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Course Details

Overview

The Organizational Performance Management Using the Balanced Scorecard — BSC course is a strategic training program designed to enable leaders and managers to design and implement an integrated system for measuring and managing organizational performance according to the Balanced Scorecard — BSC — model developed by Robert Kaplan and David Norton. In light of the strategic transformation of the Kingdom of Saudi Arabia and Vision 2030, measuring performance across multiple dimensions — not only financial — has become essential to ensure that strategy is translated into tangible results, balance is achieved between short-term and long-term objectives, and individual goals are aligned with organizational goals.

The course takes participants from the fundamental concepts of performance management — KPIs, OKRs, and MBO — to designing a Balanced Scorecard consisting of four perspectives: Financial, Customer, Internal Processes, and Learning and Growth. It also covers how to translate the organization’s strategy into a Strategy Map, select measurable Key Performance Indicators — KPIs, define Targets, create Initiatives, and link incentives and rewards to results.

The program is designed to be 70% practical through real case studies of Saudi companies that have implemented BSC, exercises on building a Balanced Scorecard for hypothetical organizations, and the use of performance monitoring tools such as Excel, Power BI, or BSC systems.

Objectives

Program Objectives

Understand the Balanced Scorecard — BSC — model and its four perspectives — explain the four perspectives and the cause-and-effect relationships between them: Learning and Growth leads to improved Internal Processes, which leads to Customer Satisfaction, which leads to better Financial Results.
Translate the organization’s strategy into a Strategy Map — formulate strategic objectives for each perspective and link them through causal relationships. Examples of objectives include increasing market share, improving customer satisfaction, reducing production cycle time, and developing employee skills.
Select appropriate Key Performance Indicators — KPIs — for each strategic objective, select measurable indicators, both quantitative and qualitative. KPI selection criteria include SMART — Specific, Measurable, Achievable, Relevant, and Time-bound — balanced between leading and lagging indicators, and actionable.
Set Targets and Initiatives — for each indicator, define the current value — Baseline — the target value — Target — and the timeline for achievement. Identify the initiatives, projects, and programs required to improve the indicators.
Link the Balanced Scorecard to rewards and incentives — design an incentive system based on achieving BSC objectives at the organizational, departmental, and individual levels. Use the Personal Balanced Scorecard to link personal goals with the company’s strategy.
Implement and monitor the Balanced Scorecard using technical tools — use Excel, Power BI, or specialized BSC systems such as QuickScore, Corporater, and ActiveStrategy to collect data, create dashboards, and issue periodic reports.

Target Audience

Chief Executive Officers — CEOs — and senior executives.
Strategic Planning Managers.
Human Resources Managers responsible for performance management.
Quality and Organizational Excellence Managers.
Operations Managers and finance managers.
Governance and risk management officers.
Graduates of business administration and industrial engineering.

Competencies

Core Competencies

Building a Strategy Map for a Real or Hypothetical Organization

A visual diagram showing the strategic objectives across the four perspectives and the cause-and-effect relationships between them.

Selecting a Balanced Set of Key Performance Indicators — 10–15 KPIs

A list containing: perspective, strategic objective, KPI, formula, measurement frequency, unit, target, and current value.

Preparing a Balanced Scorecard — BSC — Using Excel: Comprehensive Template

An Excel table containing tabs for Strategy Map, KPIs, Targets, Initiatives, and Dashboard.

Calculating the Customer Satisfaction Score — CSAT — and Net Promoter Score — NPS

Design a simple survey, calculate the average rating, and calculate the ratio of promoters to detractors.

Calculating Internal Process Efficiency Indicators, such as Cycle Time and Defects Per Million Opportunities — DPMO

Collect operational data, calculate the average time, calculate the defect rate, and convert it into Defects Per Million Opportunities — DPMO.

Preparing a Quarterly Balanced Scorecard Report

Prepare a report for company management summarizing progress toward objectives, green/red indicators, delayed initiatives, and corrective actions.

