Sustainable Balanced Scorecard for Paraway - Case Study Example

SUSTAINBALE BALANCED SCORECARD FOR PARAWAY Name Lecturer Course Table of Contents EXECUTIVE SUMMARY 3 Introduction 4 Research Discussion 5 Strategy Map for Paraway Company 12 Conclusion 13 References 14 EXECUTIVE SUMMARY This study elaborates the standard balanced scorecard, its structure and the characteristic of the scorecard as well as the approaches in their design. The study then narrows its focus on the Paraway Company and the relevance of the scorecard in the operations of the Company. In this study, the objective focus considers designing the strategy map for the Paraway Company and their implication in the success of the organization. The indicators will be used to measure the progress of the Company. The paper determines the characters of the scorecard and their key concern to the organizations. The paper also outlines the impacts of the indicators onto the organization. Introduction Operations of business have become multifaceted and complex with a changing diversity. As such, it is prudent for business managers to create their business strategies accordingly in order to complete favorable in the market for he available customers. Recent studies from scholars such as Bramwell (2004) have noted that these strategies involve designing comprehensive objectives and laying down measures so that the strategies are followed accordingly. As such, Paraway Company is such a typical company that should compete favorably among other pastoral companies in their operational field. Compliance with the business key values and objectives as well as the mission and vision as Weber and Schäffer (1999) would help the company move from its functional model to a product design model. There is therefore need to integrate economic, social and environmental aspects to consider the market value and for decision making in the business (Boiral 2016). The purpose of this study is to investigate the development of the performance indicators of the sustainable management in the Paraway Company and further conduct its analysis. The main scope of the study would cover the financial aspects of the company, the customer perspective, the learning and growth as well as the internal business processes. The limitations to this report generation are that the implementation of the various perspectives is assumed to be dependent in terms of time and occurrence. However, the events are independent of each other. Consequently, as Maas et al. (2016) found, balanced scorecard does not provide a dimension of time in the causal-effect relationship. In building the model, it is assumed that the organization is in good health and comparatively stable in its development stage (Sustaining Balanced Scorecard Success 2015). Another limitation is the hierarchical model created by the scorecards that could easily lead to local optimums in the individual departments (Tieskens et al. 2017). The assumptions to this balanced scorecard are that the balanced scorecard model would be oriented towards financial measures and that it operates with key consideration to the customer satiety, internal processes, financial activities, and organization’s innovation and improvement activities (Acquaye et al. 2017). Research Discussion There is a dire need to successfully bridge the gap between the policy formulation and the subsequent satisfying implementation of these ideas (Lomas and Giampietro 2017). To successfully achieve these objectives, managers of various organizations have adopted strategic maps that serve as the accelerating factors towards achievement of the objectives (Solis 2011). What Lomas and Giampietro 2017; Solis (2011) argue about is that the execution of the goals of the management into visual achievement depend on the ability to strategize and adopt a mission, vision, and the very core strategies that define the objectives of the business. In a pyramidal view of the strategic plan, it commences with the mission that defines the existence of an organization, the key values that define what the organization consider as critical, the vision that entails the expectation and what the business would want to be. It also includes the strategy that defines the game plan to be put into play to realize different objectives (Schaltegger and Burritt 2010). These then define the strategy map that is able to give the utmost details and how the strategy is intended to be applied. It then moves to the balanced scorecard that evaluates the focus that then define the actual measures the business have to do in order to achieve the laid objectives (Bramwell, 2004). The outlined processes would then lead to the necessity of the personal attributes that are essential for the business progress and successful operation. The expected results from the above processes is to have a satisfied group of customers, strategic development to reach even further improvement in service standards, develop an effective and efficient operation of the business and a motivated workforce group of the employees in the business (Perrini et al. 2006). With reference to Paraway Pastoral company, this report develops its strategic mapping through a four step process that include specifying and overriding objective, outlining the value proposition, considering the financial strategies, and identifying customer strategies as well as execution through the internal perspective strategies (Phillips and Phillips 2011). To commence with, the key objective the Paraway Company is to operate a sustainable business in the pastoral sector with greater returns specifying a key focus on limiting and finding solutions to the risks that come up with the business. In terms of creating values, Paraway focus should be on the operations management, customer management, innovations and Regulatory as well as social requirements. According to studies such as Gray (2010) this approach involves lowering the total costs of acquiring the factors for the production through a regulatory mechanism with the suppliers to come up with a just-in-time capability. This also permits development of new ideas and inventions that would further rank it among the best pastoral company among the other competing companies (Bramwell 2004). Value creation also involve prompt delivery of high