Discussion Thread 1

.docx

School

Old Dominion University *

*We aren’t endorsed by this school

Course

650

Subject

Business

Date

Jan 9, 2024

Type

docx

Pages

Uploaded by DeanJellyfishPerson1797

Discussion Thread 1 1 Discussion Thread 1 Cassidy Hyams BUSI 650: Operations Management Dr. Mensah 05 November 2023 Author Note Cassidy Hyams I have no known conflict of interest to disclose. Correspondence to this article should be addressed to Cassidy Hyams

Discussion Thread 1 2 Email cehyams@liberty.edu Key Concept Balanced Scorecard Explanation The balanced scorecard (BSC) is a strategic planning and management system that was first introduced in the early 1990s (Kaplan & Norton, 1996). Its primary purpose is to align business activities with the organization’s vision and strategy, improve external and internal communications, and monitor organizational performance against strategic goals. The balanced scorecard achieves these goals by focusing on the four critical perspectives. The financial perspective, customer perspective, internal process perspective, and learning and growth perspective are all used to help a company operate and innovate its goals. In terms of process design the internal process perspective is directly relevant as it emphasizes the importance of having efficient and effective processes to meet the organization’s customer and financial objectives. By monitoring the internal processes, organizations can identify areas of ineffectiveness or inefficiency, and innovate or redesign processes accordingly. The balanced scorecard approach helps to ensure that the process design is not conducted in isolation but linked to the broad strategic organization’s objectives. Comparison Regarding the balanced scorecard, the textbook and research both acknowledge that many organizations rely on financial measures to determine whether their performance is positive or negative. According to our text, “Organizations now realize that no single type of measure can provide insights into all the critical areas” (Meredith & Shafer, 2023, p.36). The balanced scorecard (BSC) as discussed above not only incorporates financial measures but

Discussion Thread 1 3 also considers consumer satisfaction, internal processes, and learning and growth. These are areas that traditional financial measures often overlook, but which can significantly impact an organization’s long-term success. Research has broadly supported the use of the balanced scorecard and similarly multi-perspective approaches. A study conducted by De Waal and Counet (2009) found that organizations using the balanced scorecard outperformed those that did not. Other studies have shown that the balanced scorecard can help organizations better align their activities with their strategic objectives, enhance decision-making, and improve overall performance (Malmi, 2001; Hoque, 2014). However, a more recent study by Lueg and Vu (2015) provides a comprehensive review of the research on the balanced scorecard and its effects on performance. They concluded that while the balanced scorecard can enhance performance, its effectiveness depends on the context. Specifically, they found that balanced scorecards are most beneficial in organizations that have a clear strategy, strong leadership, and a supportive culture. Article Summary The article that this discussion post focuses on is the 1996 article “Using the Balanced Scorecard as a Strategic Management”, Kaplan and Norton discuss how the balanced scorecard (BSC) can be implemented as a full-fledged strategic management system, not just as a performance measurement tool. They argue that the balanced scorecard can help organizations translate their vision and strategy into operational terms, communicate these across the organization, plan and set targets, and align strategic initiatives. The authors provide a detailed process for creating and implementing a BSC. Translating the vision

Discussion Thread 1 4 suggests that companies should use the balanced scorecard to translate their vision into measurable strategic objectives that are distributed across the four major perspectives. Communication and linking are used to emphasize the importance of communicating the scorecard throughout the organization, linking it to the individual and departmental goals. Business planning is another topic they argue as the BSC should be used to drive a business plan process, including setting targets and aligning strategic initiatives. Finally, feedback and learning should be used to facilitate strategic feedback allowing the organization to adjust its strategy based on performance feedback. The implementation of the balanced scorecard has been the subject of much subsequent research. For example, a study by Niven (2008) provides practical insights into how to implement the BSC successfully, based on case studies of successful implementation. Niven emphasizes the importance of gaining executive support, setting clear strategic objectives, aligning the organization around the balanced scorecard, and maintaining the BSC over time. Biblical Integration The Bible has several verses that come hand in hand when focusing on a balanced scorecard. The Bible teaches us about the importance of stewardship and responsible management of resources, “Moreover, it is required of stewards that they be found faithful.” (1 Corinthians 4:2). Another term is faithfulness with finances which is demonstrated by the bible encourages us to be faithful with the financial resources entrusted to us, “One who is faithful in a very little is also faithful in much, and one who is dishonest in a very little is also dishonest in much.” (Luke 16:10). Both of these illustrate that it is important to be

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version