StudentShare solutions
Triangle menu

Balanced Scorecard and Its Application to Not-For-Profit Organisations - Essay Example

Not dowloaded yet

Extract of sample
Balanced Scorecard and Its Application to Not-For-Profit Organisations

These measures form the framework for the implementation of the strategy. BSC obtained its name from the attempt to balance both financial and nonfinancial performance measures. While traditional approaches to strategy focused on the financial aspect of the business the balanced scorecard looks at both the financial and non-financial aspects of the organisation. Finkler (2010, p. 299) indicates that the balance scorecard approach monitors how well the organisation is achieving its goals based on four critical perspectives: financial perspective; customer perspective; internal business perspective; and learning and growth perspective. Olve and Sjostrand (2006, p. 1) indicates that a good scorecard documents a strategic logic which represents a cause and effect relationship between current activities and long-term performance. Critical Evaluation of the Balanced Scorecard and its Development The concept of a balanced scorecard can be traced to various sources including Peter Drucker’s “management by objectives” (Balanced Scorecard Review n.db). It has evolved from being a performance management tool in 1992 to being a strategic performance management system in 1996 (Balanced Scorecard Review n.da). ...
In 2010 it developed a new emphasis in order to facilitate closer integration with organisational systems and capabilities such as Enterprise Risk Management. This development has indeed resulted in an increase in its scope to make it more applicable to all organisations including not-for-profit organisations. However, it has been criticised for not having a perspective relating to the environment/impact on the society (Drury 2009). With the impact of climate change, customers are increasingly becoming environmentally aware. Additionally, environmental groups have sought to discourage support of companies that operate in flagrant disregard to the environment. This can lead to a reduction in revenues which organisations seek to protect. Companies that Have Implemented the Balanced Scorecard Model BSC is applicable to all types of organisations. It has been applied successfully to both not-for-profit and profit organisations. Horngren et al (2011) uses a cause-and-effect relationship to illustrate how Chipset Inc used BSC approach to grow its customer base and its revenues. The company achieved its goals by focusing on key objectives in each of the four dimensions of its scorecard. In the financial perspective Chipset increased income and shareholder value by managing cost and unused capacity; and building strong customer relationships. From the customer perspective Chipset’s increased market share and customer satisfaction was obtained by identifying customers’ future needs and identifying new target-customer segments. In terms of Chipset’s internal business process perspective they improved service response time; manufacturing productivity and quality; reduced delivery time, improved processes and improved manufacturing capability. This was done ...Show more

Summary

Name: Course: Instructor: Date: Balance Scorecard and its application to not-for-profit organisations Introduction The Balanced Scorecard (BSC) is a strategic management technique that is used to communicate and evaluate the achievement of the mission and strategy of the organisation (Drury 2009)…
Author : jeraldwhite
Balanced Scorecard and Its Application to Not-For-Profit Organisations essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Balanced Scorecard and Its Application to Not-For-Profit Organisations"
with a personal 20% discount.
Grab the best paper

Related Essays

Balanced Scorecard
Balanced Scorecard Approach: A Critical Review (Name) (Tutor’s Name) (Date) Balanced Scorecard Approach: A Critical Review Introduction Balanced Scorecard is a strategic performance management tool, which is mainly used by managers to regulate strategy execution activities and subsequent monitoring processes.
8 pages (2000 words) Essay
A Report about the Rainbow Lighting Ltd focusing on the use of Balanced Scorecard
22 Executive Summary In today’s dynamic environment, it is crucial for every organisation to ensure that their performance level is measured from time to time and one of the most effective ways is to use Balanced Scorecard. The scorecard has found to have strategic importance as the card is developed in linkage with the vision and goals of the organisation and adequate awareness is created within the organisation so that every stakeholder is well-aware of the importance of its implementation in the business activities.
10 pages (2500 words) Essay
The Balanced Scorecard (BSC) method of Lloyds TSB Bank
It describes different strategies Lloyds takes in order to accomplish the organisational objectives. The balanced scorecard provides a reasonable view of organisational performance. In Lloyds, BSC has assisted to disclose the major performance activities.
11 pages (2750 words) Essay
Managerial Accounting
A performance measurement system enables an organisation in measuring, controlling and planning the performance of the organisation based on its pre-defined strategy. One of the tools for measurement of the performance of the organisation is the balanced scorecard method.
7 pages (1750 words) Essay
Balanced Scorecard
Balanced Scorecard Introduction The Balanced Scorecard was first developed in the early 1990s to solve organization and business measurement problems, although its use has evolved among companies into more important functionalities. Business and organizational operation environments have increasingly become complex, thus necessitating more complex applications rather than just measuring performance in this era of information.
10 pages (2500 words) Essay
Not for Profit Organisations
Their performance measures run in terms of output which could be any material or immaterial output. Facing problems of rising costs, competition, publicity, and finding other means of financing is a growing challenge for NFPs today. Such goals require they follow a particular legal scrutiny within their organizational structure and strong leadership that utilizes its resources to achieve that goal.
8 pages (2000 words) Essay
Balanced Scorecard Essay
The organizations should adopt a definite framework which can be used to help them develop their vision and goals for the future in a tangible, measurable way. This framework should enable the organizations to identify and understand the systemic nature of their business, the key linkages and cause and effect relationship.
6 pages (1500 words) Essay
To what extent, is it possible to reconcile the use of the Balance Scorecard techniques simultaneously for performance measurement and financial perspectives
Nevertheless this topic appeals for researcher because balance scorecard techniques have been promoted widely but its reception seems not to have met the expectations of those who promote its use. Taking a different course
40 pages (10000 words) Essay
Practical Implication of Balance Scorecard on
nal cost as well as improvement in the production process that leads to a decrease in faulty products and lastly, shortened duration of production and launch of new products. It is beneficial to first point out that the modern concept of balanced scorecard was first presented
6 pages (1500 words) Essay
Balanced scorecard
During strategic management, a number of goals may be developed aiming at improving service delivery and the general aspects that the organization engages in. though balanced score cards, it becomes easy for the organization to focus on these items and follow
8 pages (2000 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation