Balance Score Card Assignment A Balanced Scorecard can be defined as a “performance management tool which began as a concept for measuring whether the smaller-scale operational activities of a company are aligned with its larger-scale objectives in terms of vision and strategy” (Wikipedia 2009, ¶ 1). Scents & Things will need to develop a balanced scorecard that will assist in meeting and help define the company’s values, mission, vision, and SWOT analysis. The balance scorecard is made up of four perspectives; financial, customer, learning and growing, and internal process. This paper will define each of the four perspectives objectives, performance measures, targets, and initiatives. The paper will also show how the perspectives relate to Scents & Things vision, mission, values, and SWOTT analysis. Financial Perspective The main goal when defining the financial perspective was to answer the following question “If we succeed, how will we look to our stakeholders” (BSI 2009, ¶5). Scents & Things is a new business in the area and will need to look closely at the competition in order to increase the company’s market share. The company may have to initiate a way to find a competitor since the original location is in the heart of a small town. Additional areas the company needs to look at is customer satisfaction, asset utilization, Increase net revenues, Minimizing store production costs, Decrease in unit cost, Increase operating cash flow over prior year , And ultimately to achieve financial sustainability. The way to measure the above objectives is to monitor revenue growth, Operating costs, Earnings per share, Return on capital, Return on interest, and number of returned items in a way that will help management to direct the c... ... middle of paper ... ... & Growth Perspective Strategic Objectives • Recruit and retain a highly skilled workforce • Increase employee satisfaction and retention • Improve organizational trust & teamwork • Improve Use of Technology Performance Measures • Ensure proper organizational learning based on data, outcomes & experience • Proper monitoring, training, and employee happiness • Customer satisfaction • Decrease in employee turnover rate Targets • 100% involvement from all employees Initiatives • Staffing Optimization Analysis • Online Billing Upgrade • Service Training References Wikipedia (May 2009) Balanced scorecard. Retrieved from URL: http://en.wikipedia.org/wiki/Balanced_scorecard Balanced Scorecard Institute (2009) Balanced Scorecard Basics. Retrieved from URL: http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx
With the goals of 2010 in mind, it is important for the AHA to be able to measure the actions of their employees and ensure the alignment of their behaviors with the strategic goals of the association. The Balance Score Card developed below serves as universal tool to do just that, but also sends a message to leaders and employees across the association that this is the new strategic direction the association will be moving, and this is it will be mapped and measured to ensure we reach our goals for 2010.
The Balanced Scorecard is a business strategic planning system used by management to make decisions based on information provided about the business from four different perspectives. The first of the four perspectives is the financial perspective. Which means that we evaluate our business and conduct research from the shareholders perspective. Next is the internal business perspective, which is an internal evaluation of what the business must be good at to excel. Next is the innovation and learning perspective which is an evaluation of the firm’s ability to continue to improve and create value. The final perspective is the customer perspective, which is looking at the business activities from the customers
This part of the assignment will discuss balanced scorecard that has been implemented by UK National Health Service (NHS), how it has influenced and impacted upon the performance measures of this organisation.
The single most important problem faced by Flare Fragrances is that they are seeing a decline in growth dramatically. The CEO is faced with two options to overcome this and that is to develop a new perfume brand, or increase efforts in the drug stores for sales. The primary cause of this problem is the recession. The company made revenue, unlike some companies during the recession, but the CEO is afraid that this decline may carry over into the 2009 year. To address this problem the company should extend to drug stores. The CEO wants at least 7.5 million dollars in revenues by the end of 2009, penetrating the drug store market will only increase revenues more.
Balanced scorecards are a tool a nurse leader can use in strategic planning to assess how the organization is meeting its strategic goals and objectives. It allows for a well-rounded analysis of four different metrics: fiscal measures, customers, processes and learning and growth (Marquis & Huston, 2015). The intention of a balanced scorecard is to help “organizations set strategic goals, allocate resources, set priorities for process tasks (operations), and evaluate progress and strategy effectiveness” (Sare & Ogilvie, 2010, p. 158). Appendix A outlines the balanced scorecard for this planned change.
The Balanced Scorecard (BSC) was developed by Kaplan and Norton as a performance management tool and was intended to assist organizations look beyond financially weighted Performance Management Systems. Their underlying premise was ‘what you measure is what you get’. (Fenton–O’Creevy, 2003, pp 14-7).