quality products to the customers. In the management of the risks, Paraway should put in place measures to evaluate the performance for the current underway improvements. It should also be able to track the benefits from the business and generate a cost justification for the expenses. In this regard, establishment of the priorities is key and remains a center a focus for the business. Still under the value creation, Tregidga and Milne (2006) noted that the company should have in place, customer management strategies that involve acquisition and retention of customers. Most important in this is creation of a relationship with the customers and ensuring the growth of the relationship with the customers. The company should also consider, under value creation, regulatory processes as well as the social factors that have an impact on the business operations. Looking at the company’s competitive framework which is to consolidate specific expertise around the product and not the function, it should ensure that these regulations entail the government provisions that regulate the business operations of the pastoral companies (Grübl 2014). The approach should be followed to ensure that the company operates within the law and have a value for the social processes as well to avoid conflict of interests (Phillips and Phillips 2011). Additionally, these regulations also narrow down to the healthy measures within the businesses ranging from the employment practices, community investment to the environmental compliance with the conservation and protection (Bebbington and Gray 2001). The second factor the study would consider is the assessment of the financial strategies. This involves determination of the revenue growth, productivity level as well as asset consumption towards productivity. The assets in general range from human capital readiness, alignment intangible assets to strategy and information capital preparedness (Solis 2010). According to Burritt et al. (2002) the human capital readiness entails building, and maintaining competency profile. As such, the business should only operate with the personnel that are interviewed and evaluated to ensure that their levels of competence are in concordance with the expectations of the business (Bramwell 2004). Through this, only the qualified personnel will get their way through into the company and that all the factors of production including the human resource are adequately provided for to reciprocate in the final products at the end of the production process. Implementation of Bramwell (2004) policy framework would enable Paraway Company to put more focus in the more demanding areas compared to the less demanding areas. This could also be in terms of the departmental financial allocations to ensure smooth running of the company. Another area of focus would be assessment of the human capital readiness (Solis 2011). Strategic policy framework involves the evaluation of the earlier laid strategic objectives. For instance, Schaltegger and Wagner (2006) noted that if a job is defined by the map but is not clearly undertaken in the firm then the business management should make response and if possible, admit new people to propel this agenda. In this regard, the employees are familiarized with the objectives of the business and are able to respond to the immediate and even the most urgent need of the company. Gray and Bebbington (2000) observed that information on the capital readiness is essential. Through it, evaluation of the technological components, the mainframes components of the company and the communication networks is made available in the business. These factors are able to impact on the business in terms of analysis of the information, and transformation of the business models into enterprises (Grübl 2015; Rodger and George 2017). Information on the capital readiness is able to generate the much crucial data used by the company to assess whether it is prudent to venture into anew area of business or keep the status quos. These levels of preparedness should form the basis of decision making on several aspects of business management in which critical analysis is required. In this set, this study evaluates teamwork and the knowledge sharing which are important in the chain of production. Understanding and operation as a unit is important with the involvement of various employees to embrace the need for a teamwork which if implemented results into increased production of the business (Kumarasiri and Gunasekarage 2017). Management focus should be on the identification of the most important factors that could lead to increased production. Among them being the teamwork and alignment of all employees toward the same direction. In this, the employees are also oriented and should share in the objectives of the business (Gusc and van Veen-Dirks 2017). Last step in the design of a strategy map for the Paraway Company would be to consider identify the themes of the business, define shareholders value gap and enumerate credit evaluation. Various approaches can be used in integration of the various aspects such as the mission, vision, strategic goals of the business, and in identification of the current market position to determine its performance (Fonseca et al. 2017). These approaches are the key to implementation of the environmental dimensions as well as the social aspects of the enterprise into creation and realization of the actual structures that are fundamental in the development of the business. The main approaches are integrating environmental and social dimensions into the concerned balanced scorecard using the four earlier points of view that the model had suggested (Grübl 2015). These four are the mission, and the vision, determination of the market position, definition of the goals of the business organization, using measures that could give the actual performance of the factors used. The second approach would be the deductive method that puts more focus on the environmental and the social aspects through the environmental and or even the social performance (Crutzen et al. 2017). In this, an assumption is made that the obtained environmental or the social scorecard is not prone to being put in place parallel to the scorecard. The third approach would involve the addition of the fifth