Oil Production Balanced Scorecard

The complex business process of oil production gaveshareholder's value as it improves the productivity
rise to a newer concept of Balanced Scorecard in thisand revenue growth. The productivity can be
industry. Balanced Scorecard, also known as BSC, is aimproved by improving the cost structure and
performance assessment system to manage oilimproving asset utilization. But the revenue growth
assets.could be achieved by building more franchise and
A balanced scorecard, was developed by Dr. Kaplanincreasing customer values.
and Dr. Norton in 1992, is used to monitor theThe Customer perspective depends upon price of
performance of any industry and to provide a properthe products, quality of the products, time taken to
communication among the various channels into thedeliver the product, and the functions employed for
production line. A balanced scorecard is simply thethe processes improves the service attributes of the
next step of Japanese concept Quality circle, whichoil producing companies. The service and brand
empowers the employee to realize their strengthsprovided by the companies help them in a long run.
and to work on their weaknesses to overcomeThe internal perspectives of the oil production should
them, by a proper chain of communication in all thebe improved to achieve the excellence in a long run,
levels of organization of the oil producing firm. Thethat it to employ innovative processes, customer
balance scorecard provides a link between themanagement process, operations process and
strategies and performance, thence a properregulatory processes that are building the franchises,
alignment of actions to strategy and its properincreasing customer values, achieving operational
implementation.excellence and being a good neighbor of the various
Balance scorecard is highly useful in industries, as theycompanies respectively.
provide better quality, revenue, customer loyalty, andThe learning process in any industry is the most
employee knowledge. Balance scorecard differs fromimportant parameter, as it creates lots of new ideas
MIS (Management Information Systems) in variousand strategies for the production plant. The whole
ways. Executives can make use of ISHIKAWAand sole growth of the oil production depends upon
principle or cause-and-effect relationship to come upthe strategic technologies, strategic competitions and
with the proper solutions to those wrenching in the oilclimate for action, which helps the growth to be the
producing industries.maximum and to create a motivated and prepared
The Process of a BSC is basically employed in fourworkforce to make the scorecard balanced and to
step process:achieve the best from the technique.
1) DevelopingThere are several evidences of balanced scorecard
2) Mappingutilization in oil companies which helped them to get
3) Cascadingthe boom. Like, a US oil producing company, going
4) Executingdown in income by 13% in last 5 years, and after the
The process is employed in the plant to achieveimplementation of BSC, they expect to add $ 350
excellence, by improving excellence in communicationmillion over the next 10 years. Another example in
in the layout, finding the proper causes of thethe same process line was of a Teekay shipping
problems and then obtaining the optimum solution toCanada Ltd. Teekay shipping is an essential marine link
that problem. After proper execution of BSC, it willin the global energy supply chain, serving the world's
measure the performance of the oil producingleading and oil and gas companies. They were very
industry in financial as well as non financial visions,keen to improve the performance of the company
some of them are as follows: financial Indicators,from several years and considered balance scorecard
Customers, Education and Growth and Internalas an outstanding tool in assertion to promote the
Processes.concept as well as providing real time performance
The Financial Indicators of BSC improves thedata through out global organization.