ARAB BANK PLC

1
ARAB BANK PLC
The Balanced Scorecard
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• Amman - Jordan

June 2002
2
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????????? ? ????? ??????? ????? ???? ???????
????? ????? ?? ????????????? ????????.
3
????? ????????????Strategy Implementation

• ?? ????? 70 ?? ??? ??????? ???? ???? ?? ?????
  ???????????? ? ???? ???? ?? ???????????? ?????.
• (Fortune)

4
Barriers to Implementing Strategy
Only 10 of organizations execute their strategy
Barriers to strategy execution
Vision Barrier
People Barrier
Mgmnt. Barrier
Resource Barrier
Only 5 of the workforce understands the strategy
Only 25 of the managers have incentives linked
to strategy
85 of executive teams spend less than 1 hour per
month discussing strategy
60 of organizations dont link budgets strategy
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????? ??????? ?????????Balanced Scorecard

• ???? ????? 10 ?????.
• ?????? ??? ???? ???? ??? ?? ??????.
• ?????? ????? ????? ???????????? ??? ?????.
• ???? ??? ?????? ??? ??? ???? ??? ?????? ?????.
• 50 ?? ????? (Fortune 1000) ????????.
• ???? ???? ?????? ?? ??????? ??? ?????? ???????
  ???????? ????? ??????? ??? ??????? ??? ???? ????
  ???? ??????? ???????.

6
Benefits of Applying BSC

• Helps align key performance measures with
  strategy at all levels of an organization.
• Provides management with a comprehensive picture
  of business operations.
• The methodology facilitates communication and
  understanding of business goals and strategies at
  all levels of an organization.
• Provides strategic feedback learning.
• Helps reduce the vast amount of information the
  companys IT systems process into essentials.

7
????? ??????? ?????????

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  (18501980) ????? ???? ???? ??? ?????? ??????
  ??????? ??????????.
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  ???????? ? ??? ????
• ?????? ????? ??????.
• ?????? ????? ?? ??????????.
• ??? ??????????? ????? ???? ???? ??????? ???????
  ??? ???????? ????????? ?????? ??????? ????????
  ?????? ??? ?????? ???????? ??????? ????????
  ???????.

8
????? ??????? ????????? / ????

• ??? ???? ????? ????????? ?? ?? ????????
  ?????????
• ?????? ?????? ????? ????? ??????? ???? ???? ????
  ??? ????????? ?? ????????? ??????? ? ????? ?? ???
  ??? ?? ????????? ?????? ????? ?? ???????
  ?????????? ????????? ?? ??????? ????? ????
  ??????.
• ???? ???????? ??????? ?????? ?????? ???? ?????
  ??? ????????? ???? ??? ?? ??? ?????? ??????????
  ???? ?? ???? ????????? ?? ??????? ?????????
  ????????? ??????? ????? ???????????? ????????.

9
????? ??????? ????????? / ????

• ?????? ?????? ?????? ?? ??????? ??? ???????
  ???????? ?? ?????? ?????? ??? ??????? ?????????
  ?? ???? ???? ??????? ?? ?????? ??????? ?? ??????
  ?? ??? ????? ??????? ????? ?????.
• ??????? ???? ? ?? ?????? ??? ?????? ????? ??????
  ?????? ???? ???? ????? ??????? ????????? (BSC)
  ??? ?????? ??? ????????.
• ???? ??? ??????? (BSC) ?? ???????? ??? ?????
  ?????? ????????? ????????? ???? ???? ????? ??????
  ????? ????? ???? ??????? ??????? ??? ????
  ????????.

10
????? ??????? ????????? / ????

• ??? ????? (BSC) ????????? ?? ???????? ???
• ???? ????? ??????? ??? ?? ???? ?? ????????
  ???????.
• ???? ??? ??????? ??????? ???????? ???? ??? ????
  ??????? ??? ??? ?????? ??????? ????????
  ????????????.
• ???? ??? ????? ????? ??????? ????????
  ???????????? ??????? ?? ??????? ??????? ????????
  ?????????? ??????? ?????? ?????? ?????????.

11
????? ??????? ????????? / ????

• ?? ??? ?? ???? ? ???? ????? (BSC) ??? ????

