BUS443 WK4 DISC2

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Ashford University *

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443

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Management

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Jan 9, 2024

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docx

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2

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BUS443: QUALITY MGMT WK4 Disc2 In your discussion post, Explain the importance of performance measurement in organizations. o Performance measurement is important in every business considering that it is essential for long-term performance development. Effective performance measurement assists businesses in identifying their strengths and weaknesses, top performers, areas for improvement, and setting standards using historical data (O’Neil, 2018). Explain what the balanced scorecard is. Describe its four components. o According to Marr, a balanced scorecard is a strategy execution tool that, at the most basic level, helps companies to: Clarify strategy – articulate and communicate their business priorities and objectives Monitor progress – measure to what extent the priorities and strategic objectives are being delivered Define and manage action plans – ensure activities and initiatives are in place to deliver the priorities and strategic objectives. o Evans & Lindsay explain, "The purpose of the balanced scorecard is “to translate strategy into measures that uniquely communicate your vision to the organization.” o Marr addresses three components of BSC. 1. Strategy Map: shows the overall destination as well as the key objectives and priorities a company must deliver along the way.   The strategic objectives are often organized along four perspectives that support each other. Financial Perspective – outlining the financial objectives Customer Perspective – outlining the objectives related to customers and the market Internal Process Perspective – outlining the internal business process objectives Learning and Growth Perspective – outlining the objectives related to employees, culture, and information system 2.   Key Performance Indicators allow companies to measure and monitor progress against their most important strategic objectives (outlined in their
Strategy Map). Key Performance Indicators, or KPIs for short, are vital navigation instruments for managers. Each KPI needs to be defined well and includes targets or benchmarks. 3. The third component of a BSC is an Action Plan that ensures the right projects, programs or initiatives are in place to deliver each of the strategic objectives on the Strategy Map. Search and select an article about an organization that has successfully implemented the balanced scorecard and provides a summary of how the components of the scorecard have added value, improved quality, and increased performance. o As a Volkswagen customer, I chose to spotlight their company. After eight years of financial losses and market share decreases, a new management team at VW do Brazil devised and implemented a strategy map and balanced scorecard to achieve a turnaround and culture transformation. The strategy map is used by the team to align financial and project resources to the plan, as well as to encourage its more than 20,000 workers by communicating the strategy in various ways and implementing reward and recognition programs. It also sets new initiatives to coordinate the strategy's broad network of suppliers and distributors.References Evans, J. R., & Lindsay, W. M. (2020).   Managing for quality and performance excellence   (11th ed.). Cengage Learning. Marr, B. (n.d.).   What is a balanced scorecard? A quick overview   (Links to an external site.) .   Bernard Marr & Co. https://www.bernardmarr.com/default.asp?contentID=973 . O'Neil, M. (2018, November 19). Performance measurement: Simplify your process with the right tools . Performance Measurement: Simplify Your Process With the Right Tools | Promises at Work. Retrieved from https://www.samewave.com/posts/performance- measurement-simplify-your-process-with-the-right-tools#:~:text=The%20importance %20of%20performance%20measurement,set%20benchmarks%20with%20historical %20data. Rietberg, B. (2021, March 18). Volkswagen – performance in the Redemption Arc . Go to Performance Magazine. Retrieved from https://www.performancemagazine.org/volkswagen-performance-redemption/
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