It is important to develop a company-specific IT balanced scorecard based on a standardized model. The balanced scorecard seeks to establish a framework in which employee development would be enhanced. Employee training is prioritized to ensure that they improve their skills, knowledge, and attitudes towards organizational development.
Knowledge is perceived as an important resource because it facilitates them to be creative and innovative in their responsibilities. Self-improvement is important because they become competent to deal with different challenges in the workplace. The modern business environment prompts organizations to focus on employee development in order to deal with dynamism. They need to be ready for any changes in customer preferences and job specifications.
Metrics are implemented in the organization to guide managers and ensure that they can identify flaws in the employees. The management will be in a position to plan for their training needs to ensure that they remain competent. Learning is perceived as an important step and the employees are assigned different mentors to influence their attitudes.
High performance systems are devised to facilitate employees to contribute in decision-making process. Employees learn to be flexible depending on the schedules in the organization. The organization becomes an area of continuous improvement of life, skills, and expertise….
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Get your writing assignment done in 4 simple steps 1 Fill in order details Submit your instructions to writers for free! Start receiving proposals from writers. Summary of the Area of Research The balanced scorecard was developed to aid management teams to boost their strategies through measurement and follow-up.
Identification of the Potential Areas for Application to a Wholesale Organization Learning and Growth The balanced scorecard seeks to establish a framework in which employee development would be enhanced. The organization becomes an area of continuous improvement of life, skills, and expertise… Creating a fascinating story that will both reveal your strongest traits and depict you as a real human being, not a perfect ideal, can be a real struggle.
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Get free study materials Samples. Send me the link. Follow us Essayshark on Facebook. Essayshark on Google Plus. Essayshark on Twitter Tweet. Learn how our service works. The balanced scorecard includes both financial and non financial information, it help managers to balances short-term and long-term interests when they make decisions Kang and Fredin, Balanced scorecard objectives and metrics are linked, this linkage includes not only the cause-and-effect relationship, but also including outcome measures and results in a measure of combined, ultimately reflected in the organizational strategy.
In fact, recently the balanced scorecard has been used by 60 percent of Fortune companies in the world Lipe and Salterio, , p Financial measure is the important one in balanced scorecard; it define the long-term goals in decision making, and it also can reflect the corporate strategy, shareholder satisfaction, strategy implementation and enforcement which are to contribute to improving the profitability of company.
Financial measures are usually associated with profitability, operating income, return on capital, economic value added measure, or may be the rapid increase in sales and to create cash flow. The customer perspective indicators usually include market and account share, customer satisfaction, customer retention, customer acquisition and customer profitability. Hence, the managers can throw these information to clarify the need of customers and market strategies, and then to create an excellent financial return.
In this perspective, managers should confirm the organization the key internal processes, these processes can help business units to provide value proposition to attract and retain customers in the target segment market, to complete the corporate financial objectives and to achieve shareholder expectations of excellent financial returns. In fact, this strategy is always formulated after evaluating financial and customer perspectives.
Hence, it is closely linked to customers. It emphasizes that if the enterprise want to create long-term growth and improvement, they should establish the foundation of framework. It is a future key successful factor. The another three perspectives of the balanced scorecard will generally reveal the actual ability of the enterprise with the necessary breakthrough performance gap between the ability, in order to bridge this gap, companies need to invest in improving employee technology, organizational procedures and the management system, these are the goals that balanced scorecard learning and growth perspective pursuit for, such as employee satisfaction, employee retention, employee training and skills, and the drivers of these indicators.
Balanced scorecard is an effective system to evaluate the performance. According to Shutibhinyo , p4 , companies usually use balanced scorecard to achieve their both short-term and long-term strategic goals, to communicate with the strategy to guarantee that employees has the same working objectives, and based on company strategy to align and integrate corporate planning.
It indicates that balanced scorecard reflects the balance between the financial and non-financial measure, the balance between long-term goals and short-term goals, the external and internal balance, the results and the process balance, the management performance and results of operations balance. They reflect the organization operating conditions, contribute the performance evaluation tends to balance and complete, and it improve the long-term development, it is conducive to the development of organization.
In fact, many companies have been benefited from balanced scorecard. The result is rapid and dramatic. Adverse cash flow changed dramatically and the investment rate returns to the top among the same industry. And we have a conversation. In the past we were a bunch of controllers sitting around talking about variances.
What should we keep doing, what should we stop doing? What resources do we need to get back on track, not explaining a negative variance due to some volume mix.
