Usm&R Mobil

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)

“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…”

* The Balanced Scorecard performance and evaluation was going to be subjective because unlike quality levels, it would not be quantified except by surveys or by management opinion. Each manager at the nation, state and city levels

Based on (Marr and Creelman, 2010) found that the balanced scorecard is used to ensure high-performance

As provided in the table above. Using correlation and regression analysis, conduct a study to validate the balanced scorecard. The objective of the study is to make sure that the scorecard measures being used are

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

Balanced scorecard—A coherent set of performance measures organised into four categories. It includes traditional financial measures, but adds customer, internal business process, and learning and growth perspectives. It was developed by Robert S. Kaplan and David P. Norton in 1992. Benchmarking—A systematic approach to comparing an organisation’s performance

within the company, and 3) customer satisfaction. Through exploring these areas, I will relate it

The scorecard 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

Chavan, M 2007, "The balanced scorecard: a new challenge", _Journal of Management Development_, Vol. 28 No. 5, pp. 393-406.

Since an organization is composed of multiple levels, a scorecard must support different levels and perspectives from strategic business units and divisions, to departments, teams and individuals. To accommodate this architecture, the scorecard is structured as multiple, aggregated cubes. Each layer a nesting of the ones below. In general, the highest level cube defines the measures and dimensions that apply to the corporate level, and these drill through to divisional and departmental cubes that have a more detailed level of information (Nickols, 1999). This “artery” of the cubes lets the strategy communicate down the organization, while performance is aggregated up through the organization like blood through vein.

A theory and management approach of the Balanced Scorecard was first “proposed in the Harvard Business Review by Robert S. Kaplan & David P. Norton (1995)” (Knapp, 2001). In the book called ‘The Balances Scorecard’ Kaplan and Norton (1996) translated organization’s mission and strategy into comprehensive set of performance measures. That

“Balanced Scorecard” System (BSC) is a strategic management concept introduced by Robert Kaplan and David Norton in the early 1990s. The Balanced Scorecard (BSC) contains both financial and operational measures on customer satisfaction, internal processes, and innovation and organizational improvement activities (Kaplan, Norton, 1992).

The balanced scorecard is a performance management tool that assists in the management of an organisation’s business strategy using traditional financial measurements combined with non-financial information (Candle 2008). Kaplan and Norton (1992), the creators of the concept, introduced the business scorecard as 4 main perspectives, customer, learning and growth, financial and internal business process. They breakdown the meaning behind each perspective is as follows: The customer