The Characteristics Of Balance Scorecard

Beard, D. F. (2009.). Successful applications of the balanced scorecard in higher education. Journal of Education for Business, 84(5), 275-282. Retrieved from http://go.galegroup.com.ezproxy.liberty.edu:2048/ps/i.

The Balanced Scorecard framework was first introduced in the 1992 Harvard Business review article, ‘The Balanced Scorecard—Measures that Drive Performance.’ (Kaplan 2006) The purpose of the Balanced Scorecard is to harmonise the corporation’s strategy, operational objectives and performance measures so that they can be controlled to achieve goals. (Stevanovic et al. 2012, p.261) The BSC can be conceptualized as, “…a management system, which is structured according to the logic of the cyber-netic management circle (“plan-do-check-act”) (Bieker 2002, p.2) The model usually measures four core domains organised into quadrants; the customer perspective, internal business perspective, innovation and learning perspective, and the financial perspective. Each closely relating to a recognised aspect of firm performance. (Kaplan & Norton 2005) As seen in the figure below, the scorecard is organised such that the interrelationship between these variables as well as comparison between goals and measures are easily seen.

2000 studies have been published on job satisfaction since the 1950’s (Kahn, 1972). Job satisfaction refers to an employee’s feelings towards their job based on the comparison between actual versus desired outcomes (Locke, 1969). Each individual experiences various levels of job satisfaction due to their different expectations towards their job

“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…”

On the other hand, others posit that using an aggregated measure can cloud the actual causes of satisfaction, leading to unsound generalisation of employee satisfaction (Rose, 2003). The author further argues that proper aggregation of job satisfaction measures should ideally be done through the use of a composite index that includes a wide range of indicators of job satisfaction. However, in a later study, Rose (2005) also points to the significance of performing a detailed analysis of job satisfaction. The former approach is preferred for this study as it is follows closely on the work done by Brown et al. (2008). Job satisfaction is linked to the sense of achievement with work; the level of a influence work; and with pay. These key facets of satisfaction are discussed in our analysis and examined empirically. Also, achieving a fulfilling employment and providing workers with adequate control and influence on their work are significant for improving job satisfaction (Layard, 2005).

"This system should be tailored to suit the company’s corporate culture, capabilities, information system, technological level of development etc" (Malvutova, 2013) because it is a framework that is aligned throughout the entire organization. The balance scorecard is so vital that in order to produce the best quality performance, it has no limits and reaches down to a hospital department level (Pane, 2011). Pane gives an example in his article of how the balanced scorecard "can be used to determine whether an

Balanced Scorecard is a general methodology that is being used to improve performance within strategic

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

This article describes the benefits and concerns of adopting balanced scorecards as a performance management tool to meet organisational missions and strategies. It discusses the areas of: financial, customer, internal business, and learning and growth perspectives and how they relate to balanced scorecards; the principles involved in using balanced scorecards; how balanced scorecards are beneficial for an organisation; the administrative support required; and the outcomes that can be achieved from employing balanced scorecards as a performance management tool.

The main goal when defining the internal process perspective was to answer the following question “To satisfy our customers, at which processes must we excel” (BSI 2009, ¶5). Scents & things strategic goals should be developed in a way that will internally meet the customer’s needs and satisfaction. All strategic goals should be defined with the purpose of keeping the company running smoothly and in a way that will help to achieve the promises being made in the mission and vision statement. The strategic goals for Scents & things are to improve business processes and efficiencies, acquire additional services and business options, and improve marketing of store and the marketing of the products and services.

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).

There is a great deal of struggles Managers face when it comes to accounting related decisions. Financial reports are often conducive in coming up with resolutions regarding company operations, but they don’t necessarily contribute to the direct goals and missions of said companies. Individuals such as Nolan Norton and Robert Kaplan were among the first group to recognize the dilemma of solely relying on financial reports and the outcome resulted in what is now known as a balanced scorecard (Bible, Kerr, & Zanini, 2006, p. 18). In an article written by Larry Bitner and Mary Myers (2010), Kaplan and Norton state that balanced scorecards are used for “translating an organization’s mission and

For this reason, the corporate should make many strategies to create more value and profit to the corporate, and the operating of the corporate should closely linked with all the strategies. So the balance scorecard created and helps the corporate to make decisions closely linked with their strategies. This paper help Mihin Airline Company to create a balance scorecard to help the performance of this airline company, and this balance scorecard has four parts: Financial Perspective, Customer Perspective, Internal Perspective, and Learning and growth Perspective.

The concept of the balance score card is similar to Proverbs 4:25 which states: “Let your eyes look straight ahead, fix your gaze directly before you” (NIV) because a BSC helps an organization gain current facts about their organization, then utilize the information to create a strategic plan for the future. Ultimately, organizations become motivated by their overall mission instead of short-term financial performance measures (Peters, 2014). Companies become forward looking and mission focused by balancing resources and focus between areas of success. Kaplan and Norton (2006) determined financial perspective, customer perspective, internal process perspective and learning and growth were

Another contribution related to the company performance can be found in Kaplan and Norton's (1992) ideas about the Balanced Scorecard and the revolution in performance measurement. This Balance Scorecard embodies key stakeholder interests in a firm specific set of measures which link important operational drivers to financial