Week 8 - Lesson 8
Reading Assignment
Read Chapter 13: Strategic Control
Read Chapter 14: Innovation and Entrepreneurship
Review PowerPoint slides for Chapters 13 and 14
Lesson Activity
Discussion Questions (DQ). Please post in the Discussion Forum by this week Friday 11:59 P.M. (PST).
1. Why is strategic control important in the strategy implementation process? What are the four major types of strategic control? What are the pros and cons of each?
2. The balanced scoreboard approach has gained popularity in recent years. What is this approach and how does it integrate strategic and operational control?
3. Total quality management involves a continuous improvement approach. How is continuous improvement related to innovation? What is
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Strategic thrusts and milestone reviews are two types of implementation control. First one provides information that help determine whether the overall strategy is shaping up as planned, and the second one helps with monitoring the progress of the strategy at various intervals or milestones.
2. The balanced scoreboard approach has gained popularity in recent years. What is this approach and how does it integrate strategic and operational control?
The balanced scoreboard approach is a management control system that enables companies to clarify their strategies, translate them into action, and provide quantitative feedback as to whether the strategy is creating value, leveraging core competencies, satisfying the company's customers, and generating a financial reward to its shareholders.
Just like startegic controls and comprehensive control programs, the balances scoreboard approach bring the entire management task into focus. Organizational leaders can adjust or completely change their company's strategy based on feedback from a balanced scoreboard approach as well as other strategic controls.
3. Total quality management involves a continuous improvement approach. How is continuous improvement related to innovation? What is breakthrough innovation? What are the risks and rewards associated with innovation?
Continous improvement is the process of relentlessly trying to find ways to improve and enhance company's products and
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
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.
Balanced scorecard is a methodological tool that businesses use to get a measure by which someone can determine whether the set goals have been met or exceeded. It adds non-financial metrics to traditional financial metrics to give a well-rounded view of the performance in an organization. Balanced scorecards also help organizations to predict their success in meeting their overall strategic goals.
Balanced scorecard is the traditional methods healthcare of strategy formulation for example, extensive consultation resulting in a complex detailed strategic plan. Futhermore , it needed to introduce a new approach from outside of healthcare then followed a recent merger as well as strong external influences that were impacting negatively and would continue to do so unless they developed and implemented the appropriate
The balanced scorecard is a strategic planning and management system that was developed by Dr. Robert S. Kaplan and Dr. David P. Norton in the early 1990's. Their goal was to provide organizations with a clear understanding of what to measure in order to improve performance and results (Balanced Scorecard Institute 2014). The balanced scorecard is a framework that allows an organization to measure performance and compare it to the organization’s strategic objectives and goals (Kinney and Raiborn 2013, 10).
"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
Continuous improvement is a perpetual quality management process that relies upon all stakeholders to participate in a process or activity to enhance efficiency, sustainability and quality outputs by systematically introducing small effective changes that result in improvement. By involving all stakeholders in the practice of identifying areas for improvement, the overall quality output of an organisation should gradually improve over time.
This case study is focused upon the idea of Ann Taylor’s balanced score card and control systems to guide and monitor strategy implementation in order to help it move competitively forward. It also includes analysis
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 is a general methodology that is being used to improve performance within strategic
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.
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
Definition: Popularized by Robert Kaplan and David Norton, the Balanced Scorecard is a method for monitoring whether a company is meeting or will meet its strategic objectives. Key Performance Indicators (both lagging and leading) are broken into 4 areas