Assignment: Week 22

What is your understanding on the Balanced Score Card approach? Bow useful is it for the companies?

Balance Score Card approach is a strategic planning and management system that is used by the very body from industry to government to nonprofit organization throughout the world to coordinate the organizational activities with its mission, vision, goals and strategies and improve internal as well as external communications along with monitoring its overall performance. Developed by Dr Robert Kaplan and Dr David Norton as a performance measurement framework, it has evolved from its early simple performance measuring tool to full strategic planning and management system. Balanced Score Card helps to transfer the strategic planning documents of an organization to ‘matching orders’ on daily basis for the organization. This method eliminates all the disadvantages and limitations of previous management instruments and clearly directs the organizations towards its goals, helping the organizations to improve their strategic performances and results. Balance Score Card can help to transfer the strategic planning from a regular strategic exercise into the nerve center of the organization.

 Balance Score Card approach has four main perspectives as how we view the Organization. They are:

Learning and Growth: This perspective states that employee training and corporate cultural attitudes related to both individual and corporate self improvements. In an organization, knowledgeable employees are the true resources of the organization and in this changing technological era, employees also continuously need to be updated in the knowledge and skills.

Customer: It has been proven that customer focus and customer satisfaction is a must in any business. if customers aren’t satisfied with a company’s products and services, they are bound to move to other supplementary products and services. Poor performance in this sector can seriously damage the financial aspects the company. So customers should be analyzed in detail so that products and services can be provided according to their wants and desires.

Financial: Financial data are must for any organizations. Timely and accurate financial data should always be of great priority. It is only from these data that an organization can move forward with other aspects of the business.

Internal Business Process: Metrics based on internal business processes allows the managers to know how well the business is carrying on. These metrics should be carefully designed by the people who have the knowledge of the process most closely.

Present your thoughts and understanding on the article “The Strategic Management Process”?

               

References:

Performance Management. Available: https://www.opm.gov/policy-data-oversight/performance-management/reference-materials/historical/using-a-balanced-scorecard-approach-to-measure-performance/

Last accessed 19 December 2013.

List of sample KPIs in 5 perspectives of BSC. Available: http://www.bscdesigner.com/list-of-sample-kpis-in-5-perspectives-of-bsc.htm.Last accessed 19 December 2013.