Правительство Российской Федерации
Федеральное государственное автономное образовательное учреждение
высшего профессионального образования
«Национальный исследовательский университет
«Высшая школа экономики»
Санкт-Петербургский филиал
Факультет Экономики
Программа дисциплины
СБАЛАНСИРОВАННАЯ СИСТЕМА ПОКАЗАТЕЛЕЙ
(Balanced Scorecard)
Для направления 080500.68 «Менеджмент»
магистерской программы «Финансовый менеджмент»
Курс II
Автор , к. э.н., доц.
sboguslavskaya@hse.spb.ru
Одобрена на заседании кафедры Финансовых рынков и финансового менеджмента «___»____________ 2011 г.
Зав. кафедрой //
Рекомендована секцией УМС
«___»____________ 2011 г.
Председатель / /
Утверждена УС факультета Экономики
«___»_____________2011 г.
Ученый секретарь / /
Санкт-Петербург, 2011
NATIONAL RESEARCH UNIVERSITY –
HIGHER SCHOOL OF ECONOMICS
St.-Petersburg branch
Faculty of economics
Department of financial markets and financial management
BALANCED SCORECARD
Syllabus of the Course
Developed by Svetlana Boguslavskaya, As. Professor
080500.68 “Management”,
MDP “Financial Management”
St.-Petersburg, 2011
EXPLANATORY NOTE
Author Program: As. Prof., Boguslavskaya S.В.
Requirements for students:
The discipline “Balanced Scorecard” (“BSC”) is a study program for Master students, which is based on the knowledge gained by students, from the following courses: “Management Accounting”, “Investment Analysis”, “Financial Management”, “Corporate Finance” and “Budgeting”.
Abstract:
The syllabus for the “Balanced Scorecard” is prepared in accordance with the requirements of a discipline of choice to the level of graduate training of higher education state educational standards.
The uniqueness of the course is to examine one of the modern financial management systems from an enterprise, in connection with other systems. This corresponds to the fundamental components of the course, that can be summarized as: the formation of a financial management model based on a system covering all aspects of the company activities and focusing on teaching methodology for planning and training (using special software).
This vast area of applied analytical work of a financial manager incorporates modern business analysis tools and techniques. The influence of the external environment, the formation of targets with the use of economic and mathematical models and formats. These ideas are applied by companies in order to operate within the planned regulatory framework, taking into account quantitative and non-quantitative indicators and linking those parameters to the united system.
The objectives of the balanced scorecard activities are aimed to improving the company functioning as an independent economic entity in the market environment, with special programs.
The course summarizes the latest technologies for planning, ranging from strategic planning to work scheduling, logistic flows and financial results; formulated ideas of business processing - the company, business unit, functional unit; systematize approaches to the planning process in Russian and foreign companies and developing skills to work with decision-making software.
The subject matter includes 20 hours of lectures and 20 hours of practical training (seminars), associated projects and presentations. Students' individual work includes preparation for seminars and associated projects.
The aim of the course
Developing a balanced performance management system is one of the most important control functions associated with the strategic targets management, resulting operations, routes and resources needed to achieve goals. However, the literature on this subject is in Russian, with all its diversity, rare exceptions, system individual aspects: the most frequently addressed issues of business planning, strategic planning and budgeting. Therefore, there is a need to systematize the material and information, understanding content in accordance to foreign and domestic practices – with emphasis on analysis.
A synthesis of contemporary theory and practice of budgeting systems in view of the operational management of Russian companies and the study of domestic programs is also required for the creation and use of BSC.
Implementation goals are assisted by the creation of a foundation for the development of financial management skills in the current market environment, regardless of industry or the levels and types of in-house plans.
Students should:
In accordance with the stated purpose of the course, focus on the following learning objectives:
- To know the essence of the economic, organizational and social changes that occur in domestic companies with a shift of emphasis from production to marketing principles of planning and management;
- Be able to build a model of financial management, based on a system covering all aspects of the activities of a modern company with the release levels and planning horizon (e. g. using KPI);
- Explore the possibilities of software for creating and using the BSC;
- Gain knowledge and skills in order to make management decisions in this area.
- Know and be able to use special terminology of financial strategic management.
Assessment: The assessment will be based on workshops, home tasks and review. Also final presentation of students’ projects will be obligatory at the end of the course.