?????? ?? ???????? ???????? ?????? ?? ??????????
??????? ????? ????? ??? ????? ??????? ?????????
?????? ???????? ?????????? ??????? (Outcome)
???????? ??????? (Performance Drivers) ???? ????
??????? ?? ???? ???????? ??????? ????????
????????????.
12
????? ??????? ????????? / ????
Measurement System
Strategic Management System
Communication Tools
13
????? ????? ??????? ?????????

• ????? (BSC) ??????? ?????? ?????? ??????? ??????
  ?? ???? ??????? ????????.
• ?????? ??? ??????? ????????? ???? ??????? ????
  ??? ?? ????? ????? (Perspectives) ???? ?? ????
  ????? ???? ???????
• ??????? ??????.
• ????? ???????.
• ????? ???????? ????????.
• ????? ?????? ??????.

14
????? ????? ??????? ?????????

• ??? ?????? ????? ?????? ????? ?????? (?? ????
  ??????? ??????) ? ?????? ????? ??????? ?????????
  (BSC) ??????? ??????? ?????? ??? ????? ??????.

15
????? ????? ??????? ??????????

• ??? ???????? ?????? ?? ????? ????? ? ??? ???
  ????? ?????? ?????? ??????? ???? ??????? ?????
  ????? ??????.
• ???? (BSC) ??????? ???????? ???? ????????? ??
  ?????? ????????? ??? ?????? ?????????.
• ????? ????? ??????? ????????? (BSC) ???? ??????
  ??????????? ??????? ??? ?????? ?? ?????? ??????
  ???? ???? ?????? ????? ???? ?????????.

16
????? ????? ??????? ?????????? / ????

• ????? (BSC) ?????? ??? ????? ??????? ??????? ?
  ????? ?????? ?? ??? ????? ?????? ?????? ????
  ??????? ???????.
• ????? (BSC) ???? ??????? ?? ????? ????? ???????
  ??????? ?????? ? ????? ??????? ? ????? ????????
  ???????? ?????? ????? ???????.
• ???? (BSC) ???? ??????? ??????? ? ??? ??? ?????
  ????? ?????? ?? ???? ??????? ????? ??????
  ???????? ??????? ?????? ????? ?????????.

17
????? ??????? ????????? ????? ?????

• ???? (BSC) ??? ?? ???????? ??????? ???? ???????
  ??? ?? ???? ???? ?? ?????? ?????????? ??????
  ???????? ????? ?????????.
• ???? ???????? ?? ???? ??????? ??????? ?? ???????
  ??????? ??????? ????????? ???????? ? ??? ????
  ??????? ?????????? ?? ?? ??????? ????????
  ???????? ?? ????? ?????? ?????? ???? ?????.
• ?? ????? (BSC) ???? ?? ???? ?????? ?????? ????
  ???? ???? ???? ? ????? ?? ????? ?? ????? ?????
  ????? ?? ?????? ??? ?????? ???? ???? ??????
  ?????????????.

18
????? ??????? ????????? ????? ????? / ????

• ????? (BSC) ???? ??????????? ??????? ??? ?????
  ??????? ????? ???????.
• ????? ??? ???????? ?????? ?? ???
• ???????? ???????? ????? ?????? ???????? (Outcome
  Measures).
• ???????? ???????? ??????? ???????? ?????????
  ???????? ??????? ?????? (Performance Drivers).
• ??? (BSC) ????? ?? ???? ????? ????? ?????? ??
  ??????? ???????? (Lagging Indicators) ?????????
  ???? ???? ?????? ????????? (Leading Indicators).

19
????? ??????? ????????? ????? ????? / ????

• ???? (BSC) ??????? ??? ???????? ????????
  ????????? ???? ???? ?????? ?????? ???? ???????
  ????????? ???????.
• ??? (BSC) ?? ???? ?? ???? ???? ???? ??????? ??
  ??????? ? ???? ???????? ??????? ?????????? ?????
  ????? ????????? ??? ????? ??????.

20
???????

• ????? ????? (BSC) ???? ???
• ??? ??? ????? ????????????.
• ??? ????? ???? ???????????? ???? ???????? ?????
  ????? ?? ???? ??????? ? ????? ????? ???????? ???
  ????? ??????? ??? ???? ????? ???????
  ????????????.
• ??????? ??? ??????? ??????? (??? ???? ???????
  ??????? ?????????? ????? ???????? ??????? ???????
  ???? ?? ??? ? ?? ???? ??????????? ????).

21
???????

