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Project - Essay Example

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It does so by providing a synthesis of past financial performances with factors which would drive the performance in future. The proponents of this system…
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Download file to see previous pages... But in Balanced Scorecard the performance of an organization is looked into from a broader angle which spans over perspectives like: Financial, Customer, Internal business process, Learning and growth.
This is done to integrate the various complexities in the operating environment of a modern-day firm and so that the along with the financial model other factors which have crucial effects on the firm are taken into account. This tool evaluates performance of an organization and provides a framework for guidance. This system is used by organizations, private, governmental and non-profit to examine their performance in relation to their strategic objectives. Using the balanced Scorecard system, it is possible to measure and evaluate the process which is responsible for present and future value creation. This also acts as a guiding framework for managerial decision making in context of areas to be focused upon and resources to be put into in order to create value. Analysis through this system brings forth the ‘value drivers’ in an organization (Balance Scorecard basics, 2009; Kaplan R.S. and Norton D.P., 1996).
The main angles or points of discussion for the organization under the ‘customer perspective’ are identification of their target customers and also their won value proposition which would attract the customers. Identification of the value proposition is crucial because otherwise the organization would surely loose focus. Value propositions might emanate from:
Operational excellence- These kinds of organizations get their value proposition from excellence and primary focus only on their operations and generally offer no-frill products or services. Example: EasyJet the European low-cost airline.
Leadership through product- These firms depend on constant innovation and research to deliver better products to their customers. They become product leaders and lead the way in the market by always striving to and delivering ...Download file to see next pagesRead More
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