Balance Score Card

How does the Balanced Scorecard get around the problem of just

using financial performance to measure overall performance?

Why financial only is not enough?

First: What is balance scorecard?

The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. It is a as a performance measurement framework that added strategic non-financial performance measures to traditional financial metrics to give managers and executives a more 'balanced' view of organizational performance.

"The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events only while balanced scorecard considers four prospective:

* Financial: encourages the identification of a few relevant high-level financial measures. In particular, designers were encouraged to choose measures that helped inform the answer to the question "How do we look to shareholders?"

* Customer: encourages the identification of measures that answer the question "How do customers see us?"

* Internal Business Processes: encourages the identification of measures that answer the question "What must we excel at?"

* Learning and Growth: encourages the identification of measures that answer the question "Can we continue to improve and create value?".

2) Why quantification of Vision is important in BSC?

Quantifying Vision!

* Quantifying the vision is creating tangible goals that represent achieving the vision. When using the Balanced Scorecard (BSC) Methodology, the Key Performance Indicators (KPI) for the vision are the 3-5 most significant goals at the top of the BSC Map. These KPIs have a goal for the final year of the vision as well as a breakdown every year up to the final year.

Why ENOC used consultant for implementation in addition to use

of multifunctional Task Force?

ENOC VISION: "to be a regional integrated oil & gas group highly profitable and socially responsible towards employees, community and environment"

ENOC MISSION:

Achieving sustainable development and highly profitable growth

Serving growing energy needs of Dubai

Attracting, developing and retaining top talent to become the employer of choice

Adopting latest technologies and implementing best practices thus achieving world-class performance

Meeting and exceeding customer expectations in terms of quality and service

Maintaining high industry standards in Environment, Helth and Sefety

* Consultants play an important role in the successful implementation of the scorecard project bringing lacking knowledge and serving as an outside expert.

* Four main functions of consultants in the Balanced Scorecard project are:

1. Planing, managing, and facilitating the scorecard development process, coordinating working teams

* For many organization doing the project of such magnitude themselves is not a realistic option, given the time and resources constrains. It can be a lengthy process to build internal knowledge and expertize. Most organizations will be looking to get the scorecard up and running quicker, especially if there is a compelling business need for change, strategic development or disciplined execution.

2. Facilitating the process by with executive team reaches agreement on key strategic and scorecard issues.

Some tough questions on Strategy, Mission, Strategy Map objectives and Balanced Scorecard measures have to be answered and agreements reached during executive interviews and workshops. Asking probing questions, challenging assumptions, rising awareness of cultural, structural, or logistical reasons for possible scorecard