A Project on

Balance Scorecard at Tatanet

Submitted To

Prof.Kiran Kothare

By
Sneha Kothyari C 34

In
Partial Fulfillment of the Course Requirements of the
M.M.S 4th Semester

Vidya Prasarak Mandal’s

Dr.V.N.Bedekar Institute of Management Studies,
Thane

About the Company

 Tatanet commenced its operations in December 1995 by setting up its own satellite hub
and VSAT network to provide effective & reliable wireless broadband connectivity to the
Tata Group of companies. With the accumulated expertise in network operation &
management, and system integration,

 Tatanet made a foray into the commercial market in the year 2003, and has since then
been catering to Indian enterprises and global customers with reliable and cost efficient
solutions.

 Tatanet is a leading networking solutions provider with expertise in VSAT connectivity,

system integration, managed services, and consultancy.

 Innovative solutions from Tatanet addresses communication needs of Indian and global
customers, across industries such as Banking & Financial Services, Oil & Gas,
Manufacturing & Distribution, Telecom, Education, Healthcare, Government & Defense,
Media, Travel & Hospitality and more.

 Tatanet is considered as one of the fastest growing players in the industry. Tatanet
partners with significant global players, to offer its portfolio of services.

 Innovative solutions from Tatanet addresses communication needs of Indian and global
customers, across industries Banking & Financial Services,Oil & Gas ,Manufacturing &
Distribution,Telecom, Education, Healthcare,Government & Defense, Media,Travel &
Hospitality and more.

Kaplan and Norton model (1996)

Business Processes
Drumbeat
Time, cost, quality
Balancing inputs
and outputs
The Balanced Scorecard has emerged as a proven tool in meeting the many challenges faced by
the modern organization. The origins of the Scorecard, define it, look at the system from Four
different
points of view, and consider just why the word “balance” is so important to the Balanced
Scorecard
The Balanced Scorecard was developed by Robert Kaplan, an accounting professor at Harvard
University, and David Norton, a consultant from the Boston area. In 1990, Kaplan and Norton
led a research study of a dozen companies with the purpose of exploring new methods of
performance measurement. The impetus for the study was a growing belief that financial
measures of performance were ineffective for the modern business enterprise. Representatives of
the study companies, along with Kaplan and Norton, were convinced that a reliance on financial
measures of performance was affecting their ability to create value. The group discussed a
number of possible alternatives but settled on the idea of a scorecard, featuring performance
measures capturing activities from throughout the organization—customer issues, internal
business processes, employee activities, and of course shareholder concerns. Kaplan and Norton
labeled the new tool the Balanced Scorecard and later summarized
the concept in the first of three Harvard Business Review articles, “The Balanced Scorecard—
Measures That Drive Performance.” Over the next four years, a number of organizations adopted
the Balanced Scorecard and achieved immediate results. Kaplan and Norton discovered these
organizations were not only using the Scorecard to complement financial measures with the
drivers of future performance, but they were also communicating their strategies through the
measures they selected for their Balanced Scorecard. As the Scorecard gained prominence with
organizations around the globe as a key tool in the implementation of strategy, Kaplan and
Norton summarized the concept and the learning to that point in their 1996 book, The Balanced
Scorecard.Since thattime, the Balanced Scorecard has been adopted by nearly half of the Fortune
1000 organizations, and the momentum continues unabated. So widely accepted and effective
has the Scorecard become that the Harvard Business Review recently hailed it as one of the 75
most influential ideas of the twentieth century. Once considered the exclusive domain of the for-
profit world, the Balanced Scorecard has been translated and effectively implemented in both the
nonprofit and public sectors. Success stories are beginning to accumulate and studies suggest the
Balanced Scorecard is of great benefit to both these organization types. In one public sector
study funded by the Sloan Foundation, 70 percent of respondents agreed that their governmental
entity was better off since implementing performance measures.

The Balanced Scorecard is a carefully selected set of quantifiable measures derived from an
organization’s strategy. The measures selected for the Scorecard represent a tool for leaders to
use in communicating to employees and external stakeholders the outcomes and performance
drivers by which the organization will achieve its mission and strategic objectives.

The Balanced Scorecard as a Measurement System

financial performance measures an excellent review of what has happened in the past, but they
are inadequate in addressing the real value-creating mechanisms in today’s organization—the
intangible assets such as knowledge and networks of relationships. We might call financial
measures lag indicators. They are outcomes of actions previously taken. The Balanced Scorecard
complements these lag indicators with the drivers of future economic performance, or lead
indicators. But the performance measures (both lag and lead) derived from strategy. All the
measures on the Balanced Scorecard serve as translations of the organization’s strategy. Vision
and strategy are at the center of the Balanced Scorecard system, not financial controls as we see
in many organizations.