Methods of forming the resulting estimates:
Assessment of students' knowledge is based on a point system with accordance to results of the activities in workshops, homework, review and project presentation. The maximum number of points that can be achieved for this course is 10, including:
• Evaluation of activities in workshops (W) - 10% of the total assessment;
• Evaluation of homework (H) - 25%
• Assessment of the review (R) - 35%;
• Assessment of the presentation (P) - 30%.
Thus the score and C = 0.1 W + 0.25 H + 0.35 R + 0.3 P
Course Content
Topic 1. The concept of strategic management. Kinds of strategies. Define goals and market positioning. Managerial Accounting. Budgeting. Total Quality Management. Financial and nonfinancial performance measures - the development over times. Alternative models.
Topic 2. Analysis of the financial condition of the company. Market research, market counterparties or competitors; the external environment. SWOT-analysis. Determining strategic objectives. Description of business processes. Four components (projections) BSC: finance, customers, business processes, employees, and research.
Topic 3. Types of fixed targets, and their dependence on the stage of the company, its activity. Financial performance, as the main outcome criteria. Selection and justification of performance in accordance to the objectives. Defining standards for levels of indicators and their frequency count and adjustments.
Topic 4. Customer focus as the primary method to achieve results. Selection of the development and support and non-financial indicators is the “customers” in accordance to the objectives. Defining standards for levels of indicators and their frequency count and adjustments.
Topic 5. Business processes - the key actions from the initial to the final stages. The organizational structure of the enterprise. Projection “business unit”. Selection and justification of indicators is “business processes” in accordance to the objectives. Defining standards for levels of indicators and their frequency count and adjustments.
Topic 6. Personnel of the company, its qualitative composition. Motivation and satisfaction of munication in an organization. Selection and justification of performance component of the “workers and research” in accordance to the objectives. Defining standards for levels of indicators and their frequency count and adjustments.
Topic 7. The relationship of indicators within the components and criteria in the overall system (between the projections). Interaction totals and current rates. Checking the reachability of standards. Adjusting timing advances and standards, taking into account the relationship indicators.
Topic 8. Strategy maps as a way of monitoring the activities and achievement of interim and final criteria. Mapping and sharing of information. The allocation of responsibility for performance between departments and specific employees.
Topic 9. Work with staff to explain the goals and objectives of the BSC. Allocation of responsibility for specific tasks, motivation to achieve goals. Stimulation. Defining successful performance of each employee.
workshops
Workshop 1. BSC and alternative models. Features of the Balanced Scorecard.
Different models of management accounting. Variants of the balanced scorecard and their differences. Advantages and disadvantages of the concept of D. Norton and R. Kaplan. Features of the model in Russia and abroad. Examples of successful application of the system. Options for partial use of the model. Possible reasons for the failures in the formulation of a balanced scorecard.
Workshop 2. Four aspects of the Balanced Scorecard
1) financial;
2) customer oriental;
3) internal business processes;
4) staff and infrastructure
Features selection and data analysis, goal setting and choice of indicators for each projection.
Workshops 3-6. Steps of developing a balanced scorecard:
1) Seminars for executives on strategic management, budgeting and balanced scorecard.
2) Analysis of the enterprise, analyzing of key indicators in the marketplace, relationship with contractors, etc.
3) Questionnaires and interviews with owners and managers of pre-acceptance for understanding the company's strategy. The mission statement and vision. Development of a unified business strategy and strategic maps.
4) Modeling of business processes based on already received information. Determination of the owners of each business process. Determination of financial responsibility centers and the construction of the organizational financial structure. Implementation and adjustment of intra-budgeting. Workflow optimization.
5) Choice of indicators for each component of the BSC. Check the relationship of indicators, the exclusion of contradictions. The allocation of responsibility. Determination of reasoned values for each indicator and the dates for their achievement and control. Balance checking.
6) Preparation of the BSC units and key performance indicators (KPIs) for each employee or position - concatenation and decomposition.
Workshops 7-8. Checking the balance of the system and measures for its implementation.
Horizontal and vertical balance. Balance at various levels of management. Transparency of the system.
Implementing, updating and revision of the BSC. Integrating the BSC with the basic management. systems, planning and information sharing within the organization. Automation of operational monitoring and control. Program developing to stimulate and motivate staff.