• ??????? ??? ????????? ???? ???????? ????
• ??? ???? ???????? ???????????? ????????? ??
  ??????? ????????.
• ??? ???? ??? ????????? ?? ?????? ??????? (???????
  ? ??????? ? ?????????).

22
The BSC The Four Perspectives
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????????? ???????? (Financial Perspective)

• ???? ??? ??????? ??? ??????? ???????? ??????
  ????? ??????????? (Efficiency, Cost reduction).
• ???? ??? ????? ????? ???????????? ????????
  ???????? (????? ? ?????? ? ????? ? ?????? ???????
  EVA).
• ???? ???? ?? ????? ?????? ???? ????? ?? ?????
  ??????? ???? ??????? ????????? ??????? (Xerox).
• ?? ?????? ????? ????? ??????? ? ??? ???? ??????
  ???????? ?? ????????? ??? ???????? (Microsoft)
  ???? ??? ???? ?? ????????? ????????.

24
????????? ???????? / ????

• ???? ??? ??????? ?????? ???? ????? ???? ???
• ??????? ???? ?? ????? ???? ???????? ?????? ??????
  (????? ???????? ??? ???????? ??????? ? ??????? ?
  ????? ???????? ? IT).
• ???????? ??????? ????? ?? ????? ???? ??????
  ??????? ?? ??????? ???????.
• ??? ????? ??? ????? ??????? ??? ??? ???? ????? ??
  ??? ???? ??? ?????? ??????????.

25
????????? ???????? / ????

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• ??? ??????? ??????? ????? ???????.
• ???? ????????? ?? ???? ???? ???????.
• ??? ?? ????? ??? ?? ???? ????? ??????? ????????
  ??????????.
• ??? ????? ??? ???? ????? ????? ?????? ??? ????
  ??????? ?????? ??????? ??? ???????.
• ???? ? ????? ??? "????? ???????".

26
????????? ???????? / ????

• ?????? ??????? ?????? ???? ???? ? ??? ???
  ???????
• ?? ???? ?????? ???????.
• ?? ???? ????? ???????? ???? ????? ????? ???????.
• ???? ? ????? ??? "????? ???????? ????????".
• ?????? ?????? ??????? ?????? ?????? ?????????
  ??????? ??? ?????? ?????? ??????? ? ????? ???
  ????? ?????? ???????.

27
????????? ???????? / ????

• ???????? ??? ?????? ??????? ?????? ? ??? ???????
  ??? ????? ???????? ???? ?????? ???????? ???
  ?????? ?? ???????? ??????

• ?????????.
• ????????? / ????.
• ?????? ??? ?????????.
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• ???? ?????.
• ????? / ????.

• ?????? ????? ??? ????????.
• ?????? ??? ??? ?????.
• ??? ??????.
• ??????? ?????????.
• ?????? ??????? ??????.

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?????? ????????? (Customer Perspective)

• ????? ??????? ????????? ???? ???????? ???????
  ????? ?????? ???? ????? ?? ??? ?????? (???
  ??????? ? ???????? ???????? ? ??????? ????? ?
  ????? ?????? ? ????? ???????).
• ??? ??????? ?? ???? ????? ???? ????? ?? ???????
  ?????????? ????????? ?????? ???? ??????? ????????
  ???????? ??????????.

29
?????? ????????? / ????

• ????? ???? ????? ???????

• ??? ???????.
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• ???? ????????? ???? ??????.

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• ???????? ????????.
• ?????? ??? ????? ???.
• ????? ??????.
• ??? ???????.

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?????? ???????? ???????? (Internal Bus. Process
Perspective)

• ????? ???????? ???? ?????? ??? ??????? ???????
  ???????? ??? ?????? ??????? ?????? ???????? ??
  ???? ???????? ????? ??????? ?????? ? ?? ???? ????
  ??? ????? ???? ???? ???????? ???????.
• ??????? ????????? ?? ???? ?????? ???? ??? ??????
  ???????? ?????? ????????? ??????? ??? ? ?????
  ????? (BSC) ???? ?? ???? ????? ??? ????? ??????
  ???? ????? ??????.

31
?????? ???????? ???????? / ???? (Internal Bus.
Process Perspective)

• ???? ??? ??????? ??? ??????? ?????? ?????? ???
  ??? ??????? ????? ???? ??????? ??????? ???????.