In the mid 1980s, and into the 1990s, business leaders realized that a renewed focus on quality was required to continue to compete in an expanding global market. (NIST, 2010) Consequently, several strategic frameworks were developed for managing, and measuring organizational performance. Among them were the Malcomb Baldrige National Quality Award, which was created by and act of congress and signed into law by the President in 1987, and The Balanced Scorecard, which is a performance management tool that was born out of research conducted in the late 1980s and early 1990s by Robert S. Kaplan, and David P. Norton published in 1996 (Kaplan, 1996). Initially the renewed emphasis on quality management systems was a reaction to the LEAN approach
Danielle, your presentation on Utilizing EHR on Patient Safety and Health with the balance scorecard was very good and informative. The layout, color scheme, and design was very welcoming. Also, you were very articulate and clear. In addition, you provided very good points in your balance scorecard presentation such as:
Financial statements are a vital factor of any business organization; they show where a company’s money came from, where it went, and where it is now, according to Securities and Exchange Commission website (2008). In addition, four main financial statements consist of the balance sheet, income statement, cash flow statement, and statement of shareholders’ equity. These four financial statements will be evaluated from Nike Inc. and more in depth information will be included from information on the previous paper which will be link to the working capital strategies. Furthermore, a detail working capital recommendation to senior management will be included and the impact of Nike Inc. revenue increase of their working capital.
The balanced scorecard serves a metric for achievement. (BMW Financial Services, 2008) The balance scorecard along with the employee annual review determines employee merit increase each year. Short term incentive plans are plans that focus on achieving performance goals for the year which contribute to sustainable shareholder value. BMW Financial Services has an associate bonus program.
The balanced scorecard is a continuous, strategic analysis of the organisation from multiple perspectives commonly approached by analysing the four perspectives of financial, learning and growth, customer and internal business processes. A combination of financial and non-financial performance measures are used in this analysis. Financial information is measured in dollars or ratios of dollars and compares forecasts to actual results, whereas nonfinancial information, that cannot be measured in dollars, includes data on areas such as defect rates, throughput time and employee retention (Eldenburg et. al. 2014, p. 699). Interestingly, the Balance Scorecard MCS was developed to balance the undue emphasis of the financial performance focus of organisations, with non financial indicators, particularly in the western english speaking countries such as the United States of America and the United Kingdom (Otley 1994, p.
The Balanced Scorecard is a strategic planning and management system used to align business activities to the vision and strategy of the organization by monitoring performance against strategic goals. It is used extensively in business and industry, government and non-profit organizations worldwide to provide a framework that not only provides performance measurements, but helps planners identify what should be done and measured.
Therefore, having a clear vision and strategy for the business is the key to the success of the Balanced Scorecard (Haapasalo, Ingalsuo, & Lenkkeri, 2006). The popularity of BSC is related from the fact that it has demonstrated its effectiveness through different research designs and it also offers a clear prescription as to what should companies measure in order to get a balanced financial prospective. Furthermore, working with scorecards, managers are able to clarify and operationalize strategies as it performs an integrative function by bringing together disparate measures in a single report (Knott, 2006). Feedbacks for internal process and external outcomes are provided through this performance management approach, focusing on four perspectives which are: Financials, Customer Perspective, Internal-Business Processes, Learning and Growth (Kaplan & Norton, 1996). Balanced Scorecards also helps companies to explore and find causes and effect relationships between those four areas in order to continuously improve strategic results and performance. The terms “lead and lag indicators” are used to indicate that the
The first aspect of the balanced scorecard is the financial perspective, which is responsible for answering the following questions: “To succeed financially, how should we appear to our shareholders?” Our finance objective for Google is to increase net revenue. Google’s revenue has shown a steady growth over the years. Google’ s revenue in 2011 was 37,905,000 and in 2012 it was 50,175,000. In one year, Google manage to exceed its 2011 revenue by 12,270,000. Google, is currently in their fourth quarter of 2013. Each quarter’s revenue in 2013 is noticeably greater than the quarters in 2012. In the third quarter of 2013, Google generated total revenues of 14,893,000, compared to 2012 third quarter of 13,304,000
Performance management is a useful and powerful tool that can be used by managers to identify what areas of their organisation they need to improve to increase the organisation’s overall performance. The idea of a balanced scorecard enforces a sensible distribution of resources and effort across all aspect of performance an organisation is, or should be, concerned with.