Balanced scorecard essay

Balanced scorecard essay

Words4 Pages. Introduction. The balanced scorecard is a strategic planning and management system that was developed by Dr. Robert S. Kaplan and Dr. David P. Norton in the early 's. Their goal was to provide organizations with a clear understanding of what to measure in order to improve performance and results (Balanced Scorecard Institute ) The Balanced Scorecard Essays Words | 4 Pages Introduction The balanced scorecard is a strategic planning and management system that was developed by Dr. Robert S. Kaplan and Dr. David P. Norton in the early 's View Balanced Scorecard Example blogger.com from ACCT at Virtual University of Pakistan. Sam Janson June 14, Kaplan, R.S., & Norton, D.P. (, January-February). Using the balanced scorecard

The Balanced Scorecard Essays - Words | Bartleby

The unit managers, who were used to work within the top-down functional organization, needed to be transitioned from order-taking resources into strategists. Also, the new organization could not rely on the historic measurement system which relied on local balanced scorecard essay measures of low cost, availability of dealer based operations and margins and volumes.

Balanced Scorecard was hence brought in to align the functional NBUs with the organization objectives which will help imbibe strategic thinking.

The parameters included were relevant both for organization as a whole and for individual NBUs and Servcos. It was a common platform for assessment across organization.

It helped achieve shift from bottom line on to customer satisfaction. Balanced Scorecard approach put special focus on performance based evaluation rather than just revenue based ratings. Employees were evaluated not just on the revenues they earned or saved for the company but also on the level of difficulty of the task. The dealers were also rated on the strengths and the areas of improvement. This increased satisfaction within and outside the company and eventually generated revenue for the company.

Hire a subject expert to help you with Balanced Scorecard essay. Comment on the scorecard development progress. What elements seem critical to the success of a Balanced Scorecard project?

A senior level steering committee headed by the executive VP and vice presidents provided the oversight and guidance for the project. After a tentative formulation of the scorecard, eight sub teams were created enhance and refine measures. To get a customer perspective on the scorecard, the sub team visited dealers and developed a dealer development strategy. Mystery shopper program helped get the actual consumer perspective on the scorecard. The sub teams then decided on the specific strategic objectives and selected the initial set of measures for them.

The Balanced Scorecard was then launched for NBUs and Servcos. Read about dealer satisfaction. They were expected to create Balanced Scorecards on the measures suitable for their particular functions.

The monthly newsletters of NBUs published a section reviewing a single scorecard perspective and then gradually stared reporting results. They showcased stories balanced scorecard essay how departments or individuals were taking local initiatives to help organization implement its strategy.

The measures of the scorecard should be flexible enough to be relevant both at the local level and at the organization level and should provide good communication basis across, balanced scorecard essay. Is it a good idea to link the scorecard to compensation, as described in the case? What are the advantages and the risks of linking the scorecard to compensation? pages 10 marks The balanced scorecard is an ideal tool for tying compensation or incentive programs to performance as it clearly communicates divisional or departmental expectations without losing focus on their respective roles in overall organizational strategy and success, balanced scorecard essay.

Through incorporation of data relative to non-financial and financial drivers, the balanced scorecard seeks to improve systems of performance measure in the company that drive economic performance Misty Walker The broad acceptance and use of balanced scorecards owes much to their "holistic" approach to measuring business performance, which considers financial as well as a number of non-financial metrics, lead as well as lag indicators of success, balanced scorecard essay.

Ann Bares This also helped tie the compensation structure to the overall performance of the organization and the individual NBUs so that the employees work towards achieving the overall goals instead of focusing only on individual targets.

The remaining was paid as a variable pay which was linked with their performance, balanced scorecard essay. Each BU worked with metric owner to define targets for scorecard measurement. Beyond setting targets for each scorecard measure, there was also associated a performance factor representing the perceived level of difficulty of target achievement. This led to decoupling of the employee performance from the market conditions. Employees would now be evaluated on not just the target achievement but also on the effort they have put in for each win or loss.

This also inculcated a healthy completion among employees, teams and NBUs which will ultimately add to the bottom line of the company. Although a Balanced Scorecard is an effective means of evaluating performance, it too like every other system, is prone to misuse if internal checks are not in place. It is important that all employees understand the objectives and measures in the scorecard and use it judiciously. Proper checks and verification of data are important so that data is not manipulated and the decisions are made based on accurate data so as not to benefit the unworthy.

