BALANCE SCORE

CARD AT PHILIPS
By: Group-10
KOMAL
 Founded in 1891 by Gerard Philips in
Netherlands.
 A world leader in healthcare, lifestyle
and lighting.
 It integrates technologies and design into
people-centric solutions by:
 based on fundamental customer insights
and the brand promise of “sense and
simplicity”.
 MISSION

To improve the quality of people’s life through the

timely introduction of meaningful innovations.
 VISION

the world where technology increasingly touches

ery aspect of our daily lives, we will be a leading
utions provider in the areas of healthcare, lifestyle
enabling technology, aspiring to become the most
admired company in our industry as seen by our
stakeholder.”
COMPANY’S Overview

that is
market- organized
driven around
company its
a people- customer
focused, and
“Vision 2010”
markets.
strategy
establishes
the character
of Philips as
EDDIE
ACHIEVEMENTS
1927- First Radio was
introduced.
1950- First large screen
projection TV was developed.
1950(late)- transistor-based radio
stations and stereophonic sound were
introduced.
CONTD.
1963- Compact Audio Cassette for
sound recording was launched.

1965- Produced first

integrated circuit.
1967- Color TV was
introduced in Netherlands.
1970
LAUNCHED ENERGY SAVING LAMPS
GROWTH CHRONICLE
1972
Estd.A MUSIC COMPANY POLYGRAM

1974
AQUISITION OF MAGNAVOX
1975
AQUSITION OF SIGNETICS
1978
LAUNCHED LASER DISC PLAYER
1981
AQUISITION OF T.V BUSINESS OF
GTE SYLVANIA USA
1983
ACQUISITION OF LIGHTING LAMP
BUSINESS OF WESTINGHOUSE
 PHILIPS

MEDICAL
LIGHTING SYSTEMS

SEMI
CONSUMER CONDUCTORS
ELECTRONICS

DOMESTIC
APPLIANCES
COMPONENTS
&PERSONAL
CARE
LIGHTING CONSUMER DOMESTIC COMPONETS SEMI MEDICAL
ELECTRONIC APPLIANCES CONDUCTOR SYSTEMS
S &PERSONAL S
CARE
•LAMPS •CONSUMER •SHAVERS •DISPLAY •MULTI •X-RAY
•LUMINARIES T.V •BEARD COMPONENT MARKET EQUIPMENTS
•LIGHTING,E •PORTABLE TRIMMERS S PRODUCTS •IMAGING IT
LECTRONIC AUDIO •HAIR •OPTICAL •CONSUMER •HEALTH
S,GEAR •AUDIO CLIPPERS STORAGE SYSTEMS CARE
•AUTOMOTIV SYSTEMS •HAIR •MOBILE •TELECOM SERVICES
E&SPECIAL •SET TOP DRYERS DISPLAY TERMINALS •TRANSCRIPT
LIGHTING BOXES •VACCUM SYSTEMS •TELECOM ION
•BATTERIES •MP4 CLEANERS •LARGE TERMINALS SERVICES
•DVD •STEAM IRON DISPLAY •NUCLEAR
SYSTEMS •FOOD SYSTEMS MEDICINE
•REMOTE PROCESSORS •EMERGING •ULTRASOUN
CONTROLS •BLENDERS ELECTRONIC D
•LCD •COFFEE SOLUTIONS •MAGNETIC
PROJECTORS MAKERS RESONANCE
•SPEAKER •KETTLES •COMPUTED
SYSTEMS TOMOGRAPH
Y
HISTORY

Introduction : In 1990 the dismal Financial performance lead

to reconstructing of the company.

Need: To shift the focus from High Volume to high value

Business.

Introduced – BEST “Business Excellence through Speed and

Teamwork” in 1999.
BEST

 PBE – Philips Business Excellence Model

 PST – Process Survey Tools
 BSC – Balance Score Card
SHAILEE
NEED FOR BALANCE SCORECARD
In the late 1990’s the external environment was changing rapidly.

Existing business structure at Philips did not support this kind of change.

Competition from Asian Companies like Samsung and LG increased.

All these changes made Philips realise that its operations needed to be more
flexible , innovative and value added.

Focus on the removal of SILO mentality.

Reorganisation and reduction of business units.

Had an existing Corporate Quality Department functioning under the Quality

Policy Board.
 However, Philips wanted to
improve the quality of the product
even more and create more
innovative products.

