Balanced Scorecard
Introduction
Strategy is the direction and scope of organisation over the long term to accomplish its objectives. In formulating its strategy, an organisation must thoroughly understand the industry in which it operates
There are five forces model, in these model emphasis are on all the relevant factors that an organisation should consider. Organisation success depends on its need to take into account the firm, its Customers, Competitors, Suppliers and its Employees. If all these are not monitored properly and the linkages not understood correctly, then it can impede the performance of an organisation (Porter, 1985)
It is now more important for top management to understand the performance standards the organisation has to achieve, also to ensure that information is properly communicated to all employees. Top management must monitor the progress with regard to the achievement of the strategic goals in order to ensure successful achievement of the strategies. To make a meaningful evaluation, the management must be having some objective measures to review the efficiency of the company taking into account all the dimensions of its operations. (Murali and Punniyamoorthy, 2008).
Many organisations have introduced a Balanced Scorecard to manage the implementation and measure their Strategies.
What is Balanced Scorecard?
The Balanced Scorecard (BSC) is a strategic performance management framework that allows organisations to manage and measure the delivery of their strategy. The concept was introduced by Robert Kaplan and David Norton from Harvard Business School in 1992(Kaplan and Norton, 1992)
In this present day, a company financial statements cannot properly capture the kind of measurements needed because the traditional methods of measuring focussed on financial indicators. The intangible assets such as, high quality services, intellectual capital, skilled employees, prompt and reliable services, responsiveness efficient and adaptable business processes which
Strategy is the direction and scope of organisation over the long term to accomplish its objectives. In formulating its strategy, an organisation must thoroughly understand the industry in which it operates
There are five forces model, in these model emphasis are on all the relevant factors that an organisation should consider. Organisation success depends on its need to take into account the firm, its Customers, Competitors, Suppliers and its Employees. If all these are not monitored properly and the linkages not understood correctly, then it can impede the performance of an organisation (Porter, 1985)
It is now more important for top management to understand the performance standards the organisation has to achieve, also to ensure that information is properly communicated to all employees. Top management must monitor the progress with regard to the achievement of the strategic goals in order to ensure successful achievement of the strategies. To make a meaningful evaluation, the management must be having some objective measures to review the efficiency of the company taking into account all the dimensions of its operations. (Murali and Punniyamoorthy, 2008).
Many organisations have introduced a Balanced Scorecard to manage the implementation and measure their Strategies.
What is Balanced Scorecard?
The Balanced Scorecard (BSC) is a strategic performance management framework that allows organisations to manage and measure the delivery of their strategy. The concept was introduced by Robert Kaplan and David Norton from Harvard Business School in 1992(Kaplan and Norton, 1992)
In this present day, a company financial statements cannot properly capture the kind of measurements needed because the traditional methods of measuring focussed on financial indicators. The intangible assets such as, high quality services, intellectual capital, skilled employees, prompt and reliable services, responsiveness efficient and adaptable business processes which
Bibliography: Hornegun, C.T, Datar, S.T and Foster, G. Cost Accounting, A mangerial Emphasis. 11th edition (Int. edt.). Prentice Hall (Pearson Education International), 2008. Porter, M.E. competitive Advantages: Creating and Sustaining superior performance. New York, NY: Free press, 1985. Brewer, P.C., Speh, T.W. "Using the balanced scorecard to measure supplychain performance." Journal of Business Logistics Vol.21, no. No.1 (2000): pp.75-93. Hepworth, O. "Weighing it up: A review of the balanced scorecard concept." International Journal of Contemporary/Hospitality Management Vol.10, no. PT.2 (1998): pp.80-82. Kaplan, R.S.,Norton, D.P. "The balanced scorecard - measures that drive performance." Havard Business Review Vol. (January/February 1992): pp. 1-79. Kaplan, R.S., Norton,D.P. "Linking the balanced scorecard to strategy." California Management Review Vol.39, no. No.1 (1996b): pp. 53-79. Meena, C. "The Balanced scorecard: a new challenge." Journal of Management Development 28, no. No.5 (2009): pp.393-406. Murali, R., Punniyamoorthy, M. "Balanced score for the balanced scorecard: a benchmarking tool." Benching: An International Journal VOL.15, no. NO.4 (2008): PP.420-443. The Advanced performance Institute. 2010. www.ap-institute.com/balancedscorecard. Lexis Nexis. 2009. www.lexisnexis.co.uk/company. Wm Morrisons Plc. 2010. www.wmmorrisons.co.uk.