REVIEW AND PROJECT TASK
Develop Balanced Scorecard model for any company. Main steps:
1. Short company description (company size; form of activity, the sphere, products, etc.) and today’s financial management system analysis (if there are management accounting, budgeting, Quality management system, etc.)
2. The organization (departments hierarchy) and financial (financial responsibility centers hierarchy) structure
3. Financial analysis, external environment and counter-agents estimation. SWOT-analysis.
pany strategy formulating, mission, vision and main goals
5. Main business processes (Who? What? When? In what order?)
6. Financial Perspective BSC – financial goals and indexes estimating main goals achievement.
7. Client-Relation (Market) Perspective BSC – financial and non-financial factors, evaluating company relationship with counter-agents and clients satisfaction.
8. Business-processes Perspective BSC – financial and non-financial factors, evaluating various processes time expenditure and effectiveness.
9. Stuff and Infrastructure Perspective BSC – financial and non-financial factors, characterizing inside communications, automatization, stuff motivation, work effectiveness, researches, etc.
In 6-9 points:
- name factors and explain your choice (according to necessity and sufficiency);
- give accounting formulas and normative for each factor;
- explain what will be if the factor changes (for each factor);
- plan how often it is better to account that factors and who will be responsible for their achievement;
- suggest what managers have to do to achieve the factors (one factor in each perspective).
10. Cascading and decomposition: make a strategic aim map for one of the company departments (it can be also branch or other sector) according to the goal and factors map of the firm in whole. Decompose company factors if you need.
11. Take one data of each perspective and decompose it one department level (you have to include all departments that company level fulfillment depends on) and then on staff level (at least one position in each department).
12. Regulation: describe how, in which order, by whom, according to what data the decisions are made, formulate and overview aims and factors, how all the factors are counted, who is responsible for the achievement and for the proper work of the whole system.
QUESTIONS TO OFFSET
1. Mission, vision and market positioning.
2. The concept of strategic management. Kinds of strategies. Defining business strategy.
3. Managerial Accounting. Budgeting. Total Quality Management. Other related management system.
5. Financial and nonfinancial performance measures and their development over time.
4. Alternative models of BSC.
5. Analysis of the financial condition of the company. Market research, market counterparties or competitors; the external environment. SWOT-analysis.
6. Business processes: concept, content, description.
7. Four BSC components (projections): finance, customers, business processes, employees, and research.
8. Types of the main goals of the enterprise at different stages of development. Selection and justification of performance in accordance to the objectives.
9. Financial performance, as the main outcome criteria. Defining standards for levels of indicators and their frequency count and adjustments.
10. Selection of the development and support and non-financial indicators is the Customers in accordance to the objectives. Defining standards for levels of indicators and their frequency count and adjustments.
11. The organizational structure of the enterprise. Projection “business process”.
12. Selection and justification of indicators is “business processes” in accordance to the objectives. Defining standards for levels of indicators and their frequency count and adjustments.
13. Personnel of the company, its qualitative composition. Motivation and satisfaction of munication within the organization.
14. Selection and justification of performance component of the «workers and research» in accordance to the objectives. Defining standards for levels of indicators and their frequency count and adjustments.
15. The relationship of indicators within the components and criteria in the overall system (between the projections). Interaction total and current rates.
16. Checking the reachability of standards. Adjusting timing advances and standards, taking into account the relationship indicators.
17. Strategy maps as a way of monitoring the activities and achievement of interim and final criteria.
18. Work with staff to explain the goals and objectives of the BSC. Allocation of responsibility for specific tasks, motivation to achieve goals. Stimulation.
19. Distribution of BSC and strategic maps for subdivisions. Determining the impact of units of employees. Defining successful performance of each employee.
RECOMMENDED READING
(Main)
1. Norton D., Kaplan R. The Balanced Scorecard: translating strategy into action.- Harvard Business Press, 1996. (or Kaplan R. S., Norton D. P. Balanced Scorecard. From strategy to action. - 2nd ed. Corr. and add. - Moscow: ZAO Olimp-Business, 2005)
2. Norton D., Kaplan R. The Strategy-Focused Organization. - Harvard Business School Press, 2000. (or Kaplan R. S., Norton D. P. Organization focused on strategy. As the new business environment succeed organizations to adopt a balanced scorecard. - Moscow: ZAO Olimp-Business, 2004)
3. Hubert K. Rampersad Universal System Performance: How to achieve results while maintaining integrity, Wiley Publisher, 2005
4. Measuring the effectiveness of the company. - Moscow: Alpina Business Books, 2006.
5. Kandalintsev V. G. Balanced management of the enterprise. Textbook, KNORUS, 2006
(More)
6. Basov L. E., Protasov B. V. Quality Management: A Textbook. - Moscow: INFRA-M, 2002.
7. Coveney M. Strategic gap: Technology embodiment of corporate strategy. - Moscow: Alpina Business Books, 2004.
8. Dzhenster P., Hussey D. The analysis of the strengths and weaknesses of the company: the definition of country strategically opportunities. Moscow: Publishing house «Williams», 2003.