Innovation
Operation
Customer Needs Identified
Customer Needs Satisfied
Make
Design
Develop
Market
Service
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?????? ???????? ???????? / ????

• ????? ???? ????? ???????? ????????

• ???? ???? ??????? ???????.
• ??????? ?? ?????.
• ???? ????? ????????.
• ??? ????????? ?????? ???????.
• ????? ????????? ?? ???????.
• ???????? ??????? ???????.

33
?????? ?????? ?????? (Learning Growth
Perspective)
Close skills gaps Increase employee training

• ???? ?????? ??????? ???? ??? ??????? ??????? ????
  ?????? ???? ???? ????? ?????? ?? ????? ???????
  ??????? ???? ???? ??? ???????? ??????? ??????.
• ?? ????? ??????? ?????? ???????? ???????? ???
  ?????? ??????? ????? ?????? ?????? ??????????.
• ?????? ?????? ?? ??????? ?????? ?? ????? ?????
  ?????? ?? ??????? ? ??????? ? ?????????.

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?????? ?????? ?????? / ???? (Learning Growth
Perspective)

• ??????? ?????? ?????? ??????? ????????? ??? (BSC)
  ???? ?????? ??? ?? ?? ???? ?? ??????? ?? ???????
  ???????? ?????????? ???? ?? ?????? ??????? ??????
  ??????? ???? ????? ?????.
• ???? ??????? ?? ??? ?? ???? ??? ?????? ?? ????
  ????????? ?? ????? ????? ???????? ? ????? (IT)
  ???????? ??????????.

35
?????? ?????? ?????? / ???? (Learning Growth
Perspective)

• ????? ???? ????? ?????? ??????

• ??? ????????.
• ????? ???????? ???.
• ???? ?????.
• ???????.
• ????? ??????.

• ??????? (???? / ?????).
• ????????.
• ???? ???????.
• ???????? ???????? ?????????.
• ????? ????????.

36
????????? ??????

• ?? ???? ???? (BSC).
• ????? ?????? ?????? ? ?? ?? ?? ??????? ???????
  ??? ????? ???? ??? ????? ???????
• ???????? ?????????????.
• ??????? ??????? ????.
• ??????? ?????? ??? ???????.
• ?? ???? ??????? ??? ?????.
• ?? ???? ??????? ??????? ?? ?????? ?????????.
• ?? ????? ???? ??? ???? (Relevant).
• ??? ????? ??????? ????????? (??? ???? ??????).

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Worksheet to Select BSC Measures
Measures Linkage to Strategy Ability to Quantify Access-ibility Ease of Undrstnding Counter-Balanced Relev-ance Common Definition Total Points Comm-ents
Financial
Measure 1
Measure 2
Measure 3
Customer
Measure 1
Measure 2
Measure 3
Int. Process
Measure 1
Measure 2
Measure 3
Emp. L. G.
Measure 1
Measure 2
Measure 3
Overall Assessment of Current Measures Overall Assessment of Current Measures Overall Assessment of Current Measures Overall Assessment of Current Measures Overall Assessment of Current Measures Overall Assessment of Current Measures Overall Assessment of Current Measures Overall Assessment of Current Measures Overall Assessment of Current Measures Overall Assessment of Current Measures
38
????????? ?????? / ????

• ??? ????????? ??????? ?????? ???????? ?? ???
  ????? ????? ?????? (BSC).
• ?????? ?????? ????? ??? ???????? ??? ??????
  ???????? ???????? ?????? ????????.
• ?? ??????? ??? ????? ????? (???? ? ????? ? ??????
  ? ??????).
• ??? ??????? ????? ?? 10 ??? ?? ??? ??????
  ????????.

39
??? ?????????? ?????????

• ???? ????? ????????? ?????? ???? ??? ???? ??
  ???????? ????????.
• ????? ??????? ???????? ????????? ?? ????? ????
  ???? ????? ?????? ???????????? ?? ???? ???????
  ??????? ??? (BSC).
• ???? ????? ??? ?????????? ??? ??????? 20 25
  ????? ????? ??? ???