For this , it introduced BEST

(Business Excellence through Speed
and Teamwork) in july 1999 ,
applicable across all processes ,
facilities and employees.

BEST involved focusing on business

prioritiers , increasing the
capability of business processes
and bringing in better team work.
 BEST

Balance Score
card

Philips
Black Busines
belts s
etc. Excelle
nce

Process survey
tools
 The Philips Business Excellence Model is based on the European
Foundation for Quality Management (EFQM).

The EFQM model is as follows:

ENABLERS RESULTS

PEOPLE PEOPLE RESULTS

POLICY and KEY

CUSTOMER
STRATEGY PERFORM
LEADERSHIP PROCESSES RELATIONS
ANCE
RESULTS

PARTNERSHIPS and
RESOURCES SOCIETY RESULTS

INNOVATION AND LEARNING

DRIVING IMPROVEMENTS
PBE CRITERIA

PROCESSES RESULTS
LEADERSHIP Achieve sustainable Measuring all the
excellent results. business results of
Define goals and
World class a company is very
show directions processes critical.
Set priorities Deliver outstanding
It determines
Lead by example results
Processes must be
business excellence
Inspire Measured by
robust , simple ,
commitment customers ,
dynamic
Manage overall Adaptable to employees, society
process chanaging business and financial
Improve over time community
PHILIPS STRATEGY EVOLUTION
High Volume Electronics (1990’s)
•Portfolio
•Restructuring
•Volatility
•Lets Make Things Better

Healthcare and lifestyle (2000’s)

One Philips
Growth
Value Creation
Sense and Simplicity
BSC
 Using it Philips aimed at communicating the
company’s vision and strategy to the
employees and letting them know the role
they require to play in realizing the mission.
POLICY DEPLOYMENT
 Translate top-level targets into operational
targets in the organization.
 It was done by encouraging constant
communication & dialog between successive
management levels in order to achieve a
consensus on the targets to be achieved and
develop better understanding between the
top level mgt, who set the strategy and the
employees who were involved in converting
the strategy into action.
CUSTOMER SATISFACTION
 It believed that if a company responds to its
customers by bringing in products, services,
and information that they require, the
customers would respond through brand
loyalty.
 Therefore, hear customer’s voice by
converting their complaints into
opportunities by acting on them.
RAVEENA
CRITICAL SUCCESS FACTORS

competen
process
ce

customer
financial
s
MEASURE PERFORMANCE/CSF’S
 Customer satisfaction
 Customer value creation
 Employee satisfaction
 Revenue growth
 Od
 Operational excellence
TARGET
 Gap between the desired performance and
existing performance was used to set
targets.
 2-4 years
 They were measurable, realistic, time based.
 Criteria: analysis of market, customer base,
brand value, innovation, performance.
BSC PERSPECTIVES
PERSPECTIVE CSF’s

COMPETENCE KNOWLEDGE
TECHNOLOGY
LEADERSHIP
TEAMWORK

PROCESSES DRIVERS FOR PERFORMANCE

CUSTOMERS VALUE PROPOSITION

FINANCIAL VALUE
GROWTH
PRODUCTIVITY
LEVELS OF BSC
TOP MGT LEVEL STRATEGIC REVIEW CARD
MIDDLE MGT LEVEL OPERATIONS REVIEW CARD
LOWER MGT LEVEL BUSINESS UNIT CARD
OTHER LEVEL EMPLOYEE CARD
DEEPSHIKHA
TOOLS:

Balance Score
card

Philips
Black Busine
belts ss
etc. Excelle
nce

Process survey
tools
IMPLEMENTING BSC

• Initiative was taken by top

management of the company

• Quality department instructed all

subsidiaries about the implementation
 Through BSC,Philips aimed at identifying the
factors that could help in achieving the
company’s strategic goals
Implementing a global BSC helped philips:
• In articulating & communicating their
strategy
• Measuring the drivers of their performance &
results
IMPROVING BSC
 Company’s literature was taken into
consideration
 Through this & employees inputs,a generic
framework was developed
 In 2000,A brochure was circulated across the
organization
 In 2001,for implementing the BSC,Philips
used a reporting system
 In 2002,Philips used a one-page strategy
document,the BSC formed a part of the
document
 CONTD.
 Philips used BBS online system
 Performance indicators & CSFs were
identified in every department,division with
the help of BBS at Philips
 In 2006,Philips created an online BSC for
each unit
KETKI
MEASURES
CONCLUSION