9. Gleich R. Performance Measurement. Grundlagen, Konzepte und empirische Erkenntnisse // In Controlling. 2002. Heft 8/9, August/September.
10. Herzberg, F. The Motivation to Work, Wiley, New York. – 1959.
11. Johnson H. T., Kaplan R. S. Relevance Lost: The Rise and the Fall of Management Accounting. Boston: Harvard University Press, 1987.
12. The concept of controlling: Managerial Accounting. Reporting system. Budgeting. MA: Harvard Business Review, 2005.
13. Neudachin V. V The implementation strategy of the company: financial analysis and modeling - M.: Top, 2006.
14. Nirman R. Motivation. - M.: Omega-A, 2006.
15. Suloeva S. B. Strategic controlling an industrial plant. - St. Petersburg: «Nestor», 2005.
16. Strategic Management: city, state, business / Lvov DS and others, under. Ed. Lvov DS, Granberg, AG, Egorshina A. VP. - UN Sciences, Nimba - 2 nd ed. Ext. - Moscow: ZAO Publishing House «Economics», 2005.
17. Kaplan Robert S. Cost and Effect: Using Integrated Cost System to Drive Profitability and Performance. President and Fellows of Harvard College, USA, 1998.
18. Kaplan, Robert S. Norton, David R. The Balanced Scorecard: Measures That Drive Performance //Harvard Business Review. – 2005. Vol. 83 Issue 7/8 (Jul/Aug). – Р. 172-180.
19. Khrutsky V. E., Gamayunov V. V. Intra Budgeting: Handbook statement of financial planning, ed. 2-e - Moscow: Finance and Statistics, 2006.
20. Norton D., Kaplan R. The Balanced Scorecard: translating strategy into action.- Harvard Business Press, 1996.
21. Norton D., Kaplan R. The Strategy-Focused Organization. - Harvard Business School Press, 2000.
Norton D., Kaplan R. Using the Balanced Scorecard as a Strategic Management System // Harvard Business Review.- 1996. - January - February.- P. 31-38.
22. Maisel, L. S., Performance measurement: the balanced scorecard approach // Journal of Cost Management, Vol. 6 No. 2, 1992, pp. 47-52
23. Maslow, A., Motivation and Personality (2nd ed.), Harper & Row, New York. – 1970.
24. McNair C. J., Richard L. Lunch, Kelvin F. Cross. Do financial and nonfinancial performance measures have to agree? // Management Accounting№ 11. P. 23-38.
25. Tsarev, V. Corporate planning. - St.: Peter, 2002.
26. Vroom, V. Work and Motivation, New York: Wiley. – 1964.
27. http://www. *****/
28. http://plan. *****/bpl/r1-g1-1.2.doc
29. http://www. /articles/bsc. html
30. http://www. /
31. http://www.
32. http://www. *****/
33. http://www. *****
THEMATIC PLAN
№ | Parts of the course | Contact hours | Self study | Total hours | ||
Lectures | Workshops | Generally | ||||
1 | Topic 1 | 4 | 4 | 10 | 14 | |
2 | Topic 2 | 3 | 4 | 7 | 14 | 21 |
3 | Topic 3 | 3 | 4 | 7 | 14 | 21 |
4 | Topic 4 | 3 | 4 | 7 | 14 | 21 |
5 | Topic 5 | 4 | 4 | 8 | 12 | 20 |
6 | Topic 6 | 4 | 4 | 8 | 14 | 22 |
7 | Topic 7 | 3 | 4 | 7 | 12 | 19 |
8 | Topic 8 | 4 | 4 | 8 | 14 | 22 |
9 | Topic 9 | 4 | 4 | 8 | 12 | 20 |
TOTAL | 32 | 32 | 64 | 116 | 180 |