????? ???????
3 4 ??????
5 8 ???????
5 10 ???????? ????????
3 6 ????????
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BSC Measure Dictionary
Perspective Customer Perspective Customer Measure / Name C01 / Customer Loyalty Rating Measure / Name C01 / Customer Loyalty Rating Measure / Name C01 / Customer Loyalty Rating Measure / Name C01 / Customer Loyalty Rating Measure / Name C01 / Customer Loyalty Rating Owner D. Ferguson, VP
Strategy Revenue growth Strategy Revenue growth Strategy Revenue growth Strategy Revenue growth Objective Increase customer loyalty Objective Increase customer loyalty Objective Increase customer loyalty Objective Increase customer loyalty
Description The customer loyalty rating measures the percentage of surveyed customers stating they prefer our products to competitor offerings, and will purchase our products again. Our research indicates that loyal customers make more frequent purchases and tend to recommend our brands to others. Therefore, we believe increasing customer loyalty will help us achieve our strategy of revenue growth. Description The customer loyalty rating measures the percentage of surveyed customers stating they prefer our products to competitor offerings, and will purchase our products again. Our research indicates that loyal customers make more frequent purchases and tend to recommend our brands to others. Therefore, we believe increasing customer loyalty will help us achieve our strategy of revenue growth. Description The customer loyalty rating measures the percentage of surveyed customers stating they prefer our products to competitor offerings, and will purchase our products again. Our research indicates that loyal customers make more frequent purchases and tend to recommend our brands to others. Therefore, we believe increasing customer loyalty will help us achieve our strategy of revenue growth. Description The customer loyalty rating measures the percentage of surveyed customers stating they prefer our products to competitor offerings, and will purchase our products again. Our research indicates that loyal customers make more frequent purchases and tend to recommend our brands to others. Therefore, we believe increasing customer loyalty will help us achieve our strategy of revenue growth. Description The customer loyalty rating measures the percentage of surveyed customers stating they prefer our products to competitor offerings, and will purchase our products again. Our research indicates that loyal customers make more frequent purchases and tend to recommend our brands to others. Therefore, we believe increasing customer loyalty will help us achieve our strategy of revenue growth. Description The customer loyalty rating measures the percentage of surveyed customers stating they prefer our products to competitor offerings, and will purchase our products again. Our research indicates that loyal customers make more frequent purchases and tend to recommend our brands to others. Therefore, we believe increasing customer loyalty will help us achieve our strategy of revenue growth. Description The customer loyalty rating measures the percentage of surveyed customers stating they prefer our products to competitor offerings, and will purchase our products again. Our research indicates that loyal customers make more frequent purchases and tend to recommend our brands to others. Therefore, we believe increasing customer loyalty will help us achieve our strategy of revenue growth. Description The customer loyalty rating measures the percentage of surveyed customers stating they prefer our products to competitor offerings, and will purchase our products again. Our research indicates that loyal customers make more frequent purchases and tend to recommend our brands to others. Therefore, we believe increasing customer loyalty will help us achieve our strategy of revenue growth.
Lag / Lead Lag Frequency Quarterly Frequency Quarterly Unit Type Percentage Unit Type Percentage Unit Type Percentage Polarity High values are good Polarity High values are good
Formula of quarterly survey respondents answering yes to survey question 5 Do you prefer our products to competitor offerings? and 6 Will you purchase our products again? divided by the total of surveys received. Formula of quarterly survey respondents answering yes to survey question 5 Do you prefer our products to competitor offerings? and 6 Will you purchase our products again? divided by the total of surveys received. Formula of quarterly survey respondents answering yes to survey question 5 Do you prefer our products to competitor offerings? and 6 Will you purchase our products again? divided by the total of surveys received. Formula of quarterly survey respondents answering yes to survey question 5 Do you prefer our products to competitor offerings? and 6 Will you purchase our products again? divided by the total of surveys received. Formula of quarterly survey respondents answering yes to survey question 5 Do you prefer our products to competitor offerings? and 6 Will you purchase our products again? divided by the total of surveys received. Formula of quarterly survey respondents answering yes to survey question 5 Do you prefer our products to competitor offerings? and 6 Will you purchase our products again? divided by the total of surveys received. Formula of quarterly survey respondents answering yes to survey question 5 Do you prefer our products to competitor offerings? and 6 Will you purchase our products again? divided by the total of surveys received. Formula of quarterly survey respondents answering yes to survey question 5 Do you prefer our products to competitor offerings? and 6 Will you purchase our products again? divided by the total of surveys received.