Learning Journey

Program Outline

Day One: Fundamentals of Performance Management and the Balanced Scorecard Model

Introduction to Organizational Performance Management

Definition of Performance Management: Performance management is a continuous process of setting objectives, measuring progress, and correcting direction to achieve strategic results. Evolution of Performance Management: From financial measurement only, such as ROI and EPS, to balanced performance measurement. Other Performance Management Models: MBO — Management by Objectives: Specific objectives agreed upon between the manager and the employee. OKRs — Objectives and Key Results: Ambitious objectives with measurable key results, used by organizations such as Google and Intel. Six Sigma: Quality improvement by reducing defects. EFQM — European Foundation for Quality Management.

The Evolution of the Balanced Scorecard — BSC

The Evolution of the Balanced Scorecard — BSC: Developed by Robert Kaplan and David Norton in 1992. Main Thesis: Relying only on financial measures is not sufficient to guide an organization in the modern competitive environment. Adoption: Approximately 50% of Fortune 1000 companies use the BSC. Updates: BSC Second Generation: Linking strategy to operations. BSC Third Generation: Strategy Maps.

The Four Perspectives of the Balanced Scorecard

The Four Perspectives of the Balanced Scorecard: Financial: How do we look to our shareholders? Examples include revenue growth, profitability, return on investment, and cash flow. Customer: How do our customers see us? Examples include customer satisfaction, retention, and market share. Internal Processes: Which processes must we excel at? Examples include production efficiency, quality, delivery time, and innovation. Learning and Growth: How do we maintain our ability to change and improve? Examples include employee satisfaction, skills, information systems, and innovation culture. Cause-and-Effect Relationship: Employee training — Learning and Growth — leads to improved production quality — Internal Processes — which leads to higher customer satisfaction — Customer — and ultimately increased sales — Financial.

Practical Workshop: Defining Objectives for the BSC Perspectives of a Telecommunications Company

Practical Workshop — Defining Objectives for the BSC Perspectives of a Telecommunications Company: Required Practical Activity — Small Working Groups: Work on a Saudi telecommunications company, such as STC. Propose 3–5 strategic objectives for each perspective. Examples include: Financial: Increase revenue from data services. Customer: Reduce customer service waiting time to less than one minute. Internal Processes: Achieve 5G network coverage in 90% of cities. Learning and Growth: Train 80% of employees on new technologies. Discuss the cause-and-effect relationships between the objectives. Submit the list of objectives.

The Difference Between BSC, OKRs, and KPIs

The Difference Between BSC, OKRs, and KPIs: BSC: A comprehensive strategic framework that covers the entire organization, usually with 15–25 indicators. OKRs: Usually used at the team or project level, with ambitious objectives set quarterly. KPIs: Performance indicators that measure the current status and are often part of the BSC. Integration: Companies often use both approaches together: BSC for the overall strategic view and OKRs for short-term plans.

Day Two: Building a Strategy Map and Selecting KPIs

Strategy Map — Concept and Development

Strategy Map — Concept and Development: Definition: A visual diagram that shows the organization’s strategic objectives across the four perspectives, along with the cause-and-effect links between them. Benefits: Clarifying the strategy for all employees. Prioritizing initiatives. Tracking strategy execution. Steps for Building the Strategy Map: Define the ultimate financial objective, such as increasing shareholder value. Define the customer objectives that support the financial objective. Define the internal process objectives that support customer objectives. Define the learning and growth objectives that support internal process objectives.

How to Design a Strategy Map Using PowerPoint or a Drawing Tool

How to Design a Strategy Map Using PowerPoint or a Drawing Tool: Example for a Service Company: Financial: Increase revenues and reduce costs. Customer: Increase customer satisfaction and reduce response time. Internal Processes: Improve service quality and simplify procedures. Learning and Growth: Train employees in service excellence and develop a Customer Relationship Management — CRM — system. Arrows are drawn between the objectives to show the cause-and-effect relationships. Practical Application: Building a Strategy Map for an e-commerce company.

