Balanced Scorecard for the Deparment of Business Administration
Case study
Balanced Scorecard for Prof. Håkan Pihl – Non-financial Measurement
Course: BUSN62Accounting Management and Control
Term: Autumn 2012
Group: 4
Authors: Andersson, Jacob – 881021-4034 Olandersson, Björn – 880113-3953 Wester, Simon – 870428-7476
Teacher: Andersson, Per-Magnus
Submission: 2012/09/28
Introduction
Since 1990s accountability in higher education has become a challenging issue for Universities. Institutions need to provide performance indicators to their stakeholders, mainly students and governmental bodies. One effective way of making sure that an organization moves in the right direction is the Balanced Scorecard (BSC).
The Theory of the BSC was introduced in 1992 in an article written by Robert S. Kaplan and David P. Norton (Kaplan & Norton, 1992). The Scorecard is intended to create a balance between financial and nonfinancial goals in a company. The BSC mission is also to translate strategies into organizational goals and provide easily measured metrics to monitor whether the objectives are achieved. It was created as a set of measures for managers to get a quick but comprehensive view of their business in order to facilitate the control of the company. Metrics within the scorecard should be evaluated regularly and can be used as a base for a reward system. The theory is critical of the previous research mainly focused on financial metrics such as sales and profitability. Kaplan and Norton (1992) argue that financial management only focuses on the past and not the future possibilities, such as customer satisfaction and employee development. To achieve long-term profitability a company should instead be focused on four areas:
* Financial - How do we look to shareholders? * Internal business process - What must we excel at? * Learning and growth - Can we continue to improve and create value? * Customer - How do customers see us?
Purpose and method
This paper aims to prepare a Balanced Scorecard
Balanced Scorecard for Prof. Håkan Pihl – Non-financial Measurement
Course: BUSN62Accounting Management and Control
Term: Autumn 2012
Group: 4
Authors: Andersson, Jacob – 881021-4034 Olandersson, Björn – 880113-3953 Wester, Simon – 870428-7476
Teacher: Andersson, Per-Magnus
Submission: 2012/09/28
Introduction
Since 1990s accountability in higher education has become a challenging issue for Universities. Institutions need to provide performance indicators to their stakeholders, mainly students and governmental bodies. One effective way of making sure that an organization moves in the right direction is the Balanced Scorecard (BSC).
The Theory of the BSC was introduced in 1992 in an article written by Robert S. Kaplan and David P. Norton (Kaplan & Norton, 1992). The Scorecard is intended to create a balance between financial and nonfinancial goals in a company. The BSC mission is also to translate strategies into organizational goals and provide easily measured metrics to monitor whether the objectives are achieved. It was created as a set of measures for managers to get a quick but comprehensive view of their business in order to facilitate the control of the company. Metrics within the scorecard should be evaluated regularly and can be used as a base for a reward system. The theory is critical of the previous research mainly focused on financial metrics such as sales and profitability. Kaplan and Norton (1992) argue that financial management only focuses on the past and not the future possibilities, such as customer satisfaction and employee development. To achieve long-term profitability a company should instead be focused on four areas:
* Financial - How do we look to shareholders? * Internal business process - What must we excel at? * Learning and growth - Can we continue to improve and create value? * Customer - How do customers see us?
Purpose and method
This paper aims to prepare a Balanced Scorecard
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