Balanced Scorecard Essay

“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…”

Based on (Marr and Creelman, 2010) found that the balanced scorecard is used to ensure high-performance

The balanced scorecard uses short- and long-term, internal and external, and financial and nonfinancial measures to evaluate performance. Management can analyze these measures and compare

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).

Analysis- Traditionally, the BS approach is a set of performance measures allowing management a dashboard view of their business. These performance measurements are used to aid the company in setting goals and manage the business's strategic plan. The balanced scorecard model will support the strategic plan and implementation by uniting all actions of an organization into a common understanding of the goal; it will provide feedback for both internal processes and the external outcome to improve strategic performances and results continuously. In general, the BSA is designed into four layers: 1) Translation of the vision into operational goals; 2) Communicating this vision and link to organizational and individual

Balanced Scorecard is a general methodology that is being used to improve performance within strategic

Research In Motion Limited (RIM) was founded in 1984 and is headquartered in Waterloo, Ontario, Canada but has multinational operations with offices in North America, Asia-Pacific and Europe.

Balanced scorecard—A coherent set of performance measures organised into four categories. It includes traditional financial measures, but adds customer, internal business process, and learning and growth perspectives. It was developed by Robert S. Kaplan and David P. Norton in 1992. Benchmarking—A systematic approach to comparing an organisation’s performance

Every organizations invests millions every year to gather information, be it about their own organization or about competition, in order to enhance their productivity. Organizations have learnt the importance of the intangible assets available and have started investing in them as aggressively as they would in any tangible assets. Balanced scorecard helps an organization in exploiting all these assets for its benefit. It not only gives the management a financial overview of the organization, but also from three other perspectives which include customer, internal business process and learning and growth (Kaplan & Norton, 2007).

The Cambridge Performance Measurement Design Process proposed by Neely (1996), serves as tool to improve the design of performance measurement systems. This model aims to develop a coherent and balanced system that utilizes financial and non-financial indicators and considers both, internal and external measures. Balancing performance measurements depends on to the huge extent on the successful identification of conflicting or counter-productive performance measures and their elimination.

These new systems will introduce innovations ranging from non-financial indicators of “intangible assets” and “intellectual capital” to “balanced scorecards” of integrated financial and non-financial measures. There are four advantages to using non-financial measures of performance over measurement systems that use financial data alone. The first advantage is linked to long term organizational strategy. Most financial evaluation systems focus on annual or short-term performance against an accounting yardstick, but fail to take into account customer requirements, competitors, and other non-financial objectives that may be just as crucial to “achieving profitability, competitive strength, and longer strategic goals.”

A balanced scorecard is a popular management tool that evaluates a company’s performance with both financial and nonfinancial measures (Hendricks). This concept was developed after the realization that a company could not determine its success by one factor (Manzoni 193). Organizations are complex, often consisting of multiple departments which have different goals and measures of success. Choosing one factor to explain the organization’s achievement as a whole is near impossible. “Financial indicators, for example, are typically considered to be ‘lagging indicators of performance,’ because they record

1. The implementation of the Balanced Scorecard had improved Worldclass management review practices. Previously the management review was done only with the general manager and the controller. Where as with introduction of Balanced Scorecard now management review is done with the whole management team. Furthermore the balanced scorecard practised by Worldclass essentially measures both strategic and operational targets i.e organizational and departmental.

Why Your Employees Are Not Happy and Engaged; Personal Balanced Scorecard as Roadmap for Employees Happiness and Engagement

1. The implementation of the Balanced Scorecard had improved Worldclass management review practices. Previously the management review was done only with the general manager and the controller. Where as with introduction of Balanced Scorecard now management review is done with the whole management team. Furthermore the balanced scorecard practised by Worldclass essentially measures both strategic and operational targets i.e organizational and departmental.