In The Last Module We Looked At The Balanced Scorecard

In The Last Module We Looked At The Balanced Scorecard And How It Is I

In the last module we looked at the Balanced Scorecard and how it is implemented from more of a purist’s approach and just touched on the flexibility of the tool. In this module, we are going to look at the BSC from more of an adaptive approach. That is to say, how adaptable is this tool given the wide variety of organizations out there in the world. In this assignment, you are asked to study the required readings and to read the following case study: Basu, R., Little, C., Millard, C., (2009). Case Study: A fresh approach of the Balanced Scorecard in the Heathrow Terminal 5 project. Measuring Business Excellence, 13(4), 22-33. Retrieved from: [URL]. After reading this article, write an essay in which you compare and contrast the balanced scorecard utilized by the British Airport Authority (BAA) at Heathrow Airport’s Terminal 5 project with the standard quadrants typically applied in a traditional BSC approach (financial focus, internal focus, learning and growth focus, and customer focus). That is to say, the Terminal 5 project was a large, public construction project using private contractors. Yet, the BSC approach is also applied to the manufacturing sector, health care sector, and is applied in both private and public organizations. So you'll want to consider how the T5 project adapted the BSC approach to fit the prevailing circumstances to help formulate your arguments. Assignment Expectations In formulating your essay, you need to discuss to what degree the evidence suggests the balanced scorecard approach is amenable to most organizations. Introduction: In this part of your essay, you will need to introduce your topic and provide a very brief overview of the key points you plan to make in your paper. Analysis: In this section, you will present the actual comparison and contrast between BAA’s approach to the Balanced Scorecard and more traditional approaches. Conclusion: Wrap up your argument with a clear and cogent synopsis of your findings. Do your best to convince your reader (aka, your professor) as to your position. Additional Instructions: Your essay should be 3 to 4 pages in length (not counting your title page or references). You must include a list of references. APA formatting is preferred. Do not paste in sections of text into your essay. All of your work must be written in your own words. It’s OK to use a short quote now and again, but quotations must be in quotation marks and properly cited. In-text citations should be used anytime you are borrowing somebody else’s ideas or information. That is to say, if you are borrowing a thought from a publication from F. Leghorn’s article written in 2010, that section of text must be followed with (Leghorn, 2010). Quotations, data, and general ideas (put into your own words) should all be cited.

Paper For Above instruction

The Balanced Scorecard (BSC) has evolved as a comprehensive strategic management tool that enables organizations across sectors to translate vision into performance metrics. Traditionally, the BSC is structured around four quadrants: Financial Perspective, Internal Business Processes, Learning and Growth, and Customer Perspective. However, as organizations vary greatly in nature and context, the application of BSC has also adapted to fit specific circumstances. The case of Heathrow’s Terminal 5 (T5) project, managed by the British Airport Authority (BAA), exemplifies how the BSC can be tailored beyond its traditional quadrants, integrating contextual considerations unique to large-scale, public-private projects.

In traditional applications, the BSC is designed to balance financial objectives with internal efficiencies, employee development, and customer satisfaction (Kaplan & Norton, 1992). These quadrants function as a framework to measure organizational success relative to strategic goals. Conversely, BAA’s approach in the T5 project illustrates a nuanced adaptation of this framework, emphasizing sectors of performance that align with the project's complex, multi-stakeholder environment. While maintaining the core principles of balancing financial, internal, learning, and customer aspects, BAA reconfigured these to focus on key areas such as project delivery, stakeholder engagement, and regulatory compliance.

Specifically, BAA integrated a tailored perspective that reflects the multi-faceted nature of airport operations, construction project management, and public accountability. For example, the 'Financial' perspective was adjusted to include cost efficiency and timely delivery of the airport terminal, but also incorporated risk management due to the project's significant complexities. The 'Internal' perspective expanded to encompass project schedule adherence and quality assurance, emphasizing proactive process controls necessary for such a large infrastructure project (Basu et al., 2009). The 'Customer' perspective was broadened to include passenger experience, public convenience, and stakeholder satisfaction, recognizing that airport success hinges on service quality from both the end-users and regulatory bodies.

Moreover, the 'Learning and Growth' component was notably adapted in the T5 project to address the development of a skilled workforce capable of managing cutting-edge construction techniques and technological innovations. This illustrates how the BSC can prioritize internal capacity building in response to project-specific challenges, thereby extending its traditional focus on internal processes and innovation to suit complex, dynamic environments (Basu et al., 2009). Such adaptations demonstrate that the BSC’s flexibility allows it to be molded according to organizational needs and external circumstances.

Furthermore, in considering the broader applicability of the BSC, BAA’s experience signifies that the tool can be effectively customized across various sectors—from manufacturing to healthcare—highlighting its intrinsic adaptability. For instance, in healthcare, BSC frameworks often emphasize patient outcomes and regulatory compliance alongside financial sustainability (Levenson, 2005). In manufacturing, lean processes and quality control may take precedence, yet the underlying balanced perspective remains consistent. The key is the BSC’s capacity to shift focal points without losing its strategic coherence. Therefore, the case of Heathrow’s T5 project exemplifies how the principles of BSC are not confined to a singular template but are adaptable frameworks that can be tailored to fit the distinct needs and challenges faced by diverse organizations (Basu et al., 2009).

In conclusion, the evidence from the Heathrow Terminal 5 project underscores the versatility of the Balanced Scorecard as a strategic management tool. Its core quadrants serve as a foundational structure but can be expanded or reconfigured to meet unique organizational requirements, especially in complex, multi-stakeholder initiatives. This adaptability enhances its relevance across sectors, from public infrastructure to private manufacturing or healthcare, affirming that the BSC’s fundamental principles are broadly applicable. Whether in a large-scale construction project like T5 or in more traditional contexts, the capacity of the BSC to be customized suggests it is a highly versatile approach that most organizations can leverage for strategic success.

References

• Basu, R., Little, C., Millard, C. (2009). Case Study: A fresh approach of the Balanced Scorecard in the Heathrow Terminal 5 project. Measuring Business Excellence, 13(4), 22-33.
• Kaplan, R. S., & Norton, D. P. (1992). The Balanced Scorecard—Measures that Drive Performance. Harvard Business Review.
• Levenson, A. (2005). An overview of the balanced scorecard. Strategic Finance, 86(5), 26-32.
• Melnyk, S. A., Stewart, D., & Swink, M. (2009). Metrics and Performance Measurement: What and How to Measure? Journal of Business Logistics, 30(1), 65–75.
• Kaplan, R. S., & Norton, D. P. (2004). Strategy Maps: Converting Intangible Assets into Tangible Outcomes. Harvard Business School Press.
• Nørreklit, H. (2000). The Balanced Scorecard: What is the score? A rhetorical analysis of the balanced scorecard. Accounting, Organizations and Society, 25(6), 603–623.
• Olson, D. L., & Wu, D. D. (2010). The Balanced Scorecard: Measuring Organizational Performance. Routledge.
• Harrison, B., & Van der Rijst, R. (2010). Strategic Performance Management: Using the Balanced Scorecard. Routledge.
• Parmenter, D. (2015). Key Performance Indicators: Developing, Implementing, and Using Winning KPIs. Wiley.
• Gomes, C. F. S., & Neves, V. (2014). Using the Balanced Scorecard in Healthcare Organizations. International Journal of Healthcare Management, 7(1), 11-19.