The Balance Score Card Is A Tool Of Strategy Performance Management

Soderberg, Kalagnanam, Sheehan, and Vaidyanathan (2011) presented the balance scorecard as a strategic planning procedural tool used by organizations to balance financial concerns, customer concerns, process concerns, and innovation concerns with the main purpose of developing appropriate strategy in favor of a more favorable market position (p. 689-690). Similarly, Lawrence and Webber (2008) illustrated

Customer performance: This measure tells the company about the view of customers regarding the company/institute

* Teams need to understand how they measure success. Will you be happy with net income to revenue percentage of 10% but a low customer satisfaction rating?

Analysis- Traditionally, the BS approach 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 strategic plan. The balanced scorecard model will support the strategic plan and implementation by uniting all actions of an organization into a common understanding of the goal; it will provide feedback for both internal processes and the external outcome to improve strategic performances and results continuously. In general, the BSA is designed into four layers: 1) Translation of the vision into operational goals; 2) Communicating this vision and link to organizational and individual

A balanced scorecard is the comprehensive collection of ongoing activities and processes that organizations use to systematically coordinate and align resources and actions with mission, vision and strategy throughout an organization making it a strategic planning and management system. (Balanced Scorecard Institute, 1998-2010). The scorecard exposes financial, customer, employee learning and growth, and internal business process objectives crucial to attaining goals of the vision and mission statements. When establishing such objectives, an evaluation of the company’s vision statement, mission statement, and furthermore, core values is

The balanced scorecard now plays an important role in organization management. It has been further identified and used as an important tool in today 's business processes. According to Eric W. Noreen et al. (2002), "a balanced scorecard consists of an integrated set of performance measures that are derived from and support a company’s strategy. A strategy is essentially a theory about how to achieve the organization’s goals" (p. 551). Previously, management had been overwhelmed with data for a long

Lipe and Salterio after considering the above issues and theories want to assess if Slovic and MacPhillamys (1974) findings are directly transferable to a BSC scenario, they have reasons to believe that the reliance on common measures may not be so obvious with regard to BSC results; due to managers better understanding their business units and being able to analyse them individually should reduce their emphasis on common measures.

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.

Looking at these individually, the internal component focuses on the performance of internal processes that drive the business. Internal measures would include quality levels, productivity, cycle time and cost. Within innovation and learning the emphasis is on the future success of the organizations people and infrastructure. The key performance measures would be focused on employee satisfaction, market innovation and skills development. The financial component measures the results that matters the most to the organizations shareholders. These measures include profitability revenue growth, return on investment, economic value added and overall shareholder value. The last component which focuses on the customer is needs, satisfaction and market share that would be focused on satisfaction ratings and repeat business (Evan 2005).

In the modern business and organizational environment, particularly as a result of globalization, competition equates performance. 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. This tool also provides the organization with a tool that takes vision and moves it to strategy, and the conversely, strategy into tactics. BSA supports planning and unites the organization into a more singular vision and common goal. It also allows for both internal and external feedback so that performances and results continue to evolve and improve.

Performance management systems are often designed to enable organizations to plan, measure and control their performance, so that decisions, resources and activities can be better aligned with business strategies to achieve desired results and create shareholder value. The Balanced Scorecard is a performance tool using financial and nonfinancial measures. It provides an organization with ways to develop and evaluate strategic objectives and goals. For the past two decades, the Balanced Scorecard (BSC) has been proposed as an integrated framework for the implementation of

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

More importantly, the BSC helps in motivating and educating the employees (Qin, Atkins and Yu 2013). This essay critically evaluates the use of the balanced scorecard (BSC) as a performance measurement tool.

This is where businesses focuses on identifying characteristic found to be most valued by customer in reaching their level of satisfaction. These characteristic form the perspectives of customers and establish the basis of customer view of such business in fulfilling their needs or perspectives. They can be base on factors of price, quality, and on-time delivery and customers services. Businesses would depend on employees to deliver quality services and likewise forming an enduring relationship with customers to maintain customer loyalty and increase market share. The strategic objective would be to providing quality services, products and increase efficient. For this to be achieved they would identify key variables relating to the factors identify such as improvement in quality, new features and low prices along with follow after care services of periodic maintenance. They can further undertake strategy of giving regular customer credit agreement and generous term under which customers return or exchange merchandise to maintain customer loyalty. This would be as a means to align