THE BALANCED SCORECARD 1 Why businesses need a balanced scorecard The balanced scorecard was developed by US academics Robert Kaplan and David Norton in response to the shortcomings of traditional financial measures. Traditional financial measures are one-dimensional. By definition‚ they only look at the financial aspects of a business. Traditional financial measures are historical. They tell us nothing about what may happen to the business in the future. There are many examples of businesses
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Success of the Balanced Scorecard The change can be described as a success when the BSC is working well‚ this can occur when certain goals and conditions are met. Those conditions will be described in this section. Once a project aligned with goals and strategies of the organization is chosen‚ project members selected‚ and proper communication of goals has been provided to the project team‚ it is possible to develop a balanced scorecard to monitor the project (Devine et al.‚ 2010). According
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Balanced Scorecard MGT 521 Sept 11‚ 2013 Balanced Scorecard Table 1 Balanced Scorecard Aspect of Company Performance Factors to be Considered Organizational Goal Actual Performance Gaps Financial Quarterly Profit Results Return on Capital Employed $5‚000 $4‚000 $6‚000 $1‚500 Quarterly profits were higher than anticipated ($6‚000 versus $5‚000)‚ Return on Capital Employed was much lower than Organization goal ($1‚500 versus $4‚000). Customer Customer Satisfaction Rate
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has principles that include Honesty‚ Fairness‚ Objectivity‚ and Responsibility [http://www.imanet.org/pdfs/statement%20of%20Ethics_web.pdf]. Therefore‚ it would be up to her to make sure Michael Peterson did not get away with manipulating the balanced scorecard for his benefit. First‚ she should try to speak with him again in a final attempt to get him to reconsider his decision. If he refused to listen and continued threats against Mary‚ she should attempt to speak with his supervisor‚ Paul Parker
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Module: Supply Chain Management Exercise: Balanced Scorecard Session 4: Supply Chain Performance Management Instructor: Perry Davidson Candidate: Meg (Hongman) Liang Date: Oct 7th‚ 2013 1. State your organization’s supply chain strategy‚ e.g.‚ “to provide customerwith high level of service while contributing to corporate profitability.” The company’s supply chain strategy is “to meet customer needs and advance our technology leadership while creating value for our customers
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financial measures in this role. In recent years‚ however‚ there has been increasing recognition that financial measures alone will not provide managers with sufficient information to manage a business effectively. Non-financial measures The balanced scorecard 323 must also be used in order to gain a deeper understanding of the business and to achieve the objectives of the business‚ including the financial objectives. Financial measures portray various aspects of business achievement (for ex
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Introduction to the Balanced Scorecard and Performance Measurement Systems 1 Chapter 1 Introduction to the Balanced Scorecard and Performance Measurement Systems by Christian C. Johnson From the beginning‚ it is important to understand why measuring an organization’s performance is both necessary and vital. An organization operating without a performance measurement system is like an airplane flying without a compass‚ a Formula One race car driver guiding his car blindfolded‚ or a CEO
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The Balanced Scorecard The Balanced Scorecard is a strategic performance management framework that has been designed to help an organisation monitor its performance and manage the execution of its strategy. It is used to align business activities to the vision and strategy of the organization‚ improve internal and external communications‚ and monitor organization performance against strategic goals. The Balanced Scorecard provides a framework that not only provides performance measurements‚ but
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STRATEGIC MANAGEMENT ACCOUNTING Samsung Electronics Ltd. (Balanced Scorecard Analysis) Compiled by: Bernardus Alan Handoko Aya Putri Argatika Reza Mediar Novi Prastia 11/311392/EK/18212 11/320288/EK/18685 11/320298/EK/18695 11/320299/EK/18696 SAMSUNG’s Products Curved UHD TV Samsung Galaxy S5 Samsung Gear Fit Samsung Galaxy Note PRO Samsung SCX-3406FW STRATEGIC MANAGEMENT ACCOUNTING – MAY 2014 1 Financial Perspective Samsung’s financial perspective emphasizes the stakeholder concern about
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of this report is to assess the usefulness of the balanced scorecard (BSC) model within a business and strategic management accounting. To acquire such information‚ the model will be applied to a company and then critiqued giving both the benefits and any practical implications regarding the use of the BSC. The BSC was introduced by Kaplan and Norton (1992) as a new approach to strategic management accounting. ‘The purpose of the balanced scorecard is to guide‚ control and challenge an entire organisation
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