Balanced Score Card in Strategic Management
) “A Balanced Scorecard system provides a basis for executing a good strategy well and managing change successfully.” Demonstrate the validity of this statement by selecting an organization of your own choice and showing how strategies can be transformed into objectives, measures, targets and initiatives. You should cover all four aspects of the balanced scorecard. [20 marks] (b) Describe how one can use Lewin’s three step process to manage change [5marks]
The ‘Balanced Score Card’ is a strategic performance management system that allows an organization to translate its Vision, Mission, Values and Strategies by providing a new framework, one that tells the story of the organisation’s strategy through the objectives and measures chosen. The balanced score card system was developed by Kaplan and Norton both Havard University professors in the early to mid 1990’s. The balanced score card uses measurement as a new language to describe the key elements in the achievement of the strategy. According to Timothy Galpin in his book ‘ Making Strategy Work’ measurable goals and objectives are one of the key success factors of making strategy work. While the score card retains financial measurements, it complements them with three other distinct perspectives:- Customers, Internal Processes, and Learning and Growth.
Strategic thinking is about understanding where the organization is currently standing (situational factors), defining a vision and crafting a strategy to achieve the vision. This in itself is a transformation process of moving, or changing the organization to a desired state which is inline with its vision. The balanced score card’s emphasis on strategy i.e linking it to all activities, day to day and long term could help directors and senior management stay focused. Financial measurement alone is not adequate for a successful outcome of the organization, we require balanced information to fully assess an organisation’s success.
The ‘Balanced Score Card’ is a strategic performance management system that allows an organization to translate its Vision, Mission, Values and Strategies by providing a new framework, one that tells the story of the organisation’s strategy through the objectives and measures chosen. The balanced score card system was developed by Kaplan and Norton both Havard University professors in the early to mid 1990’s. The balanced score card uses measurement as a new language to describe the key elements in the achievement of the strategy. According to Timothy Galpin in his book ‘ Making Strategy Work’ measurable goals and objectives are one of the key success factors of making strategy work. While the score card retains financial measurements, it complements them with three other distinct perspectives:- Customers, Internal Processes, and Learning and Growth.
Strategic thinking is about understanding where the organization is currently standing (situational factors), defining a vision and crafting a strategy to achieve the vision. This in itself is a transformation process of moving, or changing the organization to a desired state which is inline with its vision. The balanced score card’s emphasis on strategy i.e linking it to all activities, day to day and long term could help directors and senior management stay focused. Financial measurement alone is not adequate for a successful outcome of the organization, we require balanced information to fully assess an organisation’s success.
Bibliography: 1) www.balancedscorecard.org 2) The Balanced Scorecard, Robert Kaplan and David Norton, Harvard Business School Press. 3) Building and Implementation A Balanced Scorecard : Nine Steps to Success, Howard Rohm. 4) The Strategy focused Organisation, Robert Kaplan and David Norton, Harvard Business School Press. 5) Allaire, Y AND Firsirouto, M.E. (1984) ‘ Theories of Organisational culture’ Organisational studies, 5,3, 193- 226. 6) Lewin, 1943 – 44, p 169)