Strengths And Weaknesses Of Balanced Scorecard

easu e e t tool: a o e ie of its usage a d sustai a ility

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 literature review brings up some interesting common themes and issues that run through the existing literature, research and definitions of performance management. These common themes will focus on features of performance management and its application in an organisation.

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

Since it was originally published the concept of the balanced scorecard has changed and grown significantly. The main goal of the balanced scorecard as described by Loreta Valančienė and Edita Gimžauskienė (2007) “is [to measure] consistency of organizational strategic goals and measures for their achievements”. Basically it takes into consideration other factors besides just financial reports and keeps all aspects of the business in line. An example of this

This makes the process little too complex. What they perhaps need is some benchmarking indicators to process the data objectively and to come to a conclusion not only correctly but also quickly. It is observed:

This report outlines the what the balanced scorecard is and how it is used as a tool used in the business industry. It outlines its historical development and analyses its usefulness and how it can be applied to key decisions.

The balanced scorecard brings many advantages for companies such as emphases of future organizational performance (capabilities, resources, and business processes), outcomes for customers and the growth and profitability of the organization. When the balanced scorecard is applied management members of the company can follow the results of specific objectives and

This essay examines how balanced scorecard is developed and acts as an increasingly important factor in balancing strategic objectives and measure/KPIs tools used in businesses, industry, organizations and government to integrated and aligned business vision and strategy of the organization. The balanced scorecard has changed from simple performance measurement tool to performance strategy, strategic planning and to management system that fit into current rapid change in business environment. However, this essay will only illustrate specifically in performance measurement framework using balanced scorecard and mainly focus on advantages it’s contributed to business activities. The limitation and criticism of balanced scorecard as a

This paper aims to debate, based on a literature review how relevant it is for companies to adopt the use of balanced scorecard as tool for measuring financial performance. The findings in literature shows that balanced scored restore the linkage between financial and non-financial measures in the operational and management control systems of most companies and helps them to achieve long-term strategic objectives. On the other hand, the use and importance of balanced scorecard has been evidenced through several studies but some companies still find it difficult and challenging to implement it because it suggests what to do

As mentioned in the earlier part, there are four perspectives in the balanced scorecard, which include: Financial, Customer, Internal business process as well as learning and growth. It is vital in every business to measure the outcomes after carrying out certain strategies in order to improve businesses. Often there are sayings, for eg: “if you don’t measure results, you can’t tell success from failure and thus you can’t claim or reward success or avoid unintentionally rewarding failure.” After all, in balanced scorecard, it is needed to measure the performances of the business.

The Balanced Scorecard (BSC) is one of ‘Performance Management System’ used widely around the world (Kaplan, 1993). This system is used to track the pivotal elements of a business, and allow managers to make decisions based on these measures to improve the company. Firstly, this essay will further introduce the BSC and then, its development throughout the years. Thirdly, the essay will suggest that the BSC is indeed effective as a ‘Performance Management System’ and that, lastly, it does help with the process of acquiring other companies.

A balance scorecard is an instrument managers use to gauge performance based on significant performance measures chosen by the manager. Each performance measure can be tailored to meet the specific needs of any organization. According to Cardinaels and Veen-Dirks, firms either have a list of measures or groups of measures separated into categories to evaluate performance. There are four common categories that are used to group and describe the different performance measures. The four categories are financial, customer, internal business, and learning and growth (Cardinaels & M.G. van Veen-Dirks, 2010).

A balanced scorecard can be thought of as a strategic management tool, which the management of various organizations can use to monitor how the activities of employees affect the related operations. The origin of the concept can be traced back to the 1990s when Robert Kaplan and David Norton developed and published the idea in Harvard review journal. It can transform a company’s mission and vision into objectives, which can be quantified and measured. Therefore, it can quantify financial performance, the performance of business processes in the market, innovation performance, and employee performance among others. This tool can further be defined by two characteristics. Firstly, it focuses on organizations ' main agenda. Secondly, it uses a small number of data to measure various processes. This paper seeks to determine the ideal inputs for the four major elements of the Balanced Scorecard.

The balanced scorecard was developed by Dr. Robert Kaplan and David Norton. It was initially introduced as a tool for multidimensional performance management. But over the years it has evolved into a framework for strategic planning and management. It is a performance evaluation framework which augments the performance measures related to the non-financial aspects to traditional financial metrics to give executives. Thus companies can monitor the financial aspects while simultaneously keeping in check the progress on capabilities, intangible assets acquired for the future growth. Thus the managers and the executives have a 'balanced ' view of the organization’s performance.