Balanced Scorecard

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Balanced Scorecard: USPS Keller School of Management BSOP-588 Managing Quality Professor Robert Lee February 8, 2014 Introduction Performance management systems are often designed to enable organizations to plan, measure and control their performance, so that decisions, resources and activities can be better aligned with business strategies to achieve desired results and create shareholder value. The Balanced Scorecard is a performance tool using financial and nonfinancial measures. It provides an organization with ways to develop and evaluate strategic objectives and goals. For the past two decades, the Balanced Scorecard (BSC) has been proposed as an integrated framework for the implementation of…show more content…
Cost associated with the orientation and training of a new employee as well as the cost associated with employee separation can have an effect on the bottom-line. Advantages and Disadvantages of Using a Balanced Scorecard Some organizations have a difficult time establishing a process that can translate its strategic vision into concrete goals and actions. There are clearly some beneficial advantages to applying the balanced scorecard approach. Some of these benefits include gaining a cross organizational team that will open channels of communications. The company will have enthusiastic people who are focused on carrying out the organization’s mission and commitment to quality. Also, the company will gain a unique competitive advantage relating to reduce time frames, improved decisions and better solutions. Most importantly, initiatives are continually measured and evaluated against industry standards. There can be some disadvantages as well. The balanced scorecard takes a lot of planning and forethought. Defining clearly stated objectives and setting goals are crucial to the process. There can be resistance from employees or even management. Some individuals may see the implementation as a threat or indication of a lack of performance on their part. While the balanced scorecard gives an extensive overview of the organization’s performance, it does not give recommendations regarding how to resolve discovered

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