You Make Some Great Points About How The Balanced Scorecard

You Make Some Great Points About How The Balanced Scorecard Isnt G

1. You make some great points about how the Balanced Scorecard isn't going to provide the best results in every situation. Just like any other tool, the balanced scorecard has its limitations. These include the idea of it only really telling the company where it is right now. Another is the subjective analysis based mostly on the thoughts and ideas of those performing and using it. Thus, there are a number of different things that can go wrong from trying to make predictions to trying to influence the results being provided through personal bias, company loyalty, etc. So, what can a company do to make sure this using this tool do to help ensure they are getting the results they need to effectively use them?

2. What is a Balanced Scorecard? What is it used for? How is it used? Answer each question with at least 75 words.

Paper For Above instruction

The Balanced Scorecard (BSC) is a strategic management tool developed by Robert Kaplan and David Norton in the early 1990s. It provides a comprehensive framework for organizations to measure and manage their performance beyond traditional financial metrics. By integrating financial and non-financial measures across various perspectives—financial, customer, internal business processes, and learning and growth—the BSC helps organizations translate their vision into actionable objectives. It is used to align business activities with strategic goals, monitor progress, and foster continuous improvement by providing a balanced view of organizational performance.

The primary purpose of the Balanced Scorecard is to give management a clear picture of organizational health and strategic execution. Unlike traditional performance measurement systems that focus solely on financial outcomes, the BSC emphasizes drivers of future performance, such as customer satisfaction, internal efficiencies, and employee development. This holistic view enables managers to identify areas requiring attention and allocate resources effectively, ensuring long-term success. It also facilitates communication of strategic objectives across the organization, aligning departmental initiatives with overarching goals.

The BSC is used by organizations through a systematic process that involves establishing strategic objectives across the four perspectives. These objectives are translated into specific measures or Key Performance Indicators (KPIs). Managers then track these KPIs regularly, analyze trends, and make informed decisions based on the data. The process often involves setting targets, creating initiatives, and reviewing performance in regular strategic meetings. Organizations also adjust their strategies based on insights gained from BSC metrics to enhance performance continually. This method ensures a balanced approach to managing both short-term results and long-term strategic objectives.

References

  • Kaplan, R. S., & Norton, D. P. (1996). The Balanced Scorecard: Translating Strategy into Action. Harvard Business Review Press.
  • Nørreklit, H. (2000). The Balanced Scorecard: What is the score? A rhetorical analysis of the balanced scorecard. Accounting, Organizations and Society, 25(6), 593-606.
  • Kaplan, R. S., & Norton, D. P. (2004). Strategy Maps: Converting Intangible Assets into Tangible Outcomes. Harvard Business School Publishing.
  • Mooraj, S., Oyon, D., & Codling, D. (1999). Options and procedures for implementing the balanced scorecard approach. Management Accounting Research, 10(2), 203-220.
  • Slomp, S. (2006). Implementing the Balanced Scorecard: Strategic and Operational Dialog. Business Horizons, 49(2), 121-127.
  • Kaplan, R. & Norton, D. (2001). The Strategy-Focused Organization. Harvard Business School Publishing.
  • Otley, D. (1999). Performance Management: A Systemic Approach. International Journal of Management Reviews, 1(4), 251-277.
  • Ittner, C. D., & Larcker, D. F. (1998). Innovations in Performance Measurement: Trends and Research Implications. Journal of Management Accounting Research, 10, 205-238.
  • Griffiths, A., & Wall, M. (1999). Strategic Performance Management: Linking Balanced Scorecard and Strategy. Long Range Planning, 32(2), 229-238.
  • Kaplan, R. S., & Norton, D. P. (2000). Having Trouble with Your Strategy? Harvard Business Review, 78(5), 77-85.

Related Assignments