Also care should be taken to ensure that not too many measures are used to evaluate performance so that the employees do not lose focus, balanced scorecard essay. Is it a performance measurement system or a management system? pages 10 marks The Balanced Scorecard BSC is a strategic performance management tool - a semi-standard structured report supported by proven design methods and automation tools that can be used by managers to keep track of the execution of activities by staff within their control and monitor the consequences arising from these actions.

Design of a Balanced Scorecard ultimately is about the identification of a small number of financial and non-financial measures and attaching targets to them, so that when they are reviewed it is possible to determine whether current performance 'meets expectations'. The idea behind this is that by alerting managers to areas where performance deviates from expectations, balanced scorecard essay, balanced scorecard essay can be encouraged to focus their attention on these areas, balanced scorecard essay, and hopefully as a result trigger improved performance within the part of the organization they lead Wikipedia Balanced Scorecard is a performance measurement system.

It takes a holistic picture of all critical elements for success of a company and evaluates the performance on these factors, balanced scorecard essay. The balanced scorecard is an effective toll for the management to assess their growth track and look for balanced scorecard essay of improvement. Balanced scorecard essay was used to keep tabs on the performance against the targeted goals.

The scorecard was used in evaluating the performance of the dealers also. The marketing representatives balanced scorecard essay give ratings to the dealers to identify their strengths and help balanced scorecard essay capitalize on the opportunities to increase sales and revenue from dealers and from the Alternative Profit Centers as C-stores and service bays.

The scorecard was used by the NBUs and Servcos also to evaluate their performance considering the local balanced scorecard essay and the suitable measures from the scorecard. Since this was used across organization, it provided a common communication basis and made the managers responsible for the strategies of their BUs.

The Scorecard was also linked to compensation of the employees, balanced scorecard essay. All salaried employees were tied to the Mobile corporate award program. With a good set of metrics, the compensation plan was accepted and used to reward target achievement and the efforts put in by the employee.

Performance bonuses were awarded to strong performers which inculcated healthy competition among peers. Ann Bares Scorecard Based Incentives: Better Balanced or Unbalanced?

Balanced Scorecard essay. Free Essays - PhDessay. com, Apr 28, balanced scorecard essay, Accessed August 1, comApr The balance scorecard is a management tool that is used by the management of companies to enable them in planning on how to align the business activities to the vision.

In a rapid turning economic universe, companies ' direction has ever sought for ways and metric to estimate if a company 's concern public presentation aligns to its scheme. As mentioned in the introduction above, different business types bring a significant different treatment of strategic business control and evaluation.

Consider for example, a firm that produce sheets of paper. Performance measurement concerns all stake holders of business. Owners without executive powers are obviously most keen to know how their savings and investments are deployed, balanced scorecard essay. Employees, especially the ones with. The balanced scorecard has been said to be among the most important tools in business management Kaplan, R.

SPR Newswire The usage of balanced scorecard by several. Needs to focus Its business strategy by first addressing the following questions: How do customers see us? What must we excel at?

Can we continue to improve and create value?. Balanced Scorecard Traditional Performance Measurement Historically, the measurement system for business has been financial.

Activities of companies were measured and monitored through the traditional financial accounting model, balanced scorecard essay.

However, the extensive. The new economic paradigm is characterised by speed, innovation, quality and customer satisfaction. The essence of the competitive advantage has shifted from tangible assets to intangible ones. The focus is. We use cookies to give you the best experience possible.

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Essay type Research. Business Performance Measurement Using Balanced Scorecard Critical Review Accounting Essay. The implementation of balanced scorecard in a Chinese car insurance company. Balanced Scorecard. The Balanced Scorecard Approach. Balanced Scorecard in Telecom. Building a Strategic Balanced Scorecard. Chadwick: A Balanced Scorecard. Balanced Scorecard: Traditional Performance Measurement.

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Balanced Scorecard Essay - Words | Bartleby

Apr 28,  · Balanced Scorecard essay. With an eye on achieving better customer satisfaction, increasing organization effectiveness and decentralizing decision making, USM&R was reorganized into 17 NBUs and 14 Servcos. The unit managers, who were used to work within the top-down functional organization, needed to be transitioned from order-taking resources into blogger.comted Reading Time: 10 mins View Balanced Scorecard Example blogger.com from ACCT at Virtual University of Pakistan. Sam Janson June 14, Kaplan, R.S., & Norton, D.P. (, January-February). Using the balanced scorecard The Balanced Scorecard Essays Words | 4 Pages Introduction The balanced scorecard is a strategic planning and management system that was developed by Dr. Robert S. Kaplan and Dr. David P. Norton in the early 's