Balanced Scorecard Journal

“The balanced scorecard should translate a business unit’s mission and strategy into tangible objectives and measures. The measures represent a balance between external measures for shareholders and customers and internal measures of critical business processes, innovation and learning and growth. The measures are balance between outcome measures, the results of past efforts, and the measures that drive future performance. And the scorecard is balanced between objective, easily quantified outcome measures and subjective, somewhat judgmental, performance…”

A balanced scorecard is a tool to provide management a way to bridge the gap between the organization’s strategy and vision and the operational processes used to do business. It enables the company to look at more than just the financial targets, but to include nonfinancial measures such as customer service, internal business processes and more. These intangible measures provide better focus on the organization’s long-term strategies. This paper is an attempt to analyze Frieda Fizz decision to utilize a balanced scorecard as they expand into new geographic areas. The strengths and weaknesses of each perspective are discussed along with the pros and cons of using

The balanced scorecard is a strategic planning and management system that was developed by Dr. Robert S. Kaplan and Dr. David P. Norton in the early 1990's. Their goal was to provide organizations with a clear understanding of what to measure in order to improve performance and results (Balanced Scorecard Institute 2014). The balanced scorecard is a framework that allows an organization to measure performance and compare it to the organization’s strategic objectives and goals (Kinney and Raiborn 2013, 10).

The balanced scorecard shows the innovation, finance, learning and customers as well to gain the goals associated with this paradigm. In the second column the, measures are there to achieve the goals set in the first column. It extracted through management information knowledge and the environment scanning after research (Whitaker, 2016, pg 131).

Introduction- To be competitive, organizations must be both strategic and tactical to the nth degree, must be proactive rather than reactive, and must find a way to measure this easily and accurately. One way to accomplish this is through a Balanced Scorecard approach; a tool often viewed as one of the best tools that helps organizations translate strategy into performance. In general the BSA (Balanced Scorecard Approach) allows for a clear strategic and tactical directions for the organization, retains financial measurements in a summation along with their links to performance, and highlights an important and robust measurement system that links and integrates customers, stakeholders, processes, resources, and performance into single measurement strategy.

The Balanced Scorecard Institute reports that in the 1950’s General Electric was the first to use the Balanced Scorecard approach, but it was not until the 1990’s when Dr. Robert Kaplan a Harvard Business School professor and Dr. David Norton officially titled it the Balanced Scorecard. Once used as only a measurement tool for organizations, it is now a complete strategic planning and management system (Balanced Scorecard Institute, n.d.). Originally, businesses looked at the financial reports to distinguish whether it was a quality company or not. Kaplan and Norton however believed the financial reports only showed past history and an organization must also track how it is performing currently and look at ways to constantly improve future performance. Kaplan and Norton established there are four business segments or perspectives to measure and make improvements on. The four segments

A balanced scorecard is the comprehensive collection of ongoing activities and processes that organizations use to systematically coordinate and align resources and actions with mission, vision and strategy throughout an organization making it a strategic planning and management system. (Balanced Scorecard Institute, 1998-2010). The scorecard exposes financial, customer, employee learning and growth, and internal business process objectives crucial to attaining goals of the vision and mission statements. When establishing such objectives, an evaluation of the company’s vision statement, mission statement, and furthermore, core values is

General Dynamic’s core business strategy is customer value proposition, which includes customer relations, product and service standards, and the company’s perceived image. According to General Dynamic’s 2012 Annual Report, 66 % of their revenue was from the U.S. Government, another 13 percent were from U.S. commercial customers, 8% were from international defense customers, and the final 13% are from international commercial customers. General Dynamic’s diverse customer’s base has separated itself from their competitors to attract, retain, and establish a relationship with targeted customers. Since the U.S. Department of Defense (DOD) and the intelligence division are our primary customers creating a deep relationship with

Kaplan, R.S., & Norton, D.P. (1996, January-February). Using the Balanced Scorecard as a Strategic Management System. Harvard Business Review, 74(1), 75-85. ESBCO Host.

A balance scorecard is essential for developing a healthy business growing place. It is a vital key for defining the goals and targets of a company as well as the vision, mission and the SWOTT Analysis. A balanced scorecard is, “A set of measures that are directly linked to a company’s strategy: financial performance, customer knowledge, internal business processes, and learning and growth” (Pearce & Robinson, 2013, p. 194). This company will relate the in-building turbines values, mission, vision and SWOTT Analysis with the four perspectives of the scorecard (financial performance, customer knowledge, internal business process, and learning and

A Balanced Scorecard can be defined as a “performance management tool which began as a concept for measuring whether the smaller-scale operational activities of a company are aligned with its larger-scale objectives in terms of vision and strategy” (Wikipedia 2009, ¶ 1). Scents & Things will need to develop a balanced scorecard that will assist in meeting and help define the company’s values, mission, vision, and SWOT analysis. The balance scorecard is made up of four perspectives; financial, customer, learning and growing, and internal process. This paper will define each of the four perspectives objectives, performance measures, targets, and initiatives. The paper will also show how the perspectives relate

There is no doubt that a Balanced Scorecard is a great management tool to restructure a company’s culture and formulate an aggressive strategy. Yet, it has its weaknesses. Implementation into an existing operation is very time consuming and involves a lot of man-hours to formulate a plan so everyone understands how the tool works. Initially, when the Schmall presented “Act to Win”, to the executives, that had to go through a two

Purpose – The recent performance measurement literature suggests that organizations should put more emphasis on non-financial measures in their performance measurement systems, that organizations must use new performance measurement approaches such as the balanced scorecard and that measures should be aligned with contextual factors such as strategy and

A balanced scorecard provides managers with tools they need to be able to achieve future competitive success. A balanced scorecard translates an organisation’s mission and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system (Kaplan & Norton, 1996). The scorecard measures performance across four critical business perspectives: financial, customers, internal business processes, learning and growth.

The Balance Scorecard(BSC) model assist managers and board of directors to manage overall business by focusing into financial factors ( Profitability, cost, revenue, budgeted cost and real cost etc) as well as non-financial factors such as customer satisfaction, internal business process, innovation, learning and growth of organization. Kaplan and Norton decided to introduce concept of BSC in 1992, when they studied belief of famous British scientist, Lord Kelvin (1990) about performance improvement. As a result of this, many companies (private, public and non-profit organizations) adopted balance scorecard (BSC) model to assess their business performance. The BSC model is still used by many organizations. For-example, TESCO plc manages their business by applying BSC model. In my view, this article provides the chance to senior managers and directors who have power to influence the business performance. However, this article did not cover other important factors, for measuring the business (marketing strategies, employee satisfaction etc) to make sure how business is performing. Therefore, I have chosen this article for critical review.