Promotes Forward Looking Organization For Bsc

The Balanced Scorecard (BSC) is a strategic planning and management system that is used widely in different organizations all over the world. The concept was originated by Robert Kaplan and David Norton in the early 1990s. In

The use of a balanced scorecard when gauging the performance of executives at Paradigm Toys is useful because it measures several key areas that measure past and real time performance that directly affects the company. A balance scorecard can contain both financial and nonfinancial measures as well as both quantitative and qualitative performance measures. Additionally because a balance scorecard can be tailored to the business’s specific targets it can measure the substance of performance better that basic financial indicators that are usually considered the basis of performance ratings. It is important to use more than just financial indicators, because other factors, those qualitative in nature, measure how an employee does their job and gives a larger picture of how well an employee performs. For example, in the case of sales concerning installation of home improvement products one might be measured by repeat buyers or customer satisfaction of how well the salesman followed up with their sale and installation. This kind of non-financial factor can be used to measure the company’s goal of repeat buyer and customer satisfaction which can translate into future sales and growth. Financial indicators are used in similar ways, but are more quantitative in nature. The main reason to use financial indicators is because they can provide a clear picture

1. (TCO B) Identify four categories of measures that might constitute a Balanced Scorecard of performance measures and provide an example of each. Also explain how a Balanced Scorecard could assist your organization. This answer must be in your own words—significant cut and paste from the text or other sources is not acceptable. (Points : 30)

Management must ensure control over each objective by maintaining and ensuring that performance does not veer away from standard. “Controlling consists of three steps, which include (1) establishing performance standards, (2) comparing actual performance against standards, and (3) taking corrective action when necessary” (Web Books Publishing, 2010, para. 17). Performance measurement can be done in several different ways. There may be the use of financial statements, performance appraisals, customer satisfaction reports, or sales and production results. Two control techniques also

It is important to view measurements as a way of improvement. Without knowing areas of weakness how can we better our position? The author notes the importance of transformational measurements as making a difference, (Spitzer, 2007). As the organization improves upon their progress, performance measurements are an effective method of capturing progress, when performance improves so does the environment, (Spitzer, 2007). People feel good when they see positive results, (Spitzer, 2007). Measurements are very effective for establishing a steady rate of progression in reaching individual and organizational goals, (Spitzer, 2007). Measurement is life; it is something that occurs in just about everything we do, (Spitzer, 2007). Measurement is more than just numbers it also pertains to how we feel, how we interact socially and our overall health. Organizations need measurement to remain competitive, they measure productivity and marketing skills to improve their position within society, (Spitzer, 2007). In order for management to be effective, their method of measurement must be in line with the objective. The author explains that rewards are great for continued progress and motivation, but when not measured effectively it can be very disastrous, (Spitzer, 2007). Employees are rewarded for the wrong thing, which in turn sends the wrong message, (Spitzer, 2007). An

a. The BSC is a long-term vision implementation, directly linked to clearly defined, aligned business processes and activity measures. If something does not seem correct initially, the change may take some time to adapt, but the nature of the BSC is to be directly correlated with the vision and strategies of individual departments and as a company. Any adjustments necessary will be easily made because those involved with the BSC will be receiving consistent, relevant information that will meet their needs for continued success.

My research the week focuses on the importance of measurement and the different factors that play a significant role in implementing successful outcomes. The importance of identifying contributing factors reestablishes the effectiveness of measurement. Measurement in its self can only be as effective as the data collected, (Spitzer, 2007). Unfortunately, data is not always captured accurately. This is caused by not identifying intangibles that are significant to the final outcomes, (Spitzer, 2007). Intangibles are usually not integrated in the calculation, therefore skewing the accuracy of measurement. Intangibles play a significant role in capturing deviations in the measurement due to uncontrollable aspects of the business, (Spitzer,

To implement benchmarking organizations realize that performance must be measured. To select right strategies and methods for organizational competitiveness, performance in critical areas must be examined (McGaughey, 2002). The type of measurements used are also of importance. Quantitative measures are wonderful tools, but qualitative measures might be used more appropriately due to what is important not easily being quantified (McGaughey, 2002). Organizations that implement measurement should use qualitative techniques that provide a better understanding of what is being measured.

Another advantage is that it ensures that by taking in the four different aspects, that the senior managements are taking a more balanced view about the performance of the organization. It also ensures that the short, medium and long-term views are managed in a perpetual and cohesive manner. It also aligns the top level strategies with those of middle management ensuring that they are clearly connected and appropriately focused. The BSC if properly created will ensure that the organization’s performance reporting system is focused on the things that will give it the competitive advantage both in the short and long term and by realizing value for its stakeholders.

Ade Asefeso (2013), stated that ,BSC provides a framework to translate the organization strategy in to specific quantifiable performance objective that can be measured . Thus, the performance objective are measured using the four inter-connected perspective i.e. The financial perspective, customer perspective ,internal business perspective and learning and growth perspective and each perspectives explained as follows.

The BSC shares the best practices and creates a communication system worldwide. Each aspect of the card has an holder whom employees can contact to share success strategies and product fixes. BSC fosters communication, collaboration, and problem solving.

The BSC was originally developed as a performance measurement system in 1992 by Dr. Robert Kaplan and Dr. David Norton at the Harvard Business School. Unlike earlier performance measurement systems, the BSC measures performance across a number of different perspectives—a financial perspective, a customer perspective, an internal business process perspective, and an innovation and

In a firm with employees around 250, like EA consultants, a BSC system will work amazingly and effectively. BSC system is not as common in SMEs as in larger firms however these small firms and enterprises are realizing the importance of BSC system and implementing it. Measurement of performance is the first step towards management of performance indeed. When we inquired about EA’s performance management system, they started to talk about their appraisal system. Although appraisal system is in fact a part of performance management, however, performance measurement is an integral part as well.

Measure things that add value to organizational decisions. Measuring for the sake of measuring is a waste of time.

Measure things that add value to organizational decisions. Measuring for the sake of measuring is a waste of time.