Balance Scorecard of Ford Motors

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1. Standards to Evaluate goals: I have a lot of critical success factors to evaluate the Ford Motors goals and ensure that it gets accomplished. Some of standards are financial and others are non-financial and some of them are quantitative and others qualitative in nature. I have judged the performance goals with at least these three standards; 2.1 Profitability and Growth: Profitability is vital to success for Ford Motors. A profitable business pays interest to lenders, tax to authority and dividend to shareholders and bonuses to employees in time. It helps in satisfying all the stakeholders of FM. A profitable FM creates more opportunity for growth and a growing FM will generate further profit to satisfy the stakeholders. So,…show more content…
3.5 Budgeting: It is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending. (steven M. Sheffrin, 2003). It mainly uses on financial performance indicators. 3.6 Benchmarking: Benchmarking is a performance measurement tool, it compare the performance of FM with the industries best practices. It mainly uses both financial and non-financial performance indicators. 3.7 Balance scorecard: Balance scorecard was proposed by Kaplan and Norton, it is a performance measurement tools which focus on four different perspectives and uses financial and non-financial indicators. 3. Suitable Performance Measurement Tool: The performance measurement tool that we are using to judge the performance of Ford Motors must be match with the goals to be accomplished. The tool should also most effective in measuring the FM performance against the performance standards we have identified above. The suitable option to accomplish the strategic and operational goal and the standard of performance I have chosen Balance scorecard. 4. Selection Justification: To measure the performance of FM, Balance Scorecard ensures that “what get measured, get done”. Through balance scorecard I focus on the four perspectives of FM i.e. customer, internal, innovation and learning and financial. It is more flexible in nature to use both financial and non-financial indicators that are needed to achieve critical success
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