Selecting Key Performance Indicators — KPIs

Selecting Key Performance Indicators — KPIs: KPI Selection Criteria: Linked to the Strategic Objective: Do not measure items that do not directly affect the objective. Measurable: Quantitatively or qualitatively, using a clear measurement scale. Achievable: Employees must be able to influence the indicator. Relevant: The indicator must be related to the objective. Time-Bound: The indicator must be measured periodically. Types of KPIs: Lagging Indicators: Measure final outcomes, such as revenue and profitability. Leading Indicators: Measure the drivers that lead to results, such as the number of sales calls and production cycle time. A balanced scorecard should include both leading and lagging indicators.

Examples of KPIs for Each Perspective

Examples of KPIs for Each Perspective: Financial Perspective: Revenue growth percentage. Return on Assets — ROA. Free Cash Flow. Cost savings. Economic Value Added — EVA. Customer Perspective: Market share percentage. Customer Satisfaction Score — CSAT. Net Promoter Score — NPS. Customer retention rate. Number of complaints. Internal Processes Perspective: Cycle Time. Defect Rate. Employee productivity — Revenue per Employee. Complaint resolution time. Inventory turnover rate. Learning and Growth Perspective: Employee Satisfaction. Employee Turnover Rate. Training hours per employee. Percentage of positions filled internally. Number of implemented innovative ideas.

Practical Workshop: Defining KPIs for a Strategy Map

Practical Workshop — Defining KPIs for a Strategy Map: Required Practical Activity — Small Working Groups: Use the Strategy Map developed on Day One. For each strategic objective — 4 to 6 objectives — propose two KPIs. Define the formula, data source, measurement frequency, unit of measurement, current value, and target. Enter the information into an Excel KPI Register template. Discuss the balance between leading and lagging indicators.

Day Three: Setting Targets and Initiatives and Linking Incentives

Setting Baselines and Targets for Each KPI

Setting Baselines and Targets for Each KPI: Baseline: The current value of the indicator, usually based on data from the previous year or quarter. Target: The desired value to be achieved within a specific period, usually one year. How to Set Targets: Internal Benchmarking: Comparing current performance with historical performance. Competitive Benchmarking: Comparing performance with leading competitors in the industry. Stretch Target: Ambitious targets that require significant change. Gap: Target - Baseline.

Developing Initiatives — Performance Improvement Projects

Developing Initiatives — Performance Improvement Projects: Definition of an Initiative: A specific project, program, or activity designed to improve the performance of a particular KPI. Elements of an Initiative: Name. Description. Link to the KPI. Budget. Timeline — start and end dates. Owner. Key milestones. Risks. Examples of Initiatives: To improve customer satisfaction: implementing a Customer Relationship Management — CRM — system. To reduce costs: renegotiating with suppliers. To improve product quality: training employees on Six Sigma.

Linking the Balanced Scorecard to Rewards and Incentives

Linking the Balanced Scorecard to Rewards and Incentives: Principle of Linking Performance to Rewards: Motivating behaviors that support the strategy. Incentive Systems: Short-Term Incentives — Annual: A percentage of salary based on achieving BSC objectives, usually 20–40%. Long-Term Incentives: Shares, stock options, and performance contracts. Setting Weights: Distribute the relative weight for each perspective, for example: Financial 30%, Customer 25%, Internal Processes 25%, and Learning and Growth 20%. Evaluation Levels: Company level. Department level. Individual level — Personal Balanced Scorecard. Challenges: Setting fair targets, avoiding manipulation, and ensuring data availability.

Practical Workshop: Setting Targets and Initiatives for a Specific KPI

Practical Workshop — Setting Targets and Initiatives for a Specific KPI: Required Practical Activity — Small Working Groups: Select one KPI from the Day Two workshop, such as Customer Satisfaction — CSAT. Use a current value of 75% and a target of 85% within one year. Propose three initiatives to achieve the target, such as training customer service employees, developing a complaints application, and reducing response time. For each initiative, define the estimated budget, timeline in months, and responsible owner. Propose a mechanism for linking the Customer Service Manager’s reward to this target.

