Objectives

Upon completion of this course, participants will be able to:

• Explain the core concepts and historical development of the Balanced Scorecard framework.
• Develop a clear **Strategy Map** that visually links strategic objectives across four perspectives.
• Define measurable Key Performance Indicators (KPIs) for each strategic objective.
• Establish targets and initiatives that drive performance improvement.
• Understand the four standard BSC perspectives: Financial, Customer, Internal Process, and Learning & Growth.
• Design a comprehensive BSC system, from strategic planning to implementation and monitoring.
• Cascade the BSC from the corporate level down to business unit and individual performance scorecards.
• Utilize the BSC framework to facilitate strategic conversations and decision-making.
• Identify common pitfalls in BSC implementation and strategies to overcome them.
• Integrate the BSC with the budgeting process and incentive compensation schemes.

Target Audience

• Strategy and Planning Executives and Managers
• Performance Management and Business Intelligence Specialists
• Financial Controllers and Chief Financial Officers (CFOs)
• HR Managers involved in performance and compensation design
• Department Heads and Business Unit Leaders
• Consultants specializing in strategy and business transformation
• Anyone responsible for monitoring and reporting organizational performance

• Interactive workshops on designing a Strategy Map for a fictional company
• Group activities defining and selecting KPIs for all four BSC perspectives
• Case studies illustrating successful and failed BSC implementations in various industries
• Role-playing scenarios for presenting BSC performance reviews to a management committee
• Discussions on the political and cultural challenges of performance measurement
• Individual exercises on linking a budget to specific BSC strategic initiatives

Unit 1: Fundamentals of the Balanced Scorecard

• The limitations of relying solely on financial measures for performance
• The origins and purpose of the Balanced Scorecard (Kaplan & Norton)
• The four perspectives: Financial, Customer, Internal Process, Learning & Growth
• Understanding cause-and-effect relationships across the perspectives
• The role of the BSC as a strategic management system, not just a measurement tool
• Overview of the six steps to building a successful BSC system

• Techniques for clarifying and articulating the organizational strategy
• Constructing the Strategy Map: the visual representation of cause-and-effect links
• Identifying the key strategic themes and hypotheses
• Using the Strategy Map to communicate strategy clearly to all employees
• Ensuring the map tells a cohesive "story" of how value is created
• Case studies of effective and ineffective Strategy Maps

Unit 2: Defining Measures, Targets, and Initiatives

• Criteria for selecting effective, measurable, and actionable KPIs
• Distinguishing between 'Lag' (outcome) and 'Lead' (driver) indicators
• Defining measures for each of the four BSC perspectives
• Techniques for operationalizing abstract strategic objectives into metrics
• Avoiding metric overload and focusing on critical few measures
• Data collection and validation methods for BSC metrics

• Establishing performance targets that are challenging yet achievable
• Benchmarking performance against competitors and best-in-class standards
• Developing **Strategic Initiatives** (projects) to close performance gaps
• Resource allocation and budgeting process linked to strategic initiatives
• Linking initiatives to specific strategic objectives on the Strategy Map
• Techniques for initiative prioritization and management

Unit 3: Implementation and Cascading the Scorecard

• Governance structure for the BSC: roles, responsibilities, and ownership
• Designing the BSC reporting and review cycle (e.g., monthly, quarterly)
• Technology solutions for automating BSC data collection and reporting
• Techniques for engaging employees and communicating the BSC effectively
• The use of dashboards and visual reporting for strategic intelligence
• Periodic review and adjustment of the corporate strategy and BSC

• The process of cascading the corporate BSC down to business units and departments
• Creating aligned, localized scorecards and metrics
• Linking individual performance goals and compensation to the departmental BSC
• Ensuring vertical and horizontal alignment across the entire organization
• Managing cross-functional dependencies and collaboration through the BSC
• Common challenges in scorecard alignment and how to overcome them

Unit 4: Integration and Advanced Applications

• Integrating the BSC with the annual budget and financial planning process
• Linking the BSC to Enterprise Risk Management (ERM) frameworks
• Using the BSC to drive resource allocation and capital expenditure decisions
• Integrating the BSC with quality management and process improvement methodologies
• The role of the BSC in corporate reporting and sustainability (ESG) frameworks
• Using the BSC to manage mergers, acquisitions, and restructuring efforts

• Facilitating strategic learning through the BSC review process
• Developing strategic reports that move beyond data to insight
• Conducting strategy "deep dives" and hypothesis testing with BSC data
• Using the BSC to inform and shape future strategic planning cycles
• Sustaining the BSC as a living, dynamic management system
• Advanced: Third-generation and fourth-generation BSC models