Data Source Data for this measure is provided by our survey company, SST. Each quarter they perform a random survey of our customers and provide the results electronically to our marketing department. Data is contained in the form of MS Excel spreadsheets (MKT SURVEY.xls, lines 14 15). Data is available the 10th business day following the end of each quarter. Data Source Data for this measure is provided by our survey company, SST. Each quarter they perform a random survey of our customers and provide the results electronically to our marketing department. Data is contained in the form of MS Excel spreadsheets (MKT SURVEY.xls, lines 14 15). Data is available the 10th business day following the end of each quarter. Data Source Data for this measure is provided by our survey company, SST. Each quarter they perform a random survey of our customers and provide the results electronically to our marketing department. Data is contained in the form of MS Excel spreadsheets (MKT SURVEY.xls, lines 14 15). Data is available the 10th business day following the end of each quarter. Data Source Data for this measure is provided by our survey company, SST. Each quarter they perform a random survey of our customers and provide the results electronically to our marketing department. Data is contained in the form of MS Excel spreadsheets (MKT SURVEY.xls, lines 14 15). Data is available the 10th business day following the end of each quarter. Data Source Data for this measure is provided by our survey company, SST. Each quarter they perform a random survey of our customers and provide the results electronically to our marketing department. Data is contained in the form of MS Excel spreadsheets (MKT SURVEY.xls, lines 14 15). Data is available the 10th business day following the end of each quarter. Data Source Data for this measure is provided by our survey company, SST. Each quarter they perform a random survey of our customers and provide the results electronically to our marketing department. Data is contained in the form of MS Excel spreadsheets (MKT SURVEY.xls, lines 14 15). Data is available the 10th business day following the end of each quarter. Data Source Data for this measure is provided by our survey company, SST. Each quarter they perform a random survey of our customers and provide the results electronically to our marketing department. Data is contained in the form of MS Excel spreadsheets (MKT SURVEY.xls, lines 14 15). Data is available the 10th business day following the end of each quarter. Data Source Data for this measure is provided by our survey company, SST. Each quarter they perform a random survey of our customers and provide the results electronically to our marketing department. Data is contained in the form of MS Excel spreadsheets (MKT SURVEY.xls, lines 14 15). Data is available the 10th business day following the end of each quarter.
Data Quality High-received automatically fm 3rd-party vendor Data Quality High-received automatically fm 3rd-party vendor Data Quality High-received automatically fm 3rd-party vendor Data Quality High-received automatically fm 3rd-party vendor Data Quality High-received automatically fm 3rd-party vendor Data Collector 1. Hashem, Marketing Analyst Data Collector 1. Hashem, Marketing Analyst Data Collector 1. Hashem, Marketing Analyst
Baseline Our most recent data received from SST indicates a customer loyalty percentage of 59. Baseline Our most recent data received from SST indicates a customer loyalty percentage of 59. Baseline Our most recent data received from SST indicates a customer loyalty percentage of 59. Baseline Our most recent data received from SST indicates a customer loyalty percentage of 59. Target Q1 2001 65, Q2 2001 68, Q3 72 Q4 2001 75 Target Q1 2001 65, Q2 2001 68, Q3 72 Q4 2001 75 Target Q1 2001 65, Q2 2001 68, Q3 72 Q4 2001 75 Target Q1 2001 65, Q2 2001 68, Q3 72 Q4 2001 75
Target Rationale Achieving customer loyalty is critical to our revenue growth strategy. The quarterly increases were targeting are higher than in past years but reflect our increased focus on loyalty. Target Rationale Achieving customer loyalty is critical to our revenue growth strategy. The quarterly increases were targeting are higher than in past years but reflect our increased focus on loyalty. Target Rationale Achieving customer loyalty is critical to our revenue growth strategy. The quarterly increases were targeting are higher than in past years but reflect our increased focus on loyalty. Target Rationale Achieving customer loyalty is critical to our revenue growth strategy. The quarterly increases were targeting are higher than in past years but reflect our increased focus on loyalty. Target Rationale Achieving customer loyalty is critical to our revenue growth strategy. The quarterly increases were targeting are higher than in past years but reflect our increased focus on loyalty. Target Rationale Achieving customer loyalty is critical to our revenue growth strategy. The quarterly increases were targeting are higher than in past years but reflect our increased focus on loyalty. Target Rationale Achieving customer loyalty is critical to our revenue growth strategy. The quarterly increases were targeting are higher than in past years but reflect our increased focus on loyalty. Target Rationale Achieving customer loyalty is critical to our revenue growth strategy. The quarterly increases were targeting are higher than in past years but reflect our increased focus on loyalty.
Initiatives 1. Seasonal promotions Seasonal promotions Seasonal promotions Seasonal promotions Seasonal promotions Seasonal promotions
2. Customer relationship management project Customer relationship management project Customer relationship management project Customer relationship management project Customer relationship management project Customer relationship management project
3. Customer service training Customer service training Customer service training Customer service training Customer service training Customer service training
41
A Typical Scorecard
42
Financial vs. Non-Financial
43
External vs. Internal
The measures represent a balance between external
measures for shareholders customers and
internal measures of critical business processes,
innovation and learning growth.
44
Lagging Outcome vs. Leading Input
45
Strategic Alignment

