Balanced Scorecard

As menti onenessd in the door above, antithetical line of products formation types bring a signifi put upt different inter mental attitude of strategical business oerlook and evaluation. Consider for example, a firm that find sheets of paper. The production extremityes argon sanitary defined and relatively stable, operable skills are specialized to gain operating efficiencies. There are relatively no strict challenge from the same antagonist, because the market share are split equally, as long as they keep the productions quality and maintain the cheapest address of production.Regardless of whether the environment is stable or dynamic, an ecesis needs to exercise control over its operations so that its objectives are achieved as preliminary business planning. Firm that operate in a stable environment with standardized products and processes and low competitive pressures will employ the less complex functional business strategic. While the much complex firm with the d ynamic competitor pressure should be consider to employ the more than complex strategic control system (Shaw, 2004).Concerning the development of strategic control over a corporation, this paper will discuss around the equilibrise card (BSC) for a bon ton named Puppy Luv Doggy twenty- quad hours Care. Furthermore, it in any case develops at least three strategic objectives for separately of the four Balanced bill of fare areas (Financial, guest, Process, and Learning & evolution). 2. Balanced Score Card of Puppy Luv Doggy daylight Care 2. 1. Balanced Score Card The Balanced Scorecard (BSC) is one of the most influential business ideas in the 20th century.It was noned that over one-half of the fortune 1,000 uses the BSC system (Niven, 2006). both(prenominal) people consider it as a form of project way, a form of measurement or controlled value system. Despite the awesome popularity of the concept, we witnessed the practice of the BSC concept surprisingly concentrates on the private sectors. Robert Kaplan and David no(prenominal)ton first introduced the Balanced Scorecard in the early 1990s as a strategic circumspection system that forces managers to focus on the important surgical process poetic rhythm that train to success.There are four positionings of BSC as following 1. Financial sen clocknt This is the standard perspective that everyone uses even forwards the BSC. Even a non-profit organization uses this perspective in place to quietus their books. It measures monetary murders through financial ratios and opposite financial indicators. In the study of Puppy Luv Doggy Day Care, the financial perspective includes strategic objectives in following areas ? Market share ? Revenues and costs ? Profitability? Competitive position 2. Customer Perspective It is a measure of merged pass judgment viewed from the cherish it delivers to nodes. For instance, time taken to process a phone call, result of clients surveys, morsel of com plaints, competitive rankings, etc. In the case of Puppy Luv Doggy Day Care, the Customer Value Perspective includes strategic objectives in following areas ? Customer retention or turnover ? Customer satisfaction ? Customer value 3. Business Process PerspectiveIt measures integrated value from the enhancement of its business processes, ilk time spent prospecting, quality cost, product rework required, etc. In the case of Puppy Luv Doggy Day Care, Process or inherent Operations Perspective includes strategic objectives in following areas ? Measure of process implementation ? Productivity or productivity amendment ? Operations metrics 4. Learning and Growth Perspective This perspective measures corporate value from its scholarship abilities or the overture of its learning processes.Example of activities measures are staff organizeing, employee suggestion and improvement of certain processes as an outcome of the learning process (Balanced Scorecard, 2006). In the case of Puppy Luv Doggy Day Care, the Learning and Growth (Employee) Perspective includes strategic objectives in following areas ? Employee satisfaction ? Employee turnover or retention ? Level of organization capability ? Nature of organization cultivation or climate ? Technological innovation These perspectives are then(prenominal) pliant to various businesses by choosing different drivers for each perspective.The BSC keister in any case keep an eye on and measure correlation between activities, in order to attention ascertain which activities positively impacted others. For instance an online customer service bottomland help reducing telephone calls and time to handle complaints, thus increasing persuasiveness of business processes. According to Kaplan and Norton, there are various utilities of the Balance Scorecard. Some of them are to clarify and update strategy, communicate strategy, adapt unit goals with corporate strategy, link strategic objectives to long term target, etc (B alanced Scorecard, 2006).Balanced ScorecardThe balance scorecard is a worry tool that is apply by the concern of companies to enable them in planning on how to align the business activities to the visual sense and strategy of the organization so as to improve the internal and external processes of the society. Communication is utilise to monitor the organization exercise against the strategic goals that have been set by the management of the organization.The balance scorecard was first developed by Dr Robert Kaplan and David Norton who discovered that the tool would be use to measure the public presentation of the employees of the ships companion so that they would improve on their performance it was used by the management of companies so as to clarify the vision and the strategies and then to translate them into action. According to some economist they noted that an organization was viewed into four perspectives as per the match scorecard. The Learning and growth perspec tiveThis perspective that deals with how the employees elicit be practised in order for them to gain the knowledge and skills that rouse enable them carry out their activities potently. It too deals with the corporate cultural attitudes that join to both the individual and corporate self-improvement so that the attitude for each the individuals and the corporations would change so that they would perform their activities jibe to the needs of the organization and not for their own interests.There had been increased technological changes that have resulted to the management of the organization to train their employees so that they can adapt to those technological, economic and social-economic changes. The business process perspective The perspective deals with the internal business processes.The metric allows the managers of an organization to learn how well their businesses are run and whether the products and work of the conjunction can conform to the customer tastes and p references There are two kinds of processes that are used when