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GUEST ARTICLE
INDUSTRY WATCH

collection of data from an existing top organisation and prepare An internal survey within the organisation was carried out on the
a model to measure its performance and formulate strategy. three perspectives other than finance to arrive at the individual
• A simulated BSC was prepared based on primary and KPI score and overall perspective score.
secondary data*. Findings are presented in the following The survey results had adequate statistical validity and helped to
section understand the contemporary levels at which internal business
• To prepare a PSC/ BSC it is important to work with the perspective, customer perspective and learning and innovation
following was deployed.
• Goals: Brief statements that describe what must be done in In case of the financial perspective the annual reports of the
each of the four perspectives to achieve the strategic plan. company were studied for key ratios related to the other three
• Measures: Indicators to be used for monitoring success in perspectives, once again as per the BSC methodology.
achieving the goals. Three perspectives viz. customer satisfaction, internal processes
• Targets: Quantitative values that determine the success of and finance were weighted at the rate of 0.22 except Innovation
measurement. and Learning which was 0.34 %, per the BSC scoring template.
Some very interesting aspects were revealed of MCC Ltd.’s
A BSC for a Leading Construction Company in India – MCC Ltd* capability to become a front runner at the global level.
The company is one of the largest players in the engineering and
construction market India. It has been in operation for more than The findings based on the BSC criteria of MCC Ltd* and
five decades. It is internationally aggressive and has bagged Implications
several projects in MENA, African and Asian countries over the • The company was internally geared to improve operations,
past two decades. technology, and processes to drive excellence for the
However very few of its overseas projects have been as the benefit of its customers. However, in the case of value
Principal/Main Contractor. engineering improvements (a proxy for incremental
This implies that the ability of the company to be a significant innovation), the company scored the least among all KPIs
player in the international market has not been on par with ENR surveyed.
Top 20 contractors, who are global construction behemoths. • Emphasis on training and learning was noticed with
The entire simulation to preparing the conceptual framework of employees being subjected to rigorous training and
the BSC for MCC Ltd was followed as per the Kaplan and Norton skill development. However the respondents rated the
methodology. human resource processes pretty poorly, implying that
Weights were assigned to all the four perspectives as per BSC the company’s ability to attract and retain human talent
and the internal KPIs as listed in the BSC were assessed as per needed more attention.
the BSC methodology. • In case of financial perspective, the Net Profit Ratio (NPR),

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