Developing a Balance Scorecard

Robert S. Kaplan and David P. Norton introduced the balanced scorecard, which supplemented traditional financial measures with criteria that measured performance from the perspectives of customers, internal business processes, and learning and growth. The scorecard enabled companies to track financial results while monitoring progress in building the capabilities they would need for growth.

Balanced scorecard is a methodological tool that businesses use to get a measure by which someone can determine whether the set goals have been met or exceeded. It adds non-financial metrics to traditional financial metrics to give a well-rounded view of the performance in an organization. Balanced scorecards also help organizations to predict their success in meeting their overall strategic goals.

There are four perspectives when it comes to balanced scorecard. First one is learning and growth which means how the information and knowledge are processed and turned into competitive advantage against other companies. Second is about product manufacturing and making sure that all the products are made the same without any defaults. Third one is about customer satisfaction and making sure that customers are happy with product, service and price. Fourth one is about financial performance and making sure that company’s financial data is used properly.

“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…”

Balanced scorecard is the traditional methods healthcare of strategy formulation for example, extensive consultation resulting in a complex detailed strategic plan. Futhermore , it needed to introduce a new approach from outside of healthcare then followed a recent merger as well as strong external influences that were impacting negatively and would continue to do so unless they developed and implemented the appropriate

The balanced scorecard is a strategic planning and management system is used to help align activities of the vision and strategy of the organization, and apply it to the overall

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 was first identified by Kaplan and Norton in 1990 as a management tool to help management to summarize the key factors to conduct a successful business, and to align the whole business operations according to the overall business strategies. Then, in the following year, they implemented the balanced scorecard in various companies to conduct the study, and it appeared that the balanced scorecard was the key to drive the performance in the companies. It provided the management all the necessary strategic information by emphasizing enablers over results and changing strategic management paradigms.

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

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).

The most important thing to having a successful business is to have the most up to date information. If you have all the information at your fingertips it can help you to make the best possible decisions. What kind of information is available and how do we sort through it and use this information? In the hospitality industry the amount of information received everyday is overwhelming, and it isn’t possible for staff to be able to sort through it and organize it properly. In the hospitality industry the information technologies are the tools that the staff uses to sort and manage the information and the balanced score card is just one

The Balanced Scorecard (BSC) is a performance measurement tool that originated in the business worlds. Performance measurement is a way to track performance over time to assess if goals are being met. Organizations measure their performance to monitor how they’re doing in achieving their overall mission and goals.