perception that entails the implementation of the organization’s human resource department that implements the corporate social responsibilities as outlined in the company’s objectives. For this particular company, the report would use the first approach that incorporates the inclusion of the initial four aspects into play. The first approach provides a broader base that gives a better characterization of the key organizations departments. These four perspectives include the financial aspect, customer perspective, the internal processes perception, learning and the growth perspective (Solis 2011; Ng et al. 2017). The report has chosen the approach because of its broad base in coverage of the company’s aspects and the various elements of production that makes it easier to understand the operation of the company. The other approaches, even though do the same function, are limited in their key focus thus would not provide a wider scope for evaluation of the progress and achievement of the targeted objectives as they are confined to addressing the constantly changing business environment in a more flexible. The financial perspective would give the value of the shareholders, the economic value and the return on the total business investment. Secondly, it would allow analysis of the Paraway’s expenses, volume of sales as well as the total value invested. Thirdly, it provides for the measure and ability to improve the turn over through elevation of the return form the sales (Grübl 2015). The other aspect is the customer perspective these would entail a key interest in the buyers of the company’s products. In this, the planned measures aim at achieving the market success by the company. This entails provision of healthy and high quality products to the customers. It is through the company’s offer to the customers that will make Paraway competitively better than the other business in the same field. The other aspect is the internal processes perspective that provides for the significant business processes that enables the firm to realize its operations. These include the most critical elements that could permit the business achieve its goals. It therefore entails the availability of raw materials with quality control mechanisms, waste disposal strategies, and the focus on the utilization of the factors of production such as water, and energy in the production process. Last of the four is the learning and the growth perspective. This entails the machinery required to realize the functionality of the other perspectives. It considers the levels of qualification of the employees and their motivation during their stay at the company. This perspective also include the determination of the other perspectives towards realization of the goals and the objectives of Paraway Company. To achieve the objectives of the Paraway Company, this perspective assumes that the company is in position of competent and well-motivated employees who work effectively towards realization of the company’s dream (Petera et al. 2017). To determine whether the chosen objectives are fulfilled or not, the report provides a criterion that would involve administration of an expert questionnaire. This set of questions would be administered to different group of individuals whose response would be used to design an experts’ analysis results table. This table would outline the response weight of the four characterizations that were used as per the information gathered from the research questionnaire. The results for the achievement would be analyzed on a tabular form as shown below. The Characters Key projects M value Sequence Comments Financial perspective Revenue growth rate Cost management Strategies for investment Tackling risks Customer Perspective Customer satisfaction Customer profitability Customer retention rate Market share Internal Business Process Innovativeness Information system capabilities Products database management Learning and Growth Satisfaction of the employee Continuation rate of the employees Supplier management capabilities Incentives and authorization The impact of the indicators would enable identification of contribution of each unit in the production process. In this regard, the underperforming units would be adjusted to improve the production rates and the subsequent income from the increased sale. This enables the Paraway Company to remain at the top of the production list among their competitors (Rivera et al. 2017). Strategy Map for Paraway Company Conclusion Creation and applications of the Standard Balanced Scorecard as a new tool in the achievement of Paraway Company’s objectives is essential for the business evaluation especially in ensuring that the product design model concentrates decision-making. It entails the customer value and that to the shareholders in the market as well as the financial input of the company. It also involves the internal functional processes that achieve the company’s goals. Product design model also includes the learning objectives and the growth (Boiral 2016). The identification of the key elements and their evaluation as per the indicators is used to access whether the intended objective has been achieved and adjustments made to incorporate the relevant changes that need to be made. This study focused on a product design, sustainable accounting and strategic management in accounting to incorporate the environmental as well as the scale factors of the organization. It also brings about the integration aspect of various departments in the achievement of the company’s objective. Paraway is able to evaluate it progress through this with key focus on the indicators for successful compliance. This would enable Paraway focus on areas that need attention to have an increased production of high quality goods and services to its customers. References Acquaye, A., Feng, K., Oppon, E., Salhi, S., Ibn-Mohammed, T., Genovese, A. and Hubacek, K., 2017. Measuring the environmental sustainability performance of global supply chains: A multi-regional input-output analysis for carbon, sulphur oxide and water footprints. Journal of Environmental Management, 187, pp.571-585. Bebbington, J. and Gray, R., 2001. An account of sustainability: failure, success and a reconceptualization. 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