Personal Balanced Scorecard

Personal Balanced Scorecard: Linking the Individual to the Strategy: Individual objectives are derived from departmental objectives, which are in turn derived from company objectives. Personal Balanced Scorecard Template: Financial Objectives: Such as achieving sales of a specific value. Internal Customer Objectives: Such as colleague satisfaction. Process Objectives: Such as completing projects on time. Learning Objectives: Such as completing a professional certification. Example for a Sales Employee: Financial: Achieve a sales target of SAR 5 million. Customer: Customer satisfaction above 90%. Processes: Submit accurate weekly reports. Learning: Attend a negotiation workshop.

Day Four: Implementing and Monitoring the BSC — Technical Tools and Dashboards

Data Sources and Information Systems for BSC

Data Sources and Information Systems for BSC: Internal Data Sources: Accounting system — ERP. Customer Relationship Management system — CRM. Human Resource Information System — HRIS. Quality management system. Production system. External Data Sources: Customer surveys. Market research. Competitor data. Data Challenges: Data availability, as some indicators may not already exist. Data accuracy. Data timeliness. Data Collection Mechanism: Assign a Data Owner for each indicator and define a data collection schedule, whether monthly or quarterly.

Dashboards and Visualizations

Dashboards and Visualizations: Types of Dashboards: Strategic Dashboard: Designed for executive managers and focuses on strategic objectives and key trends. Tactical Dashboard: Designed for middle managers and provides details on operational performance. Operational Dashboard: Designed for supervisors and displays daily data. Examples of Dashboard Tools: Excel with Power Pivot and Power View. Power BI, available with Microsoft 365 licensing. Tableau. Specialized BSC systems such as Corporater, QuickScore, ActiveStrategy, and ClearPoint Strategy.

Performance Trend Analysis and Traffic Lights

Performance Trend Analysis and Traffic Lights: Using Colors — Red, Yellow, and Green: Green: Performance is at or above target, achieving 100% or more. Yellow: Performance is below target but within the warning range, between 85% and 99%. Red: Performance is significantly below target, less than 85%. Trend Analysis: Use a line chart to show monthly or quarterly performance. Determine whether the trend is upward, indicating improvement, or downward, indicating deterioration. Forecast future performance if the trend continues.

Practical Workshop: Building a BSC Dashboard Using Power BI or Excel

Practical Workshop — Building a BSC Dashboard Using Power BI or Excel: Required Practical Activity — Small Working Groups: Work with a dataset for a hypothetical company’s performance, covering four quarters and eight indicators. Use Power BI Desktop or Excel with Power Pivot. Create a dashboard that includes: Cards showing current values for key indicators, such as NPV and customer satisfaction. Line charts showing trends for each indicator. Bar charts comparing performance across periods. Color-coded indicators — Red, Yellow, and Green. A map, if geographic data is available. Add slicers to filter results by quarter or department.

Performance Review Meetings

Performance Review Meetings: Meeting Frequency: Quarterly strategic meeting — Executive Board. Monthly tactical meeting — department managers. Weekly operational meeting — teams. Review Meeting Agenda: Review red and yellow indicators. Analyze root causes of delays or underperformance. Review progress on initiatives. Make corrective decisions, such as reallocating resources, adjusting targets, or changing initiatives. Define follow-up actions. Decisions should be documented.

Day Five: Case Studies and Advanced Applications

Case Study: Implementing BSC in a Saudi Company — Plastic Factory

Case Study: Implementing BSC in a Saudi Company — Plastic Factory: This case presents how a Saudi company shifted from financial-only measurement to the Balanced Scorecard — BSC. Results: Profitability improved by 25% over two years. Customer satisfaction increased from 70% to 85%. Production cycle time was reduced by 30%. Lessons Learned: Resistance to change, the importance of employee training, and the necessity of leadership support.

Case Study: BSC in the Government Sector — Saudi Municipality

Case Study: BSC in the Government Sector — Saudi Municipality: Modified Perspectives: The Financial perspective becomes the Budget perspective. The Customer perspective becomes the Beneficiaries perspective. The Internal Processes perspective remains unchanged. The Learning and Growth perspective remains unchanged. Examples of Objectives: Increase beneficiary satisfaction with e-services. Reduce transaction processing time. Improve spending efficiency.

BSC for Small and Medium-Sized Enterprises — Simplified Version

BSC for Small and Medium-Sized Enterprises — Simplified Version: Challenges: Limited resources, lack of historical data, and difficulty linking strategy to performance indicators. Recommendations: Focus on fewer than 10 core indicators. Use Excel instead of complex systems. Start with short-term objectives, such as one-year objectives. Involve the entire team in development.

Integrating BSC with Risk Management and Quality Management — ISO 9001

Integrating BSC with Risk Management and Quality Management — ISO 9001: Integration with ISO 9001: ISO 9001:2015 requirements include defining quality objectives, monitoring processes, measuring customer satisfaction, and continuous improvement. All of these align with the BSC framework. Integration with ERM — Enterprise Risk Management: Risks can be linked to initiatives and objectives, for example, the risk of not achieving the sales target. In some BSC models, a fifth risk perspective may be added.

Final BSC Project — Comprehensive Application

Final BSC Project — Comprehensive Application: Required Practical Activity — Small Working Groups: Select a real or hypothetical organization, such as a manufacturing company, bank, hospital, or school. Develop a Strategy Map with 10–12 objectives. Define 8–10 KPIs distributed across the perspectives. For each KPI, define the baseline, target, source, and measurement frequency. Propose three key initiatives with approximate budgets. Design a dashboard using Excel or Power BI to display indicators and trends. Write a 3–5 page report summarizing the BSC and recommending its implementation. Present the project to the trainer and colleagues.

Final Assessment and Course Review

Final Assessment and Course Review: Short objective questions covering the four perspectives, Strategy Map, KPIs, initiatives, and dashboards. The session also includes a review of the key points covered over the five days.

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Overview

Program Objectives

Understand the Balanced Scorecard — BSC — model and its four perspectives — explain the four perspectives and the cause-and-effect relationships between them: Learning and Growth leads to improved Internal Processes, which leads to Customer Satisfaction, which leads to better Financial Results.
Translate the organization’s strategy into a Strategy Map — formulate strategic objectives for each perspective and link them through causal relationships. Examples of objectives include increasing market share, improving customer satisfaction, reducing production cycle time, and developing employee skills.
Select appropriate Key Performance Indicators — KPIs — for each strategic objective, select measurable indicators, both quantitative and qualitative. KPI selection criteria include SMART — Specific, Measurable, Achievable, Relevant, and Time-bound — balanced between leading and lagging indicators, and actionable.
Set Targets and Initiatives — for each indicator, define the current value — Baseline — the target value — Target — and the timeline for achievement. Identify the initiatives, projects, and programs required to improve the indicators.
Link the Balanced Scorecard to rewards and incentives — design an incentive system based on achieving BSC objectives at the organizational, departmental, and individual levels. Use the Personal Balanced Scorecard to link personal goals with the company’s strategy.
Implement and monitor the Balanced Scorecard using technical tools — use Excel, Power BI, or specialized BSC systems such as QuickScore, Corporater, and ActiveStrategy to collect data, create dashboards, and issue periodic reports.

Target Audience

Chief Executive Officers — CEOs — and senior executives.
Strategic Planning Managers.
Human Resources Managers responsible for performance management.
Quality and Organizational Excellence Managers.
Operations Managers and finance managers.
Governance and risk management officers.
Graduates of business administration and industrial engineering.

Core Competencies

Building a Strategy Map for a Real or Hypothetical Organization

A visual diagram showing the strategic objectives across the four perspectives and the cause-and-effect relationships between them.

Selecting a Balanced Set of Key Performance Indicators — 10–15 KPIs

A list containing: perspective, strategic objective, KPI, formula, measurement frequency, unit, target, and current value.

Preparing a Balanced Scorecard — BSC — Using Excel: Comprehensive Template

An Excel table containing tabs for Strategy Map, KPIs, Targets, Initiatives, and Dashboard.

Calculating the Customer Satisfaction Score — CSAT — and Net Promoter Score — NPS

Design a simple survey, calculate the average rating, and calculate the ratio of promoters to detractors.

Calculating Internal Process Efficiency Indicators, such as Cycle Time and Defects Per Million Opportunities — DPMO

Collect operational data, calculate the average time, calculate the defect rate, and convert it into Defects Per Million Opportunities — DPMO.

