Working With Complex Business Environment

1420 WordsApr 25, 20176 Pages
To cope with complex business environment, all companies need measurement and management tool to evaluate and control operations. Bernard Marr (2013) a leading business and data expert believe that if management tools are properly used they can be powerful enablers of changes and actions in companies. Currently, the world’s six most widely used management tools are as follows:Strategic Planning, Customer Relationship Management, Employee Engagement Surveys, Benchmarking, Outsourcing and Balanced Scorecard. Of which Balanced Scorecard (BSC) is an idea that has not came out for a long period but has been discussed a lot. This essay will examine the BSC approach with reference to its origin, details of implementation, benefits and…show more content…
Rigby and Bilodeau (2015) reported in Bain’s Management tools and trends survey that BSC ranked the top six worlds’ most popular tools of 2014. It also achieved high satisfaction among executives. It was noticed that the usage rates of BSC vary by regions with slightly higher usage in EMEA (44%), North America (39%) and Latin America (39%) and lower usage in APAC (28%). The BSC is widely used in all types of companies including businesses, non-profit companies and government organizations although different companies create their own unique BSC approach corresponding to their key success factors and operation mode. 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
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