BALANCED SCORECARD

Current issues in Balance Scorecard

Current issues in Balance Scorecard

Balanced Scorecard

Balanced Scorecard is a methodology developed to organize, disseminate and control the execution of the strategy of organizations. A planning strategy alone does not help the high management or staff members to implement and monitor the objectives are being met, and to what extent. The Balanced Scorecard helps managers of businesses to regularly monitor compliance with the goals allowing you to take action and immediate prevention before problems escalate to very costly and irreversible. The Balanced Scorecard is compared with the control command of an aircraft. It controls fuel levels, altitude, inclination, speed , distance, oxygen during the flight, in the same way, the BSC controls the level of compliance with the objectives of sales , expenses , costs , productivity , satisfaction of the customer , processes , motivation of staff , training to prevent managers and executives divert their efforts on activities that are out of the business strategy (Radnor, 2003, 174).

Determination of Balanced Scorecard

Objectives to be achieved

Measuring or observable parameters, which measure progress towards achieving the objectives,

Goals, or the specific value of the measurement we want to achieve and

Initiatives, projects or programs to be launched to achieve these goals.

Perspectives of Balanced Scorecard

Financial Outlook

The financial perspective is aimed at maximizing the benefits. It defines the objectives to encourage the owners or shareholders to assure continued funding for the organization. A perspective which verifies the achievement of corporate objectives which include three dimensions is profitability, growth and value shareholder.

 

Customer Perspective

It refers to all activities that generate value and thus increase the competitiveness of the company. Such activities allow you to see how customers perceive the value offered, so reward the organization with the financial results it expected. That is because the perception depends on the ability to deliver value and communicate. They also form the core area of a well implemented, which verifies the extent to which customers are loyal and are satisfied. Speakers in these perspective four major dimensions: time, quality, product performance and service, and cost of ownership (Ahn, 2001, 441).

 

Internal Process Perspective

In this perspective identifies the critical internal processes in which the organization should be excellent. This allows perceived target delivery according to the client's objective, and analyzes the internal process that directly affects customer satisfaction. It often encompasses three dimensions: cycle time, quality and productivity (Moller, 2004, 14).

 

Innovation and learning perspective

It is the base that will achieve the objectives of the other perspectives of the WCC. Organizations must invest in training, enhance the systems and information technology, and coordinate procedures and work routines more efficiently. Participate of these three dimensions are: market innovation, learning and continuous operational improvement, as well as intellectual assets.

General Issues

In companies when they are close to completing one year, they implement the BSC as a tool for implementing the strategy and management control. It is not easy for everyone, and at times, when trying to enter a different conversation in a different mood and logic in the maelstrom of everyday life (Sidiropoulos, 2004, 6). After my experience and what I read at this ...