Memo Ex 2.5
MEMO
To: Duncan Clarke
From: XXXXX
Date: October 16, 2012
Subject: Balanced Scorecard Technique
This memo is in response to your questions concerning the “balanced scorecard” technique that may be of use in the new strategic plan. This memo will first explain what balanced scorecard is and then discuss how it may be implemented.
What is balanced scorecard?
Balanced scorecard is a performance metric used in strategic management strategies, to help an organization monitor and improve various internal functions, which will result in better external outcomes. In essence, it is a tool to help management see if they are achieving desired results in their implemented strategies. The balance scorecard breaks performance down into four interconnected perspectives:
1. Financial Perspective (revenues, earnings, return on capital, cash flow, etc.) 2. Customer Perspective (market share, customer satisfaction measures, customer loyalty, etc.) 3. Internal Process Perspective (productivity rates, quality measures, timeliness, etc.) 4. Learning and Growth Perspective (morale, knowledge, turnover, use of best demonstrated practices, etc.)
These four perspectives then form a four-box model called a Strategy Map. A Strategy Map will allow our company to see how the objects in each perspective support each other. This will create a cause-and-effect logic which will allow Clarke Manufacturing Company to create a truly integrate set of strategic objectives on a single page.
How it might be of use?
The balance scorecard may be of use for Clarke Manufacturing Company in many ways. I have listed the six main ways it may be useful: 1) Increases the focus on the business strategy and its outcomes. 2) Leads to improvised organizational performance through measurements. 3) Align the workforce to meet the organization’s strategy on a day-to-day basis. 4) Targeting the key determinants or drivers of future performance. 5) Improves
To: Duncan Clarke
From: XXXXX
Date: October 16, 2012
Subject: Balanced Scorecard Technique
This memo is in response to your questions concerning the “balanced scorecard” technique that may be of use in the new strategic plan. This memo will first explain what balanced scorecard is and then discuss how it may be implemented.
What is balanced scorecard?
Balanced scorecard is a performance metric used in strategic management strategies, to help an organization monitor and improve various internal functions, which will result in better external outcomes. In essence, it is a tool to help management see if they are achieving desired results in their implemented strategies. The balance scorecard breaks performance down into four interconnected perspectives:
1. Financial Perspective (revenues, earnings, return on capital, cash flow, etc.) 2. Customer Perspective (market share, customer satisfaction measures, customer loyalty, etc.) 3. Internal Process Perspective (productivity rates, quality measures, timeliness, etc.) 4. Learning and Growth Perspective (morale, knowledge, turnover, use of best demonstrated practices, etc.)
These four perspectives then form a four-box model called a Strategy Map. A Strategy Map will allow our company to see how the objects in each perspective support each other. This will create a cause-and-effect logic which will allow Clarke Manufacturing Company to create a truly integrate set of strategic objectives on a single page.
How it might be of use?
The balance scorecard may be of use for Clarke Manufacturing Company in many ways. I have listed the six main ways it may be useful: 1) Increases the focus on the business strategy and its outcomes. 2) Leads to improvised organizational performance through measurements. 3) Align the workforce to meet the organization’s strategy on a day-to-day basis. 4) Targeting the key determinants or drivers of future performance. 5) Improves