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Developing the Balance Scorecard Essay Oz Assignments
The balanced scorecard can be rightfully described as a strategic management tool which is largely used by the different organizations in order to ensure long term success and to carry out the different organizational objectives. The given report will outline an understanding of the tool (Akkermans & Van Oorschot, 2018). These organizational objectives include the objectives like communication of their accomplishment, aligning the daily tasks of the organization, prioritization of the products, services and project management along with the balanced measurement of the progress towards the strategic targets of a firm (Bhattacharya et al., 2016). The system helps in gathering the different strategic elements like the mission, vision, the core values of the firm and the strategic focus areas like the goals and results in an attempt to link them with different operational elements like the objectives of the firm, measures of the firm and the targets (Busco & Quattrone, 2015). Moreover, it suggests a certain set of initiatives which the organization must undertake in order to achieve those targets.
For the purpose of convenience the Balanced Scorecard is primarily divided into four different perspectives each of which are used to develop the objectives, measures, the Key Performance Indicators and the targets which go a long way in helping the firm to achieve an overall success (Cooper, Ezzamel & Qu, (2017). The first perspective is the financial objective. The financial objective views the performance of the firm in financial terms and makes use of various financial resources in order to ensure that the firm achieves success.
In the next perspective, there is the Customer perspective whereby the progress of the organizational performance can be considered from the perspective of the customers or other crucial stakeholders which the organization primarily serves (Gibbons & Kaplan, 2015). The third perspective is the internal process perspective which aims to view the organization from the point of view of the quality of the internal products and the manner in which the processes are carried out in the organization (Hoque, 2014). The last perspective is the capacity of the organization or the Organizational capacity or Learning and Growth perspective which helps in the understanding of the performance of a firm from the point of view of the technology employed, human capital of the firm, the infrastructure and other related capacities.
Having understood the basic concept behind the Balanced scorecard, it is very important to understand the relationship of the of the Balanced scorecard with the different aspects like that of planning, strategies, motivation and cybernetic effects in order to ensure that the tool is suitable for the organization at large (Kang et al., 2015). The most important aspect of the balanced scorecard is that it helps to formulate different strategies which then helps the firm to increase revenue, improve the customer as well as stakeholder experience and ensure that the different organizational members are able to improve the cost efficiency of the firm at large (Tjader et al., 2014).
Along with this, the balanced scorecard is related to various other elements of the firm in the following manner:
1. It improves strategic planning: It ensures that the organization is able to make the different decisions in advance which ensure successful strategic planning (Keyes, 2016).
2. Improves communication: It improves the marketing communication which takes place in the organization so as to ensure that the comfort level of the different employees improve and bonding exists.
3. Initiates better management of communication: Once the management of communication becomes better, it contributes towards ensuring a larger success of the firm (Auerbach Publications (Nikolaou & Tsalis, 2013).
4. Ensures better alignment of Projects and Initiatives: It ensures better alignment of the projects and initiatives and helps in maintaining the timeline as well as the business schedules
5. Ensures better alignment of processes: Lastly, a balanced scorecard also goes a long way in ensuring a better alignment of the internal processes which help in positive outcomes (Reefke & Trocchi, 2013).
Therefore, from the given analysis, it can be stated that the Balances scorecard goes a long way in ensuring that the different planning, target management, strategy, forecasting and motivation assist the firm in becoming successful.
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3. Busco, C., & Quattrone, P. (2015). Exploring how the Balanced Scorecard engages and unfolds: Articulating the visual power of accounting inscriptions. Contemporary Accounting Research, 32(3), 1236-1262.
4. Cooper, D. J., Ezzamel, M., & Qu, S. Q. (2017). Popularizing a management accounting idea: The case of the balanced scorecard. Contemporary Accounting Research, 34(2), 991-1025.
5. Gibbons, R., & Kaplan, R. S. (2015). Formal Measures in Informal Management: Can a Balanced Scorecard Change a Culture?. American Economic Review, 105(5), 447-51.
6. Hoque, Z. (2014). 20 years of studies on the balanced scorecard: trends, accomplishments, gaps and opportunities for future research. The British accounting review, 46(1), 33-59.
7. Kang, J. S., Chiang, C. F., Huangthanapan, K., & Downing, S. (2015). Corporate social responsibility and sustainability balanced scorecard: The case study of family-owned hotels. International Journal of Hospitality Management, 48, 124-134.
8. Keyes, J. (2016). Implementing the IT balanced scorecard: Aligning IT with corporate strategy. Auerbach Publications.
9. Nikolaou, I. E., & Tsalis, T. A. (2013). Development of a sustainable balanced scorecard framework. Ecological Indicators, 34, 76-86.
10. Reefke, H., & Trocchi, M. (2013). Balanced scorecard for sustainable supply chains: design and development guidelines. International Journal of Productivity andPerformance Management, 62(8), 805-826.
11. Tjader, Y., May, J. H., Shang, J., Vargas, L. G., & Gao, N. (2014). Firm-level outsourcing decision making: A balanced scorecard-based analytic network process model. International Journal of Production Economics, 147, 614-623