Preparing a Quarterly Balanced Scorecard Report

Prepare a report for company management summarizing progress toward objectives, green/red indicators, delayed initiatives, and corrective actions.

Program Outline

Day One: Fundamentals of Performance Management and the Balanced Scorecard Model

Introduction to Organizational Performance Management

The Evolution of the Balanced Scorecard — BSC

The Four Perspectives of the Balanced Scorecard

Practical Workshop: Defining Objectives for the BSC Perspectives of a Telecommunications Company

The Difference Between BSC, OKRs, and KPIs

Day Two: Building a Strategy Map and Selecting KPIs

Strategy Map — Concept and Development

How to Design a Strategy Map Using PowerPoint or a Drawing Tool

Selecting Key Performance Indicators — KPIs

Examples of KPIs for Each Perspective

Practical Workshop: Defining KPIs for a Strategy Map

Day Three: Setting Targets and Initiatives and Linking Incentives

Setting Baselines and Targets for Each KPI

Developing Initiatives — Performance Improvement Projects

Linking the Balanced Scorecard to Rewards and Incentives

Practical Workshop: Setting Targets and Initiatives for a Specific KPI

Personal Balanced Scorecard

Day Four: Implementing and Monitoring the BSC — Technical Tools and Dashboards

Data Sources and Information Systems for BSC

Dashboards and Visualizations

Performance Trend Analysis and Traffic Lights

Practical Workshop: Building a BSC Dashboard Using Power BI or Excel

Performance Review Meetings

Day Five: Case Studies and Advanced Applications

Case Study: Implementing BSC in a Saudi Company — Plastic Factory

Case Study: BSC in the Government Sector — Saudi Municipality

BSC for Small and Medium-Sized Enterprises — Simplified Version

Integrating BSC with Risk Management and Quality Management — ISO 9001

Final BSC Project — Comprehensive Application

Final Assessment and Course Review

Organizational Performance Management Using the Balanced Scorecard — BSC

Request Schedule & Quotation

Overview

Program Objectives

Target Audience

Core Competencies

Building a Strategy Map for a Real or Hypothetical Organization

Selecting a Balanced Set of Key Performance Indicators — 10–15 KPIs

Preparing a Balanced Scorecard — BSC — Using Excel: Comprehensive Template

Calculating the Customer Satisfaction Score — CSAT — and Net Promoter Score — NPS

Calculating Internal Process Efficiency Indicators, such as Cycle Time and Defects Per Million Opportunities — DPMO

Preparing a Quarterly Balanced Scorecard Report

Program Outline

Day One: Fundamentals of Performance Management and the Balanced Scorecard Model

Day Two: Building a Strategy Map and Selecting KPIs

Day Three: Setting Targets and Initiatives and Linking Incentives

Day Four: Implementing and Monitoring the BSC — Technical Tools and Dashboards

Day Five: Case Studies and Advanced Applications

More courses open for booking

Explore Our Monthly Training Schedules

Organizational Performance Management Using the Balanced Scorecard — BSC

Request Schedule & Quotation

Overview

Program Objectives

Target Audience

Core Competencies

Building a Strategy Map for a Real or Hypothetical Organization

Selecting a Balanced Set of Key Performance Indicators — 10–15 KPIs

Preparing a Balanced Scorecard — BSC — Using Excel: Comprehensive Template

Calculating the Customer Satisfaction Score — CSAT — and Net Promoter Score — NPS

Calculating Internal Process Efficiency Indicators, such as Cycle Time and Defects Per Million Opportunities — DPMO

Preparing a Quarterly Balanced Scorecard Report

Program Outline

Day One: Fundamentals of Performance Management and the Balanced Scorecard Model

Day Two: Building a Strategy Map and Selecting KPIs

Day Three: Setting Targets and Initiatives and Linking Incentives

Day Four: Implementing and Monitoring the BSC — Technical Tools and Dashboards

Day Five: Case Studies and Advanced Applications

More courses open for booking

Explore Our Monthly Training Schedules