Class notes

The use and implementation of the Balanced Scorecard

2 views 0 purchase

Course
EMAN 001

Institution
Canadian College ( )

The professor's name is Mr. Henry Palacio. This is based on his presentations about the topic The use and implementation of the Balanced Scorecard.

[Show more]

Preview 2 out of 5 pages

View example

Uploaded on January 12, 2023
Number of pages 5
Written in 2022/2023
Type Class notes
Professor(s) Mr. henry palacio
Contains All classes

balanced scorecard uses
implementation of balance scorecard

CA$11.85

Add to cart

Add to wishlist

100% satisfaction guarantee
Immediately available after payment
Both online and in PDF
No strings attached

The use and implementation of the Balanced Four Interconnected Subjects
Scorecard
The Balanced Scorecard has a number of
characteristics in common. To begin, it lays out
goals and objectives for the many subareas of
The Balanced Scorecard is a method to
the business, including customers, learning and
management that was developed in 1992 by
development, internal processes, and financial
Robert Kaplan and David Norton. Since the
performance. These are described in the
publication of their book, The Balanced
following figure. The customer service
Scorecard: Translating Strategy into Action, in
department is responsible for ensuring that
1996, the Balanced Scorecard approach has
existing customers are happy. The concepts of
gained popularity all around the globe. The
learning and development investigate the
Gartner Group projected that at least forty
efficacy of leadership through the lens of
percent of all Fortune 1000 organizations were
metrics like as employee happiness and
using the Balanced Scorecard in the year 2001.
retention, as well as the performance of
However, due to the fact that it may be difficult
information systems. The internal sector
to execute, it is probable that the manner in
focuses on production and innovation, analyzing
which it is used varies greatly from one
performance in terms of maximizing profits
company to the next.
from existing items and tracking indications for
increased productivity in the future. Last but
not least, one of the most common types of
The Balanced Scorecard is a framework that is performance indicators is a company's financial
designed to translate an organization's mission performance, which is evaluated based on a
and vision statements as well as its overall variety of metrics, including return on
business strategy into specific goals and investment and operational costs.
objectives that can be quantified, and it is also
designed to monitor the performance of an
organization in terms of how well it is achieving
The mission, the vision, and the strategy
these goals. One of the other critiques leveled
Customers come in first. Internal Processes is
against MBO was that it seemed to be isolated
the correct answer. Bottom: Financial
from a company's strategy. One of the advances
Performance. Learning and development are on
brought about by the Balanced Scorecard was
the left.
the specific attention to vision and strategy that
was paid while creating goals and objectives. The organization's strategy is mapped out in
The Balanced Scorecard is a comprehensive terms of customer, learning, internal, and
approach that analyzes an organization's overall financial goals and objectives. Precise metrics,
performance in four different ways, so that as well as the specific actions for reaching those
future performance can be predicted and goals, are developed based on how the strategy
appropriate actions can be taken to create the is mapped out. This more in-depth theory
future that is desired. This idea stems from the behind the Balanced Scorecard is broken out in
notion that assessing performance through the following image. The technique analyzes the
financial returns only provides information goals, objectives, measurements, and actions in
about how well the organization did prior to the each of the following four categories: When
assessment. performance measures for areas such as
customer relationships, internal processes, and

, learning and growth are added to the financial Quantifications of employee recommendations
metrics, proponents of the Balanced Scorecard or responses to employee surveys are another
argue that the result is not only a broader possible inclusion in metrics.
perspective on the company's health and
activities, but it is also a powerful organizing
framework. In other words, the Balanced Scorecard with a Balanced Approach Activities,
Scorecard allows for a more holistic analysis of Goals, and Objectives, as well as Measures.
the company's state of affairs. It is a complex
instrument panel that can be used to The use of the Balanced Scorecard to translate
coordinate and fine-tune a company's goals into activities is shown in figure 7.3.3.
operations and businesses in order to ensure (Kaplan et al., 2001).
that all of the company's actions are in line with
its strategy.
The Implementation of the Balanced Scorecard

Even if it is just used as a framework for
The Balanced Scorecard is a framework that thinking about goals and objectives, the
sequentially divides broad goals into more Balanced Scorecard is still a beneficial
granular objectives, metrics, and activities for organizational structure even in this limited
the business. One way in which this strategy sense. In practice, the Balanced Scorecard is
might be implemented is if an organization designed to be more than just that. The people
were to include, as part of its mission or vision who came up with the idea for the Balanced
statement, the objective of ensuring the Scorecard "rightly insist that every company
continued satisfaction of its workforce (for needs to dig deep to discover and track the
instance, the mission statement might include activities that truly affect the frameworks'
the phrase "our employees are our most broad domains" (domains such as "financial,"
valuable asset," as an example). This would not "customer," "internal business processes," and
only be an essential aspect of the organization's "innovation and learning"), according to one
purpose, but it would also give a "internal" source (Ittner & Larcker, 2003). At its most
target area for that aim on the Balanced comprehensive level, where the scorecard
Scorecard. Importantly, if this goal were functions in a manner analogous to a map of
accomplished in the correct manner, it would the company's vision, purpose, and strategy,
also be linked to the overall strategy of the the Balanced Scorecard is dependent on four
organization. Specifically, other parts of the processes to connect short-term actions to
scorecard would demonstrate how having long-term goals. These processes are as follows:
excellent employees provides returns in the
areas of economics, society, and the
environment. It's possible that increasing the Putting the vision into words. As a result of its
amount of communication between employees reliance on measurement, the scorecard
and managers is one of the strategies that may compels leaders to reach a consensus on the
be used to realize that goal for human measures that they will use in order to
resources. One example of a tactical activity transform their aspirational goals into day-to-
that might be carried out as part of the day realities.
implementation of the plan is holding regularly
scheduled meetings with the staff.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller ezekielrobert. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$11.85. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

53068 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling