StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Balanced Scorecard - Essay Example

Comments (1) Cite this document
Summary
This paper provides a study of balanced scorecard measure and the significant of its measures in achieving the goals set by an organization. The most important of the company's activities lies in driving maximum level of customer satisfaction through enhanced performance on the part of the company and its people…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.1% of users find it useful
Balanced Scorecard
Read TextPreview

Extract of sample "Balanced Scorecard"

Download file to see previous pages The Balanced Scorecard is one of the contemporary performance measure systems that the managers engage to gain operational performance insights from various departments of the organization. The Balance Scorecard embraces almost all the facets of an organization and renders more valuable information to managers concerning various critical organizational decisions. Dilanthi et al. propound that, "BSC is a management framework that measures the economic and operating performance of an organization [and] is intended to link short-term operational control to the long-term vision and strategy of the business" (183). Hence, the balanced scorecard basically provides a management tool to gauge the organizational performance by means of a unique approach.
The most eminent feature of balanced scorecard measure is that rather than focusing on a single aspect, it encompasses all the major elements that have a significant impact upon of the organization's performance. Bryant, Jones and Widener (2004, p108) illustrate this point as that, "firms implement a BSC by selecting both financial and non-financial measures across four hierarchical perspectives: learning and growth, internal business processes, customer, and financial". Hence, the BSC measure rests on evaluating the performance of a firm on four distinct perspectives. Although the performance is also gauged in terms of financial perspective but it is not done exclusively. It is combined with other significant angles viz., learning and growth, customer, and internal business process etc. Dilanthi et al. suggest that, "non-financial measures, such as customer retention, employee turnover, and number of new products developed these measures serve as predictors of future financial performance" (183). It implies that even the non-financial measures in BSC contribute to the future financial success of the company.
This consideration and emphasis on non-financial elements in performance measurement also happens to be one of the major criticisms of the traditional performance measures, which led to the development of BSC measure. Yeniyurt assets that, "one major criticism to traditional metrics is that they do not consider non financial performance measures such as customer satisfaction, process efficiency and rate of innovation" (135). The Business Scorecard measures guides the organization in critical decision-making concerning employee management through learning and growth, unveiling of new products and services through internal business processes, estimating performance targets for the enhancement of customer experience and finally the financial perspective encompassing the financial position of an organization i.e., profits, losses and various costs (Bryant, Jones and Widener).
Self identifies that in BSC, "we not only decide what measures are important; we also state unequivocally what constitutes success for each measurement. each year we can literally see how well we have done." (101-102). It means that in balanced scorecard measure, an organization defines its performance measures and sets goals on the performance level to be achieved on each particular measure. This makes a company analyze its performance at the end of the year against the targets established and targets achieved so that it can realize the elements that need to ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Balanced Scorecard Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Balanced Scorecard Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from https://studentshare.org/miscellaneous/1532270-balanced-scorecard
(Balanced Scorecard Essay Example | Topics and Well Written Essays - 1250 Words)
Balanced Scorecard Essay Example | Topics and Well Written Essays - 1250 Words. https://studentshare.org/miscellaneous/1532270-balanced-scorecard.
“Balanced Scorecard Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/miscellaneous/1532270-balanced-scorecard.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
el
eloyherman added comment 3 months ago
Student rated this paper as
Great paper! Used it to finish an assignment for a miscellaneous course. It was easy as ABC, for the first time in my life.

