BSC Flexibility & the Customer Perspective Essay

BSC Flexibility & the Customer Perspective - Essay Example David P. Norton and Dr. Robert S. Kaplan pioneered the approach in the 1990s. The case study is from the British Airport Authority (BAA) at Heathrow Airport’s Terminal 5 project. They termed their balanced scorecard as the T5 BSC. T5 was a performance management system based on key performance indicators and measures. This paper also compares the Norton’s BSC approach to the T5 BSC approach. T5 BSC based on 5 key performance indicators, 10 key measures, and 37 performance data. The performance indicators were selected as high-level quality indicators to drive the project’s objectives & requirements, identify the stakeholders, agreement of benchmarks, performance of inspections and test from the begin to the completion of the project. The indicators related tot the key measures gave general directions of the project through enablers, monitoring progress, or ascertaining outcomes. The performance data were the metrics that were measured for each stage of the projec t. Team members did this in order to monitor performance. The key measures would be regularly reported and published (Basu, Little & Millard, 2009). The main objective of any measurement system should to encourage managers and other employees to work towards implementing the organization’s strategies. Through the translation of strategy into measure of the balanced scorecard, all parties can know objectives and goals. ... roject, key performance indicators and key measures of the project were made to meet the requirements of the T5 Agreement and its complexity, spanning road, rail, and air constructions. The T5 balanced scorecard has incorporated the balancing principles of Norton’s balanced scorecard fours aspects i.e. learning & growth, customer, internal processes and financial. In the T5 BSC, the leading indicators are given by the benchmarks agreed & the verifications planned and work supervised. On the other, in Norton’s BSC, the leading indicators are given by learning & growth aspect. Considering the outcome indicators, the handover agreed and work complete in T5 can be related to the customer aspect in Norton & Kaplan BSC. Norton and Kaplan’s BSC aspect of internal process can be related to T5’s inspected and protected, and compliance assured measurement indicators. On further analysis, not all the measures as groups in each of T5 indicators act according to Kaplan and Norton’s BSC aspects. For example, the financial aspect relates to the total estimated cost of NCRs, a key measure of the compliance assured performance indicator. It can also be argued that the T5 KPIs and key measures have gaps related to the growth and financial BSC aspects but the assembly and manufacturing level performance indicators would not be expected to counter this. Kaplan and Norton’s Balanced Scorecard Aspects T5 Balanced Scorecard Customer Handovers confirmed RFT Closed outstanding work items Confirmed O&M manuals Confirmed Maintenance work plans Learning & growth Agreed test & inspection plans agreed Supervisors RFT-trained Financial Set Samples/benchmarks Total estimated cost of NCRs Internal processes Inspections with respect to the set benchmark & quality standards Checks confirming