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Balanced scorecard The notion of the Balanced Scorecard was developed by Robert Kaplan and David Norton in which has already widely used by many companies in the world Helen Atkinson, The balanced scorecard not only focuses on the financial information but also nonfinancial information.
However, with the rapid development the value of intangible assets such as intelligence becomes more important. Because the traditional management performance system always focuses on financial aspect.
We will write a custom essay sample on Balanced scorecard or any similar topic specifically for you Do Not Waste HIRE WRITER According to Martinsons, Davison and Tse, nowadays the modern companies should focus on market segments not only the financial measures and also need to improve the technology to develop the processes.
It means financial measures are not only method to do decision making.
One problem is that the value of the intangible assets created by employees such as intellectual property and competitive advantage can not be fully reflected in the financial measures.
In addition, financial measure is suitable for managers to make short-term decisions rather than long-term decisions Kang and Fredin, To some extent, balanced scorecard can avoid these problems.
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.
- 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 , ¶ 1). The Balanced Score Card is a very useful tool for managers because it organizes information from different departments to create a picture of the hotels operations and the success of those operations. The Balanced Score Card is a tool that is used by business professionals, the information that this found on this card is useful to the managers for a variety of reasons. However the primary use is to monitor the organizations progress towards it vision and its mission.
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.The Balanced Score Card is a very useful tool for managers because it organizes information from different departments to create a picture of the hotels operations and the success of those operations.
Balanced Scorecard Essays (Examples) Essay Paper #: Construction for Apple Apple Measure Target Action Financial Increased profitability Greater dominance Increase earnings per share / revenues. Balanced Score Card Categories Financial .
- 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 , ¶ 1).
The notion of the Balanced Scorecard was developed by Robert Kaplan and David Norton in which has already widely used by many companies in the world (Helen Atkinson, ).
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 organizations. Balanced Score Card Analysis This Research Paper Balanced Score Card Analysis and other 64,+ term papers, college essay examples and free essays are available now on regardbouddhiste.com Autor: simahmoodi • February 8, • Research Paper • 3, Words (13 Pages) • 2, Views4/4(1).