Reference
Strategy map and scorecard
Upon introduction of a specific BSC, a
“strategy map” and “scorecard” are created.
A “strategy map” is a communication
tool used in BSC, which presents the
business strategy of the corporation in
a visual context in order to help propagate it into the workplace.
A “scorecard” helps to manage execution of the strategy and allows PDCA to
be conducted properly.
Reference
CSF
Abbreviation for “Critical Success Factor.”
Reference
KGI
Abbreviation for “Key Goal Indicator.”
Reference
KPI
Abbreviation for “Key Performance Indicator.”
In BSC, business strategy is broken down into specific measures for daily
business and evaluated from the four perspectives of “financial”, “customer”, “business process”, and “learning and growth.”
Perspective
Description
Financial
Aims to achieve goals from a financial perspective such as
sales amount, profitability, closing account, ordinary profit, etc.
Customer
Aims to achieve goals from the perspective of consumers
and customers in terms of customer satisfaction, needs,
quality, etc. in order to realize the financial perspective.
Business process
Aims to achieve goals from the financial and customer perspectives by analyzing what kind of processes are important
and what kind of improvements are necessary in order to
achieve the financial goals and improve customer satisfaction.
Learning and growth
Aims to achieve goals in capability development and human
resource development that deal with how to raise the capability of employees, and maintain the work environment so
that the corporation provides business processes surpassing
those of rival companies, strives for customer satisfaction,
and achieves its financial goals.
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CSF
“CSF (Critical Success Factor),” which is a factor required for differentiation from rival companies and competitive superiority. A “CSF analysis” is a technique for defining the most important success factor from
among many, and it is used as a foundation for business strategy.
Numerical targets in questions such as “How much and by when?” are
called “KGI.”
In addition, more concrete targets for achieving the KGI are called “KPI”,
and these derive from the results of CSF analyses. A process of step-bystep consideration of goals is followed in order to capitalize on the CSF
and realize the business strategy.
3
Value Engineering (VE)
“Value engineering” is a technique for reducing costs without losing
product quality. It involves analyzing the functions of the product in question, improving raw materials and services, and reviewing the development process.
Implementing value engineering can result in not only reduced costs, but
also in creativity flourishing in new fields and motivation to constantly
achieve goals taking root. In order to conduct a comprehensive analysis
with diverse viewpoints, experts from different fields may be gathered or a
group with a different set of knowledge may be formed.
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