CHECK THESE SAMPLES OF Balanced Scorecard

Balanced Scorecard

...). The most fascinating feature of a Balanced Scorecard is that a set of financial and non-financial tools are presented in a single succinct report by comparing each tool to a ‘target’ value. This strategic performance management tool was developed with intent to replace traditional operational reports and to present a concise summary that includes the most relevant information. The first versions of Balanced Scorecard held the view that its relevance was greatly related to corporate strategy and the proposed design methods. As noted by Kaplan & Norton (2001), during the initial stages, it was believed that this tool would most fit the needs and requirements of mid-sized firms and hence the model was mainly employed to measure aspects like...
8 Pages(2000 words)Essay

Corporate Balanced Scorecard

...). The balanced scorecard has long been integrated with management to make sure that the appropriate level of control is taken into consideration while obtaining corporate goals has become a primary factor to engage in maximizing operation. In various departments of an organization, the corporate balanced scorecard is a remarkable tool to help improve or ensure substantial operation that would lead to the company’s competitive advantage. For instance, in marketing department, it is important to make sure that significant information should be obtained from customers to guarantee high level of customer satisfaction and to make sure repeat purchase or positive word of mouth...
10 Pages(2500 words)Research Paper

Balanced Scorecard

...of company strategies into action. The balance scorecard seeks to operationalize organizational strategy towards achieve desired outcomes. In this case, the balance scorecard ensures that the organization realizes its vision and mission through mobilization of resources and utilizing them in line with corporate objectives and goals, both short term and long term. Through the balanced scorecard, an organization can assess the current performance situation, as well as any feedback available from previous performance, and updating corporate strategies in such a manner that it effectively eliminates any bottlenecks available. This paper will...
10 Pages(2500 words)Essay

BALANCED SCORECARD

... includes all the four perspectives of a balanced scorecard namely, the financial, customers, learning and internal business process perspectives. The purpose of this Balanced Scorecard is to look at three objectives in this organizational unit. These objectives will be measured using metrics appropriate for this discipline. Financial The primary goal or objective of this business unit is to increase the sales and add to the profits of the company. A lot of sales personnel are involved in the marketing of products of P&G and it needs to look at the objective of reducing the costs incurred in the various processes involved in this department as well. Customer Customers are the key towards the success and profitability of the company. Hence...
10 Pages(2500 words)Essay

Balanced Scorecard

...areas including customers, finance, business processes and learning and growth. Managers are usually engaged in collection of quantitative data and then analyzing it with the aim of making appropriate and long-term decisions courtesy of balanced scorecard technique. This paper will analyze five different papers, which have examined balanced scorecard through case studies, primary data collection and as well as secondary research. The papers have good insight on the applicability, advantages as well as the challenges of balanced scorecard in different organizational setups. The study will involve analysis of the aims, methods and results...
8 Pages(2000 words)Assignment

Balanced Scorecard for Banagas

...that activates in the marine industry. The company has an international presence however its performance has been found to be enhanced after the implementation and the application of Balanced Scorecard in its daily operations. In this context, the results and the outcomes of this strategy are measured and evaluated taking into account both the efficiency of the specific market as well as the findings of the empirical research and the literature regarding the specific area of knowledge. II. Balanced Scorecard as part of the corporate strategy – General Overview Balanced Scorecard was created in 1992 by Robert S. Kaplan and David Norton....
16 Pages(4000 words)Essay

Balanced Scorecard

... factors in October/November of 1995. Operations of managers consisted of explaining the principles and appearance of the scorecard. The managers secured self-learning manuals and training disks for all the participants. Time completion for the activity was only two months and the actual launch comes in January 1, 1996. The main principles of Halifax Balanced Scorecard are financial and business perspective, customer perspective, interview process perspective and staff development and improvement perspective. Concerning the timetable given to change details on each perspective, the updates on financial, business and internal perspective happen each month, while the customer perspective arrives at quarterly and six months duration. The last...
12 Pages(3000 words)Essay

Balanced Scorecard

..., and then enforce them.” Secondly, the balanced scorecard enables business enterprises to improve continually on their results and strategic performance by provide them with feedback regarding internal business processes and external outcomes. Voelpel et al. (2006) stated that the balanced scorecard is important to any organization because it is a key ingredient in any successful business. How the balanced scorecard helps in identify information requirements The balanced scorecard has four key components or perspectives that enable the management of an organisation to clarify its strategy and long-term objectives and even enforce them. These four components of the balanced scorecard also represent the integral features of an organization...
2 Pages(500 words)Research Paper

Balanced Scorecard

..., shortens response time, manages on a longer-term perspective, reduces the number of times for new product launch, and emphasizes the value of teamwork. Likewise, there is also the acknowledged benefit of maximizing the potentials of organizational resources. The balanced scorecard concept and strategic performance measure is reported to be effectively implemented by initially establishing explicitly defined goals (quality, time, performance, service); as well as translating these goals into specifically designed measures or strategies of accomplishment. Finally, it was noted that the main responsibility and applicability of the balanced scorecard in the organization...
1 Pages(250 words)Essay

Balanced scorecard

.... For the charity organization, development of balanced scorecards aids in ensuring that the mission, vision and objectives of the organization are achieved. For this case, the organization runs activities that aim at funding and taking care of children that have difficulties. The organization provides services that enable these organizations to run smoothly and ensure that these students are offered the best in relation to education. The details of this study aim at discussing a balanced score card for the charity organization and the application through which the organization can improve its services and remain focused to enriching these people with learning difficulties with the actual skills they need for everyday life. The details...
8 Pages(2000 words)Essay

Implementation and Effectiveness of Using Balanced Scoreboards

... REAEARCH PROPOSAL IMPLEMENTATION AND EFFECTIVENESS OF USING BALANCED SCOREBOARDS INTRODUCTION The use of balanced scorecards or scoreboards has been spreading through out the world of business and commerce in recent years. The scorecards are metric devices which will help the organizations to view their organizational measurements in various areas of their managements. To achieve a strategy has become the most important perspective of all the commercial and other fields related to continuous financial and successful improvement in their respective areas. The balanced scorecard methodology is a management system that provides various results of the organizations in simple format so that the executives as well as the others...
15 Pages(3750 words)Research Proposal

Balanced Scorecard - An Approach for Application in Public Sector Organization

The framework should enable the organizations to identify and understand the systemic nature of their business, the key linkages and cause and effect relationship. Through this process, the organization is able to balance its priorities, allocate the available resources for maximization of the profits of the organization and generate realistic business plans. Over the years several research studies have been conducted in this field of the management science, and models like Balanced Scorecard has been developed which are basically designed for helping the organizations in their drive towards being more competitive in achieving their goals. This paper brings out an evaluation of the Balanced Scorecard model as applied to a public s...
8 Pages(2000 words)Report

Benchmarking vs Balanced Scorecard Approach for Thorntons

...in which the company aims to: Revenue Strategy: Increase the revenue by expanding the business Product Strategy: Improving the product quality by developing new and innovative products In order to achieve the two strategies, Thorntons should use the balanced scorecard in order to have an action plan for achieving its strategies. This is based on the four perspectives: REVENUE STRATEGY PRODUCT STRATEGY Financial Perspective Customer Perspective Internal Perspective Learning & Growth Perspective Based on the above actions for achieving the strategies, a balanced scorecard is given below to have measurable account of the actions to be taken. The...
11 Pages(2750 words)Research Proposal

Balanced Scorecard Implementation: Why Does It Fail

...Companies choose to adopt the balanced scorecard approach out of a sense of commitment to the vision and strategy that is envisaged. Communication is carried out and key executives are given the responsibility of carrying out the necessary activities. Regular meetings are held in order to measure the parameters as decided at the start of the financial year. Despite doing the right things, there are a large number of failures to implement the balanced scorecard. The scorecard was designed to help companies focus on strategy since strategy implementation efforts were failing on a wide scale. The objective of this research is to highlight the factors that...
32 Pages(8000 words)Research Paper