The process enables me to see how the NBU managers think, plan, and execute. Another successful example is Chemical Retail Bank, the Balanced Scorecard was introduced in to help banks absorb and merge another bank, the introduction of an integrated financial service, to accelerate the use of electronic banking. Balanced Scorecard emphasizes the causal relationship in performance evaluation system, by the completion of the financial perspective, customer perspective, internal business, and learning and growth assessment indicators to achieve the ultimate financial goals.
Here, balanced scorecard is used to associate the original objectives and the translation of management strategy Figge, Hahn, Schaltegger and Wagner, , p Apart from this, the study by Davis and Albright , p pointed out that the balanced scorecard can improve the financial performance to some extent, they supposed that compared with the traditional management accounting system, it can improve the financial performance.
That means even in financial perspective the balanced scorecard performance system is still better compared with the traditional system which only focus on financial information, so in fact, because balanced scorecard have four perspectives which were connected with each effectively, to some extent it will improve not only financial performance of organization but also another performance. It is obviously that balanced scorecard have many beneficial perspectives in organization performance system, but how it work effectively with organization strategic management system?
A role of balanced scorecard in strategic management accounting According to Figge, Hahn, Schaltegger and Wagner , p , the balanced scorecard provides a valuable methods for managers, managers need a model which includes both financial and nonfinancial measures, with the cause relationship between customers, financial, internal business process, and capabilities.
That supported that balanced scorecard is an effective system for many companies, but in fact it is not suitable for every companies. Through the literature review, balanced scorecard is suitable for these organizations: Lack of effective employee performance management system. The company which hope to achieve breakthrough performance. The firm hopes to achieve long-term development and to create a famous brand. The company needs standardized management; improve the overall management level and improve organizational strategic management capacity.
The firm which want a faster response with the market. Implementation difficulties and solution. There is no doubt that balanced scorecard is a successful performance evaluation system, but in fact how to use balanced scorecard efficiently is hard to do.
In fact, sometimes balanced scorecard may not be a suitable for some companies, because balanced scorecard is not easy to implement. According to Norreklitt , p , he address an example, if now is a raining weather, the floor will be wet, but conversely, it can not be concluded that if the floor is wet, the weather must be raining, it may be snowy or just sprinkled by automatic sprinkler. Therefore, use the balanced scorecard not means success. Norreklit also indicated , p that the balanced scorecard focuses on to solve the strategy implementation problems, but the management control system is a hierarchical system which is from top to bottom, so the balanced scorecard is hard to carry out in the system, and to some extent it is a questionable model in strategic management accounting.
All the information reflects that how to use the balanced scorecard in right way in strategic management accounting is very hard but necessary. As a result, in what way to use the balanced scorecard effectively and what company is suitable for balanced scorecard implementation?
Let through some different examples to analysis this problem. Before address the examples, some barriers of balanced scorecard implementation should be showed, the barriers are existed in organization when implement the balanced scorecard, there are some different from different study. The second study is suggested by Shields , the internal processes are related to behavioral and organizational implementation, and it is stored with variables. Finally, Strebel showed that when the organization does the implementation, the different voices will come into the public, that is a barrier when the new system is implemented.
The balanced scorecard has evolved from its early use as a simple performance measurement framework to a full strategic planning and management system. The "new" balanced scorecard transforms an organization's strategic plan from an attractive but passive document into the "marching orders" for the organization on a daily basis.
The balanced Scorecard is a report consisting not only out of financial measures but also consists out of non-financial measures. The balanced scorecard consists out of four different perspectives; financial perspectives, customer perspective, innovating and learning perspective and internal business perspective(Kaplan and Norton, ).
Balanced Scorecard of Shari’s Beauty Line Business - Introduction The balanced scorecard can be defined as the system that manage the strategic planning of the organization and assist the . A role of balanced scorecard in strategic management accounting According to Figge, Hahn, Schaltegger and Wagner (, p), the balanced scorecard provides a valuable methods for managers, managers need a model which includes both financial and nonfinancial measures, with the cause relationship between customers, financial, internal business process, and capabilities.
Custom Balanced Scorecard Essay Writing Service || Balanced Scorecard Essay samples, help Introduction of the spark plug in the United States has brought a great impact on the automotive manufacturing industry. Balanced scorecard is strategic planning and management system used for business and industry, government, non profit organizations worldwide. it is used for business activities like vision and strategy of organization to improve internal and external communication to monitor .