BALANCED SCORECARD

Balanced Scorecard - Case Study Analysis



Balanced Scorecard - Case Study Analysis

Introduction

In the present corporate world, the usage of balanced scorecards (BSC) plays a major role in the continuous enhancement of the organizational performance. Corporations who use BSC are able to realize the wants and needs of their customers more effectively, enabling them to design such strategies that would lead them to a better market position. In this regard, we can study the case of Saatchi and Saatchi, the company that achieved remarkable success when it implemented BSC. Therefore, it can be considered that the BSC implementation can really help the company to grow rapidly on a continuous pace. It also unlocks several opportunities for the organizations to design new strategies in order to achieve a better marketing position and to enlarge their market share by attracting a greater number of clients and customers.

Balance Scorecard

In the early 90's Professor of Business School at Harvard University (Harvard Business School), Robert Kaplan (Robert Kaplan) and the American management consultant David Norton (David Norton) developed a new approach to strategic management. His method they called the balanced scorecard (Balanced Scorecard, BSC) - MSP.

In the Balanced Scorecard is proposed to consider the organization in terms of four perspectives (points of view), to develop quantitative indicators, collect data and analyze them according to each of these perspectives:

The prospect of learning and development: This perspective includes employee training and corporate culture, as in the individual level and at the corporate level. The company, employing educated, employees become the main resource. In today's environment of rapid technological change, knowledge workers need to constantly improve. Government agencies are often unable to recruit new technically trained workers, while reducing the training of its employees. This is the main feature of the "brain drain" that must be stopped. Certain indicators should demonstrate leadership where to focus resources on training for them to bring the maximum benefit. In any case, learning and development are an important foundation for the success of any progressive organization.

Perspective of business processes: This perspective refers to internal business processes. The indicators of this trend allows managers to determine how well the company is whether the products and services to customer requirements. These indicators need to be carefully designed only for those who is vague about business processes - such work cannot be entrusted to consultants from the outside.

The prospect clients: Modern management philosophy into account the growing importance of customer focus and satisfaction in every sphere. The main criterion is the following: if customers are not satisfied, they will find other suppliers. Low efficiency in this direction - a clear indicator of future decline of the company, even if the current financial picture is quite favorable. To develop indicators of satisfaction, it is necessary to analyze the types of clients and processes that provided a product or service.

Financial outlook: Kaplan and Norton did not deny the possibility of the use of traditional financial data. Timely and clear information on capital is always important, so managers should ...