StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Crucial Role of a Balanced Scorecard - Research Paper Example

Cite this document
Summary
The paper "Crucial Role of a Balanced Scorecard" focuses on the critical analysis of the crucial role a balanced scorecard plays in communicating organisation strategies and hence achieving innovation and competitive advantage over other companies…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91.5% of users find it useful
Crucial Role of a Balanced Scorecard
Read Text Preview

Extract of sample "Crucial Role of a Balanced Scorecard"

Innovation also calls for the employment of qualified personnel, who brainstorm to come up with better products and ensure excellent services to consumers. Companies achieve innovation through the creation of new goods or services that disrupt consumers buying patterns or through incremental improvements on the existing products thereby increasing their life.

A balanced scorecard is the face value of an organization that connects strategic objectives. According to the balanced scorecard institute website, “A balanced scorecard identifies the connection between creative capacity, efficient product development processes, improved customer and stakeholder value, and financial outcomes” (“Balanced scorecard institute”, 2000). The above scorecard incorporates the mission and vision statements of a company, which form part of the strategic objectives. A vision statement of a company explains the reason for being. It inspires people to achieve more than they thought possible, allows the stretching of resources to increase profitability, and unites employees towards a common goal. A vision statement forms the foundation of an organization's values and influences its strengths and weaknesses. On the other hand, a mission statement describes why the organization exist, what it intends to achieve, and the purpose and identity of the organization.

The above-balanced scorecard incorporates organizational values, purpose, and identity. For instance, to remain at a competitive advantage, the company has to employ a mechanism of establishing new products through innovation. Similarly, a company whose mission is to offer the best services to its customers to retain them does this by offering quality services to them just like it is dictated in the scorecard. Additionally, vision and mission statements dictate the values that an organization stands for. This important aspect portrays the company’s image and helps employees to identify with it. A good public image goes a long way in helping a company increase its market share in the community over a period. In addition, a company's culture and values form a basis for employee motivation because they feel part of the organisation.

The above-balanced scorecard incorporated strengths, weaknesses, opportunities, and threats of an organization. A strategic objective that gears towards measuring processes in the company such as an operation process helps establish the existing strengths and weaknesses. For instance, measuring the level of employee turnover will help establish if the organization has a weakness or strength in its productive employees. Additionally, setting measurable objectives calls for the use of opportunities available in the market to counteract the threats. For instance, before deciding to increase the market share of a company’s products, one must first establish the existing opportunities. In conclusion, balanced scorecards borrow ideas from vision, mission, and SWOT analysis to enable the company to grow in line with its objectives.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Homework Research Paper Example | Topics and Well Written Essays - 750 words”, n.d.)
Retrieved from https://studentshare.org/other/1401110-homework
(Homework Research Paper Example | Topics and Well Written Essays - 750 Words)
https://studentshare.org/other/1401110-homework.
“Homework Research Paper Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/other/1401110-homework.
  • Cited: 0 times

CHECK THESE SAMPLES OF Crucial Role of a Balanced Scorecard

Balanced Scorecard Approach

he most fascinating feature of a balanced scorecard is that a set of financial and non-financial tools are presented in a single succinct report by comparing each tool to a 'target' value.... According to them, a balanced scorecard 'defines the set of near-term objectives and activities, the drivers that will differentiate a company from its competitors and create long-term customer and shareholder value, the outcomes' (Kaplan & Norton, 2001, p.... The essay "balanced scorecard Approach" focuses on the critical analysis of the potential limitations of the approach while comparing it with the emerging approaches to organizational strategy....
10 Pages (2500 words) Essay

Balanced Scorecard in the Chinese Commercial Banking Sector

However, among the aforementioned tools, the importance and usage of a balanced scorecard will be principally highlighted throughout the entire report.... With the help of a balanced scorecard, organizations have been able to align their strategies and visions with business activities.... Some of the major performance measurement tools that are being used in the current business scenario include a balanced scorecard, Economic Value Added (EVA), Activity Based Costing and Management, Performance Prism, and Quality Management....
27 Pages (6750 words) Dissertation

Integration - Causal Chains and Strategy

The author of the paper "Integration - Causal Chains and Strategy" argues in a well-organized manner that there are four quadrants of a balanced scorecard namely as Organizational Capacity, Internal Processes, Customers, and Financial Perspectives (McKay, 2004).... Last, but probably the most important perspective of a balanced scorecard is the financial perspective such that every organization needs to improve its financial performance and position.... Under the following section, each quadrant is briefly discussed, followed by their causal linkages and the last part of this article provides a nine-step framework to develop such a balanced scorecard system in the technology-based organization....
4 Pages (1000 words) Essay

Project-Balanced Scorecard

a balanced scorecard is a management system/tool which presents a 'balanced' perspective on organizational performance.... The paper "Project-balanced scorecard" discusses that balanced scorecard is a very useful strategic management tool and system which can be used by the management to enhance their success by utilizing it as and guiding framework for strategic analysis.... The main point of difference between the balanced scorecard and general management systems/tools is that these general management tools focus primarily on the financial performance of the firm and that too is generally from a historical point of view....
7 Pages (1750 words) Essay

Strategy Maps

Strategy map gives out the visual guidelines for integrating a company's objectives in the four perceptions of a balanced scorecard.... The paper 'Strategy Maps' looks at the strategy mapping, which is a natural evolution of balanced scorecard that has been the subject of recent discussions, articles, and books.... Strategy maps are essential elements of the documentation related to the balanced scorecard.... Additionally, it is a feature of the second generation of balanced scorecard models that initially started in the mid-1990s (Armitage, 2004, p....
4 Pages (1000 words) Research Proposal

Evaluation of Development and Role of Balanced Scorecard in Production and Service Organisation

A section of the report is dedicated to the discussion of the use of a balanced scorecard on the international business platform.... The report is concluded with a reflective opinion regarding the usefulness of a balanced scorecard in the current business environment and the ways in which the design and implementation of the balanced scorecard can be made better.... a balanced scorecard (BSC) is a strategic management tool which is used as an integrated management system throughout an organization with the aim of driving the improvement, modernization and transformation of business processes at all hierarchical levels so that the pre....
11 Pages (2750 words) Coursework

Readiness of the Saudi Government to Implement a Balanced Scorecard in its Public Sector

The paper "Readiness of the Saudi Government to Implement a balanced scorecard in its Public Sector" is a great example of a report on management.... The paper "Readiness of the Saudi Government to Implement a balanced scorecard in its Public Sector" is a great example of a report on management.... The paper "Readiness of the Saudi Government to Implement a balanced scorecard in its Public Sector" is a great example of a report on management....
21 Pages (5250 words) Report

Performance Management: Balanced Scorecard

The paper "Performance Management: balanced scorecard" is a good example of a management essay.... The paper "Performance Management: balanced scorecard" is a good example of a management essay.... The paper "Performance Management: balanced scorecard" is a good example of a management essay.... In essence, therefore, a performance system including the balanced scorecard method is aimed at improving performance and for a company to be successful it must be able to measure its effectiveness....
11 Pages (2750 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us