Contemporary Management Technique

2730 WordsMar 20, 201211 Pages
Contemporary Management Technique John Doe ACME University Accounting and Decisions Dr. Jane Doe December 11, 2011 Introduction Gaining a competitive advantage in today’s business world can be challenging for any organization. The success of an organization may be measured from its critical success factors. According to Blocher, Stout, & Cokins (2010), critical success factors (CSF), sometimes referred as value propositions, represents the critical process in an organization that delivers value to customers (p. 35). An executive committee responsible for developing the vision and mission statements of an organization must understand what value is. Value is the “worth in usefulness or importance to the possessor; utility or merit”…show more content…
88). According to Blocher, Stout, & Cokins (2010), the balanced scorecard measures four different categories: customer satisfaction, financial performance, internal business processes, and learning and innovation. In-Depth Analysis of BSC The BSC should not be considered a new concept, but rather builds on existing methods such as total quality management, continuous improvement, employee empowerment, and other systems (Xu & Yeh, 2011). The BSC can be viewed as an accounting report that focuses on the previously mentioned categories. The BSC was put forward by Robert S. Kaplan and David P. Norton in their Theory of Performance Evaluation in 1990’s (Hui, 2010, p. 82-83). Customer satisfaction, internal business process, and learning and innovation are all non-financial measures in the BSC, while the other category is a financial measure. The category of customer satisfaction measures how well the organization is satisfying its customers. The organization must identify the customer along with its market segments, and also their criteria of efficiency (Valečkovç, 2009). The category of internal business process measures “…the efficiency and effectiveness with which the firm produces the product or service” (Blocher, Stout, & Cokins, 2010, p. 11). It is important for the organization to establish the main internal processes because those processes are important for reaching the desired results of the organizations (Valečkovç, 2009). The category of learning and
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