• Formulating a BSC to link mission strategy to
  explicit objectives measures is only a start of
  using BSC as a management System.
• Every person in the organization (including the
  Board) should understand the strategy and his
  role in it.
• Forming an executive team is essential to
• Share the vision strategy with the whole
  organization.

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Strategic Alignment / Contd

• Communicating the strategy and linking it to
  personal goals to create a shared understanding
  among people (create awareness change
  behaviors).
• Everyone understands long term goals strategy
  for achieving them.
• All organization efforts can become aligned to
  the needed transformation winning the minds
  the hearts of our people.

The following diagram shows the mechanism used.
47
A Different Management System for Strategic
Implementation
48
BSC Strategic Framework for Action

• Board members, staff seniors should understand
  the strategy the required behavior to achieve
  it- continuous education feedback are essential.

• Financial non-financial measures must be part
  of the information system for all levels of
  employees.

• Front staff must know the financial impact of
  their decisions.
• Seniors must understand the drivers of long-term
  financial success.

• Objectives of BSC are derived from top-down
  process driven by mission strategy.

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BSC Translating Strategy into Operational Terms

• Objectives measures derived from vision
  strategy.

• Objectives measures view organizational
  performance from 4 perspectives.
• Explanation of objectives beyond financial
  measures.

50
????? (BSC)
????? ???? ???????
?????? (1)

• ????? ????????????? ???? ???? ???????.
• ??????? ???? ???? ??????? ?????.

?????? (2)

• ????? ????? ?????? ???????? ?????? ?????? ????
  ???? ?????? ?? ?? ???????? ???????.
• ??????? ????????? ?????????.

?????? (3)
?????? (4)
????? ????? ?????? ????? ????? ?? ?? ???? ????
????
?????? (5)
??? ???? ??????? ???? ?????
?????? (6)
??????? ??????? ??????? ?????? ??? ???????
?????? (7)
??? ????? ????? ??????? BSC
51
How BSC is Developed?
52
Cause Effect Relationship
Shallow men believe in luck. Strong men believe
in cause effect

• ??? ???? ?????????? ??????? ?? ???? ??????
  ??????? ?? ?? ???? (BSC) ?? ????? ?????? ??????.
• ??? ?? ???? ????? ????? ???????? ??? ?? ?????
  (BSC).
• ?????? ??? ??? ????? ???????? (??????? ??????).
• ??? ?????? ??? ??? ????? ????? ??????? ???????
  ???????? ???? ?????? (????? ???????).
• ?????? ??????? ?? ???? ??? ??? ??????? ???????
  (????? ???????).
• ?? ???? ????? ???????? ????? ??? ???? ???????
  (????? ????????).
• ????? ???????? ???? ??????? ??? ????? ????????
  (????? ????? ???????).

53
BSC A Business Model (Cause Effect
Relationship)
54
General Principles in our Strategy

• Main Issues
• Leadership in the financial industry.
• Superior customer service.
• Efficient IT.
• Professional ethical staff.
• These corporate level themes should be translated
  into specific operational measures by areas
  SBUs.
• The targets then assigned to each area or SBU.

55
General Principles in our Strategy /Contd

• Areas SBUs are to develop their own strategy
  objectives that are consistent with the corporate
  strategy.
• Areas SBUs are to measure result using
  customized ones.

56
Corporate BSC Vs. Area or Divisional Level BSC

• Area or SBU Vs. Corporate Strategy

Corporate Strategy Guiding Principles Corporate BSC SBU
Revenue growth Each SBU should seek aggressive growth. Asset growth Introduction of new products to increase revenue.
Overall strategic objectives provide the
structure for BSC that areas or SBUs should
produce.