BALANCE SCORECARD

Balance Scorecard Premier Oil Plc

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Executive Summary

Premier oil plc is a exploration and production in the field of oil and gas exploration and the company is also listed on London stock exchange. The company is looking to increase its resource of oil and gas exploration and current resource is 527 mmboe. In this report we have analysed Premier oil plc with the aid of Balance Scorecard which is used by the directors and managers of Premier plc to align business activities to the identified vision and strategy, and to monitor performance against strategic goals. The report starts with the identification of Premier oil plc's vision and strategy which is then followed by balance scorecard and strategy map. The strategy map will be used to describe and explain how each aspect of the scorecard can assist Premier plc in achieving its goals and targets. To assess the use of Balanced Scorecards for performance management and monitoring, Premier plc will be used as a case to critically discuss and evaluate the use of balance score card. The report is then concluded by providing recommendations to the board. Providing recommendation is important as it will enable directors to understand what their future plan of action should be and how should it be carried out.

Executive Summary2

Introduction4

Discussion5

Vision and strategy of Premier oil plc5

Balance scorecard5

Financial6

Customer7

Internal business processes9

Learning and innovation perspective10

Strategy map11

Balance scorecard summary11

Recommendation12

Practical use and limitations of balance scorecard13

Conclusion14

References15

Balance Scorecard Premier Oil Plc

To- Directors

From- Management consultant

Date- 15 June 2013

Subject- Balance Scorecard Premier Oil Plc

Introduction

The concept of the balanced scorecard (BSC) was first introduced by Robert S. Kaplan and David P. Norton (1992) in their now widely cited Harvard Business Review article, “The Balanced Scorecard—Measures that Drive Performance.” The widespread adoption and use of the BSC is well documented. For example, Kaplan and Norton (2001) reported that by 2001 about 50% of the Fortune 1000 companies in North America and 40% to 45% of companies in Europe were using the BSC. The basic premise of the BSC is that financial results alone cannot capture value-creating activities (Kaplan & Norton, 2001). In other words, financial measures are lagging indicators and, as such, are not effective in identifying the drivers or activities that affect financial results. Kaplan and Norton (1992) suggested that organizations, while using financial measures, should develop a comprehensive set of additional measures to use as leading indicators, or predictors, of financial performance (Douglas, 2007).

Discussion

Vision and strategy of Premier oil plc

Vision and strategy of Premier oil plc is based on astute commercial ideas that add value to the investment of shareholders via optimal asset management, appraisal success and development and extensive exploration beyond borders. Premier oil plc's vision and strategy revolves around five main components.

Their first strategy is based on the central idea of production maximisation. The company aims to increase its short term level of production to 75000 boepd. This will be done by utilising probable and existing proven reserve base. Secondly the company aims to promote further growth by making best possible ...