Al-Rajhi Balanced Fund

...Al-Rajhi Balanced Fund Critically analyse the performance of Islamic funds in your chosen country and test whether they outperform the market index of the chosen country. Suggest the reasons for under/outer performance of these funds on the basis of their risk and investment Introduction Islamic funds invest in funds complying with the Shariat laws. These funds have the inherent feature of hedging as they are permitted to invest only in companies with a low debt-equity ratio. Research has highlighted that Islamic equity funds perform better than their global counterpart when the return on the international equity market is negative. As per the Shariah law these Islamic mutual funds are prohibited to invest in certificate of deposit...
12 Pages(3000 words)Case Study

Impact of Enterprise Resource Planning On Usage of Balance Scorecard Implementation

...interpretation in the forth coming sections, a few basic definitions have also been added to facilitate the study here. Table of Contents Table of Contents 2 1. Introduction to ERP 3 2. Enterprise Resource Planning Approach 5 3. ERP System Implementation 6 4. ERP System on Performance Measurements 7 5. ERP System Benefits Realization 7 6. Need for ERP system Evaluation 9 7. Introduction to Balance Scorecard approach. 10 8. A Balanced Scorecard Approach to Enterprise Systems Performance Measurement 13 9. Research on Enterprise System success and failure 15 10. Balanced Scorecard Framework 16 11. Balanced Scorecard Effectiveness 19 12. Conclusion 20 1. Introduction to ERP It is important that companies have an absolutely...
16 Pages(4000 words)Term Paper

Accounting - Balanced Scorecard Concept

... management. Despite being an endurable and successful management concept, it is misunderstood frequently. The project tries to evaluate the performance of the system. Firstly, it describes the system in details as developed by Kaplan and Norton. Then it presents how the system has evolved and been accepted in organisations widely. A number of arguments have been presented in favour of using the practice in organisations. At the same time a number of arguments have been presented which goes against it. To support the concept, the project provides examples of a number of firms which have successfully implemented the balanced scorecards. Finally, it makes an analysis of the use of the concept in the production and services sector in the world...
11 Pages(2750 words)Case Study

Accommodating Skateboarders in Balanced Manner at the Plaza Trio Renovation

...Accommodating Skateboarders in Balanced Manner at the Plaza Trio Renovation Abstract The eyesore and pedestrian problems that the Dilworth, JFK, and Municipal Services Plazas in Philadelphia have become, made the space earn several unsavory tags. This has led city officials and their planners to consider renovation, regeneration, or improvement of the area in order to address pedestrian traffic, aesthetic, sustainability, practicality, safety, and other growing concerns of stakeholders. This paper provides an overview as well as planning issues of Dilworth, JFK, and Municipal Services Plazas in Philadelphia as well as details the proposed solutions with the author’s own observation and proposal for consideration. Specifically, the problem...
13 Pages(3250 words)Assignment

The Significance of Balanced Scorecard and the Support

.... Performance Measurement If results are not measured then the success cannot be differentiated from failure, so reward for success also cannot be claimed and unintentional failure cannot be avoided. It is a process of analyzing, collecting, and reporting information related to performance of teams, individuals, organisation, etc. The criteria that is determined as capability or skill is called good performance. Performance is measured in organisation with the help of various tools or techniques. In order to access the accountability and measure the competing factors, it is very important to develop and implement a balanced scorecard in non-profit organisation, as in this case (Antarkar, and Cobbold, 2001). The financial part...
10 Pages(2500 words)Book Report/Review

Outline of Strategic Decisions - Balanced Scorecard Metrics in the Practice Rounds and Comp XM

... in its balanced scorecard. 8.1 Practice Round 8 Andrews Company adopted board differentiator strategy in its decision making. Therefore, it captured the market segment through the various product promotion techniques. However, this led to an increase in the variable costs incurred by the company. In addition, the company will focus on the agape product in the Nano segment. This would, however, result in issues with the cash flow. 2. Balanced Scorecard metrics in the Practice Rounds and Comp XM Although Product Count Result in BSC was not good in the first few rounds we manage to improve during round 5 by introducing a new product that called Apple, we develop Apple in High-End segments. After that, we also produce another product called...
12 Pages(3000 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Balanced Scorecard for FREE!

Contact Us