The Balanced Scorecard as a Communication Tool

Balanced Scorecard can be described as both a pure measurement system, and its evolution into a
Strategic Management System. In particular, the most basic and powerful attribute of the entire
system. A well-constructed Scorecard eloquently describes your strategy and makes the vague
and imprecise world of visions and strategies come alive through the clear and objective
performance measures that have been chosen. Much has been written in recent years about
knowledge management strategies within organizations, and many schools of thought on the
topic exist. One common trait of all such systems may be the desire to make the implicit
knowledge held within the minds of your work force explicit and open for discussion and
learning. We live in the era of the knowledge worker, the employee who—unlike his or her
organizational predecessors who relied on the physical assets of the company—now owns the
means of production: knowledge. There may be no greater challenge facing your organization
today than codifying and acting on that knowledge. In fact, Peter Drucker, widely considered the
father of modern management, has called managing knowledge worker productivity one of the
great management challenges of the twenty-first century. Sharing Scorecard results throughout
the organization gives employees the opportunity to discuss the assumptions underlying the
strategy, learn from any unexpected results, and dialog on future modifications as necessary.
Simply understanding the firm’s strategies can unlock many hidden organizational capacities, as
employees, perhaps for the first time, know where the organization is headed and how they can
contribute during the journey

Beginning:
 Strategic plans, lots of stats collected
 Are we doing things right? (How) - process To
 Are we doing the right things? (What) - outcome
 Holistic strategic management system linked to the University’s BSC
 Cascaded to all levels and units

Then :
 What processes must function effectively to achieve the things stakeholders regard as
important - objectives
 What information could be collected to help judge the degree to which they are
operating effectively -measures

Cause-effect linkages:
 How individual staff members and teams help contribute to the overall outcomes
 Connecting the desired outcomes with the drivers of results
 E.g. shelving and student retention; Information literacy training and excellence in
teaching, learning and research
Objectives, measures and targets:

 Large numbers of objectives

 Challenge of culling them
 Measures
o Quantifiable
o Easily understood
o Relevant
o Inclusive
 Targets for each of the measures
o E.g. Shelving turnaround times, number of unfilled document delivery requests

Adoption:

 Linking the BSC to a set of initiatives and projects

 Each project with its own set of objectives, owners, timelines and targets
 Review of the project.
 Annual review by all staff – reprioritisation
 Team and individual staff adoption of their own BSCs

Balanced Scorecard System Elements

Engaged Leadership, Interactive Communications and Change Management. Developing a

scorecard system is transformational for an organization….it’s about changing hearts and minds.
Leaders who are engaged in the discovery process, communication via two-way dialogue, and
planning and managing change are important first steps in the process.

Organization Mission, Vision, and Values. Critical to an aligned organization are a well defined
mission, a shared vision, and organization values that are built on strong personal values. Most
organizations have these components, but often there is no connecting tissue among the
components that allow employees to “get it” easily. A compelling and clear “picture of the
future” (the shared vision) is where the scorecard development process starts……employee buy-
in follows as hearts and minds are engaged in creating and executing the organization’s
strategies.

Organization Pains (Weaknesses) and Enablers (Strengths). An organization environmental scan

(“climate survey”) will identify internal and external pains and enablers that will drive strategy
creation and the approach to achieving future results.

Customers and Stakeholders, and the Value Proposition. Effective strategy incorporates a view
from the customer and stakeholder perspective, and includes an understanding of customer
needs, product and service characteristics, desired relationships and the desired “corporate
image” that the organization wants to portray.
Perspectives, Strategic Themes, and Strategic Results. To view strategy through different
performance lenses (balanced scorecard perspectives), the organization needs to define strategic
perspectives, key strategies and expected results. Key strategies are the main focus areas or
“pillars of excellence” that translate business strategy into operations, and make strategy
actionable to all employees.

Strategic Objectives and Strategy Map. Strategic objectives are the building blocks of strategy
(strategy “DNA”), and objectives linked together in cause-effect relationships create a strategy
map that shows how an organization creates value for its customers and stakeholders.

Performance Measures, Targets and Thresholds. Performance measures are linked to objectives
and allow the organization to measure what matters and track progress toward desired strategic
results. Targets and thresholds provide the basis for visual interpretation of performance data, to
transform the data into business intelligence.

Strategic Initiatives. Initiatives translate strategy into operational terms, and provide a basis for
prioritizing the budget and identifying the most important projects for the organization to
undertake.

Performance Information Reporting. Automated data collection and reporting processes are used
to visualize performance information and better inform decision making throughout the
organization.

Cascade Scorecards to Departments and Individuals. Align the organization through strategy,
using the strategy map, performance measures and targets, and initiatives. Scorecards are used to
improve accountability through objective and performance measure ownership.

Rewards and Recognition. Incentives are tied to performance to make strategy actionable for
people, and help build buy-in for the behavior changes needed to create a high-performance
organization.

Evaluation. The results of the organization becoming more strategy-focused are evaluated, and
changes in strategy, measures, and initiatives reflect organization learning.

Following development of the strategic components, the scorecard system is assembled and
communicated throughout the organization.
 Tatanet VMV statements

Mission
To transform our customer’s IT & Communication  infrastructure into valuable business assets
and partner in their growth.
Vision
To be amongst the Top 5 domestic Managed Services and Solutions Providers in IT and
Communication Infrastructure by 2015
Values :
Agility , Integrity ,Empowerment, Accountability , Innovation ,Teamwork

Design of Tatanet Strategy Map

Conclusion:
BSC provided a way of articulating what, why and how well aspects of our plan and how the
plan complements the strategic plan Ease of integration into all aspects of activities
Another tool, methodology A strategic management system Tool to communicate with the
stakeholders Tool to help achieve continuous improvement Journey, not a project