Balanced Scorecard Approach 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…”

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

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

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

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

The foundation of effective strategic planning framework is the inclusion of goals and objectives that capture shareholder value, customer value, process and internal operations, and learning & growth objectives for employees. All of these factors must be orchestrated around a compelling vision and mission for the business. An effective balanced scorecard can transform a diverse enterprise into a single, unified organization that strives to attain the most challenging goals and objectives together (Abernathy, 1997). For companies including We Do Your Proposal, the potential exists for delivering transformational value to customers through the use of a balanced scorecard strategy planning and management process. Balanced scorecards have been shown to continually improve the clarity of vision and probability of long-term success for even the most compel of enterprises that adopt them (Jennings, 2010).

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

The balanced scorecard is a strategic management system that helps guide corporate strategy to meet a number of disparate objectives (BSI, 2011). It does this by highlighting for managers the key objectives in a number of areas in order to find the strategy that best meets all of the objectives. These areas are the financial, customer, learning and growth, and internal business processes. Kaplan and Norton (2004) make the case that in order to create value, three behaviors are important focusing on the customer, being creative and innovative and delivering results. Most of the measures in the balanced scorecard will relate to this underlying philosophy.

Quality and the Balanced Scorecard Approach: Customer satisfaction, both internal and external, is an important component of a Balanced Scorecard. A Balanced Scorecard approach (BSA) is often seen as one of the key tools that translate strategy into performance. The balanced scorecard model is a clear direction outlining what the organization should measure to balance the financial output. The scorecard retains financial measurement as a summary of their business performance (Kocakulah and Austill, 2007). Moreover, the scorecard will highlight an integrated set of measurement that will link customers, processes, resources, and performance to long-term financial success. The balanced scorecard is a tool that provides the company the framework that translates vision and strategy into actionable tasks. The scorecard 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

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.

The balanced scorecard can act as different roles in a company. When acting as a measurement of performance, BSC follows two steps. Firstly, it draws objectives and measures from the company’s overall strategy. In other worlds, it converts the vague strategy into detailed actions. Then, by using these objectives and measures as a benchmark, the performance are evaluated from four different aspects including the financial, customer, internal-business-process and learning and growth perspective (Kaplan and Norton, 1996). The financial perspective concentrates on financial health of a company, it is the most direct way for executives to measure organization performance. Usually, the good performance of the other three perspectives of the scorecard will lead to good results of financial performance as the four perspectives are interrelated. In terms of

The balanced scorecard is a strategic measurement strategy used in business and government as a measurement tool. The balanced scorecard should reflect businesses plans and strategic goals. The balance scorecard “was originated by Drs. Robert Kaplan (Harvard Business School) and David Norton (n.n October 8th, 2015). Balanced scorecard is used by managers not only to measure performance but to align their goals and execute the visions and missions of any agency. The balanced scorecard include metrics in different perspective views, these include “The learning and growth perspective, the business process perspective, the customer perspective and the financial perspective”.

These four strategies can now be broken down into strategic objectives while performance measures are developed for each. Using the balanced scorecard, we can link strategic objectives with shareholder value maximization. This is balanced between short and long term financial and non-financial measures and internal and external performance perspectives. We can see how our business strategy provides a coordinated set of actions that are based upon the company's core competencies, will guide behavior toward achieving performance goals, and fit existing external environmental conditions.

Kaplan and David P. Norton stated that the balanced scorecard is defined as the translation of an organization’s mission and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system.” (Kaplan, R.S. and Norton, D.P. 1996)

Management makes plans and measures performance against targets. Many organizations have struggled to integrate the information requirements of the balanced scorecard into their strategic management system. The information necessary for the balanced scorecard includes nonfinancial information (measures) that drive financial performance. The purpose of this paper is to modify the REA framework as to include the financial and nonfinancial information that maps to the balanced scorecard in terms of resources, events, and agents. Most of the balanced scorecard is already supported by the REA framework. To view this information in