Abstract

The Government of India owned National Thermal Power Corporation of India (NTPC), a leading public sector power generation company in India, had been classified as a Maharatna, by the government. Maharatna was a title given to public sector companies that met certain parameters pertaining to net profit, turnover, and annual net-worth. Maharatna companies were given independence and were free to raise capital and take investment decisions within permitted limits without having to depend on lengthy approval processes. NTPC was one of the public sector companies which focused on developing a comprehensive approach for performance evaluation without relying completely on financial metrics alone for the analysis of the company’s financial performance. During 2016-17, the company adopted the Balanced Scorecard approach, giving equal preference customer satisfaction, improving operational efficiency, fostering innovation, and improving overall financial performance. The present case study can help in understanding the concept of the Balanced Scorecard, the rationale behind the development of the Balanced Scorecard, its features, benefits, and challenges.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• To understand the rationale for developing a Balanced Scorecard
• To understand the Balanced Scorecard as a tool of measuring organizational performance

Keywords

Balanced Scorecard; NTPC; Maharatna; Wealth Creation; Performance Measurement; Robert S. Kaplan; David P. Norton