Developing a Balance Scorecard

Topics: Strategic management, Balanced scorecard, Strategy map Pages: 6 (1869 words) Published: April 16, 2012
Develop a balanced scorecard for your bookshop (addressed in Assignment 1). Which of the four perspectives of the scorecard will be the most difficult for you to control? Why? 1. INTRODUCTION
Any new business is likely to face the countless financial problems as a consequent of poor planning. A clear strategy is accounted as key for the business success. A good strategy planning aiming at the clear objectives finalize the decisions to avoid the actions and money failure. Balanced Score Card is used usually to review the performance of the business or organization. Like other businesses and organizations, the efforts will be made to bring the benefits of Balanced Score card in owned bookshop. This performance tool, the determinant of the business progress, can be created in two forms: one as measurement based balanced scorecard and second as strategic planning, management and communication system. In measurement based balanced scorecard existing measures are grouped into categories and measures are displayed graphically. Balanced Scorecard developed as strategic planning management tool provide a basis for better aligning of strategic objectives within the available resources. This paper describes briefly only how the strategic planning management tool will apply to small business of bookshop. 2. STRATEGIC PLANNING MANAGEMENT TOOL, BALANCED SCORE CARD AND STRATEGIC COMPONENTS

Before the construction of the Balanced Score Card, initially the objectives or mission will be set up and will be made clear to each employee working on the shop so everyone could share the same vision and approach towards aims. Later, strategy based systems aligning with the organization mission will be developed aiming at the future progress and sustainability. Shop progress depends highly on the internal processes, financial status, its learning and growth potential and customer’s expectations towards the business. As such, these determining factors will be added at the time of planning the strategy for bookshop. The interconnection of these elements will help to create the strategy. Scorecard created on these factors will ascertain the impact of the specific parameter on the business and will verify the future improvements required within the planning. Below is provided the details of the strategic components:

3.1 Financial Perspective
Taking account of this perspective, financial measures will be implemented to meet the designated financial targets so as to attract the shareholders. Hence, this objective relates to the profitability measured and will estimate the increment in the profitability (Kaplan and Norton , 1996) 3.2 Internal Process Prospective

Taking into account the consideration of this perspective, the initiatives will be implemented to meet the critical internal process in which the business must excel. These processes will enable the business unit to deliver the value propositions that will attract the retain customers; satisfy the shareholders expectations of excellent financial returns. (Kaplan and Norton, 1996) 3.3 Learning and Growth Perspective

To create the long term growth and improvement, this perspective consideration will help to determine the initiatives that bookshop will need to enhance the business capacity. It will ultimately lead to the improved outcomes for customers ( Niven, 2008). 3.4 Customer Perspective

Under the consideration of this perspective, the initiatives will be implemented to meet the targeted segments of increasing the customer number and selected determinant measures will keep the record of the business performance towards attaining this objective (Kaplan and Norton, 1996) As such, Balanced Score Card is a mixture of both financial and non financial measures. Financial measures will be covered majorly in financial and internal process perspective and non financial measures will be covered majorly in customer and learning and growth perspectives. To...
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