usually presented in a simple two-by-two grid.

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Q.34 Explain Value Chain Analysis?

Value chain analysis is defined as the process of looking at the activities that go into changing the inputs for a product or service into an output that is valued by the customer.

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Q.35 What are the 5 primary activities of a value chain?

The primary activities of Michael Porter's value chain are inbound logistics, operations, outbound logistics, marketing and sales, and service.

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Q.36 What are the types of value chain?

1. Market. 2. Modular. 3. Relational. 4. Captive. 5. Hierarchy.

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Q.37 What is Competitor Analysis?

Competitive analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors.

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Q.38 What are the 3 types of competitors?

There are three types to consider: direct, indirect, and replacement.

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Q.39 What are the key elements of a strategic vision?

1. Vision. 2. Values. 3. Clearly Defined Outcomes. 4. Accountability. 5. KPIs.

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Q.40 How do you describe a strategy map?

A strategy map is a visual representation of an organization's overall objectives and how they relate to one another.

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Q.41 How do you measure KPI?

The most common tool for tracking KPIs is web analytics.

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Q.42 What are KPI tools?

KPI tools are a business reporting solution used by companies to track, monitor, and generate actionable insights from key performance indicators specific to company's business objectives.

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Q.43 What are the 3 different kinds of indicators?

There are three types of economic indicators: leading, lagging and coincident.

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Q.44 What are different types of CRM?

1. Strategic CRM. 2. Operational CRM. 3. Analytical CRM. 4. Collaborative CRM.

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Q.45 What is a CRM tool?

A CRM tool lets you store customer and prospect contact information, identify sales opportunities, record service issues, and manage marketing campaigns, all in one central location.

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Q.46 Explain Strategic CRM?

Strategic CRM is a type of CRM in which the business puts the customers first. It collects, segregates, and applies information about customers and market trends to come up with better value proposition for the customer.

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Q.47 Explain Operational CRM?

Operational CRM is oriented towards customer-centric business processes such as marketing, selling, and services. It includes the following automations: Sales Force Automation, Marketing Automation, and Service Automation.

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Q.48 What does Marketing Automation includes?

Marketing automation involves market segmentation, campaigns management, event-based marketing, and promotions. The campaign modules of Marketing Automation enable the marketing force to access customer-related data for designing, executing and evaluating targeted offers, and communications.

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Q.49 What is process mapping used for?

Process mapping is used9 to identify all the steps and decisions of an existing process in diagrammatic form, which helps organisations identify improvement opportunities so that they can improve efficiency within an organisation.

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Q.50 What are the 3 types of processes?

1. Operational process. 2. Supporting process. 3. Management process.

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