Balanced Scorecard

 

Balanced Scorecard

 

Management action upon partial improvement after use of a balanced scorecard

With the balanced scorecard leading to the improvement of some performance measures while others do not, it is important to do another planning and changing the measurement components to reflect all necessary factors.
How the Balanced Scorecard communicates strategy to the organization

The balanced scorecard is known to be a communicator of the organization’s strategy. It communicates strategy of a company through day to day activities. The balanced scorecard communicates the strategy of an organization in a practical and easy to understand day to day activities (Grundy & Johnson & Scholes, 1998).

How strategy is translated into performance measures

The translation of strategy into measurement measures is done through a four stage process. One of the stages is translating the vision. The strategy vision is taken as a statement, which is viewed as objective or measures of the company.

The second stage involves communicating and linking the strategy to all aspects of the business. This is followed by business planning and finally acting on feedback. All these ensure that the strategy of the company is translated into a measure.

Why the Balanced Scorecard differs from company to company

The balanced scorecard differs from company to company because the activities of all the companies do not the same process (Jones & Hill2009). This is because the evaluation of each company’s activities varies due to the various perspectives taken. These different perspectives are concerned with Finances, customers, processes and innovation among others.

The responsibility of the implementation of a balanced scorecard

The responsibility of implementing a balanced scorecard should be given to a special team. This will enable the team plan, manage and implement a balanced scorecard.
Creation and use of a balanced scorecard

The process of creating and using a balanced scorecard is not too complicated. A company needs to come up with company vision, strategies, perspectives, important success factors and the necessary measures (Gupta, 2008). Then come up with the best action plans for the company. This will be followed by deployment of the balanced scorecard. This will be supported by considering the management of this tool.

 

References

Grundy, T. & Johnson, G. & Scholes, K. (1998), Exploring strategic financial management. London, Prentice Hall.

Gupta, A. (2008). Financial Accounting for Management: An Analytical Perspective, Pearson Education India.

Jones, G. & Hill, W. (2009), Strategic Management Essentials. 2nd ed. SouthWestern: Cengage Learning.

 

 

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