Balanced Scorecard Assignment

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Why Use

If there ever was a strategic planning and management system then the balanced scorecard is truly it. It’s used widely in business, government, and non-profit establishments globally for the alignment of business functions to the vision mission and strategy of the organization, enhancement of internal and external communications and gauge the overall performance of an organization Vis-a-Vis strategic goals.

The balanced scorecard essentially measures performance by incorporating and blending non-financial and financial benchmarks as a strategy so as to render executive with a far more realistic and all-encompassing outlook of performance of an organization.

The balanced scorecard recommends that organizations be viewed from several angles. The strategy is to compile real-time data and compare and analyse the data in relation to the perspectives.

The Learning & Growth Perspective – This perspective involves training employees on corporate culture in relation to improvement both individually and professionally. In an organization where knowledge is primary, the one and only archive or resources of knowledge are the workers. In recent times with technology changing rapidly, it’s imperative that knowledge workers be involved in continuous professional education. The advice and suggestion of balanced scorecard is to mentor managers so that they allocate funds for training purposes that would be most helpful and useful. In any organization where there are knowledge workers, the success of the organization as a whole depends on growth through continuous professional education.

The Business Process Perspective – This is a perspective in relation to internal business processes. With the help of this perspective managers are better equipped with the information relevant to the performance of their business. They are also knowledgeable about whether or not their products and services are in compliance and indeed fulfill requirements of customers which are their mission. There should be preset approved and validated guidelines by those who have the process knowledge and expertise.

The Customer Perspective – Increasingly businesses in recent times have realized how vital it is to be focused on customer satisfaction. The key performance indicator that customers aren’t satisfied is they find other vendors who can fulfill their need. This is a clear indication of substandard performance leading to decline in the near future, although the financial condition currently may be positive. In terms of customer satisfaction, customer types ought to be analyzed and the processes as well as businesses provide products or services to specific group of customers.

The Financial Perspective – Availability of financial data on demand would be a necessity and priority for funding purposes at all times. Management would ensure to provide the data. As a matter of fact, financial data is often handled and processed more than is required.

As and when a corporate database is implemented, it is believed that majority of the processing would be from a central location and without human intervention. The crux of the matter though is that, as financials are emphasized, it leads to an imbalance in relation to other angles. A need may arise to incorporate additional financial data including risk assessment and cost-benefit data, belonging to this category.

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