determining the goals of a company these are mission oriented processes and the support processes. The mission-oriented processes are used in measurement of the employees performances so as to ward them according to their skills and responsibilities.The processes are usually used in the government offices. The customer perspective The recent research showed that customers contri hardlyed to the success of the company and therefore it is important to live up to their needs because incase they do not get satisfied with the services of their suppliers or traders they can look for alternative suppliers who could meet their needs and this can pose to be a big challenge to the marketing part as the volume of sales of the company can be alter negatively.The management should learn how to satisfy their customers needs by identifying the different types of customers and their different tastes and preferences so that the recla im kind of products and services are produced for them so as to maintain the customers and also to increase the earnings of the company by providing the business of goods and services that are acceptable to the customers. The financial perspective It is important for the management of organization to provide timely and accurate records of data so that they can give the true financial position of a company.The implementation of corporate databases it can enhance beseeming centralization and automation of information that can enhance proper recording of the transactions into the financial statements so that proper analysis of the company can be made. The Tri-cities community Bank was a company that was located in the Midwest United States it had ten branches that were sort into divisions that is the southern discussion section (SD) and Northern Division (ND). The divisions consisted of five branches that were headed by a Branch President and a Branch Chief Loan Officer.The other s taffs that managed the operations of the company were the customer service illustrations, lend representatives, mortgage loan originators, head tellers and the administrative assistants. Mrs. Chris Billing was the Southern Division (SD) president from a Marketing Director because she could improve the performance of the company since she had acquired the necessary skills from college about how to improve the performance of the company.In the year 2000 she implemented the balance scorecard into the organization although there were protests from the Northern Division (ND) presidents who saw the implementation of the strategy as impossibility since they had not had about the strategy before and was not organize for change. Branch A According to the Customer Service Representative of Tri Cites company Bank Mrs.Mary Richards, she state that the implementation of the balanced scorecards would create greater loan volume for the loan balances, deposits and the certificates of deposit and this would lead to lower profit margin, but it would be beneficial to the companys growth. According to Mike Moore she stated the measures of the balanced scorecard were realistic, but the implementation of the measures was difficult because it was the first time for the employees to use them thus getting to learn the measures would mean creation of more time to train all the staff about the implementation of the performance measures.According to Paul Franks he stated that since the employees carried out their activities while using the measures then they would earn more cash bonuses, which improve the companys performance and also the living standards of the employees of the company if they used the measures since proved good returns to the company once they utilized them appropriately. Branch B Mrs.Pamela Wise the loan representative of branch B said that the measures would be used to measure the progress of the company while in the process of trying to achieve its goals and objectives as this would lead to meeting the needs of the community and also to increase the positiveness of the company. The measures would be used in determining the right kinds of promotions and pay rises for the employees, they would also be used to assign the employees according to their skills and knowledge so as to ensure the duties and responsibilities of the company were carried out effectively.Branch C Mr. Bill Sovensen stated that the balanced scorecard measures would promote teamwork among the tellers, loan officer and the customer service representatives much(prenominal) that they would enable them to discuss the goals of the organization and also be in a position to understand the activities of the buzzword so as to promote effective implementation of the companys goals and objectives. The scorecard measures would enable the management of the company to achieve goals such as selling, cross-selling, and the goal of making customers to feel homy with the services of the bank.The Administrative Assistant Mr. Luo Martin said the balanced scorecard measures would lead to the successful implementation of the goals and objectives of a company. The success of the company would led to the management to organization of recreational places that would be used to appreciate the efforts of the employees so as to motivate them to work harder in their duties and responsibilities and also to avoid employee turnover as it could affect the reputation and performance of the company. Branch B According to Mr.Gray metalworker he stated that the balanced scorecards were important but it was important for the management of the company to choose measures that were relevant to the managements growth. Mr. Al Taylor stated that the measures would lead to achievement of the companys goals. Branch E The balanced scorecard would be used to compare the performance of the company with other companies so that the company could keep track of the companys performance so that th e right measures could be put in place in order to enable the company to compete effectively with its competitorIt was noted that in order for the organization to improve in its performance it had to the implement the four perspectives of the balanced scorecard into its organization these were financial measures, customer measure, internal business measures and the retention measures and the learning and the growth perspective. The management of the company Northern Division should have implemented the balanced scorecard into the company in order for it to achieve its goals and objectives.The benefits of the perspectives were that if one perspective was good then other would also improve, for example if the internal perspective improved then the internal processes would also improve. If the customers were satisfied with the services that they needed then they would continue to purchase the companys products and also use their services and this would boost the performance of the comp any .The sales volume of the company would improve if the companys financial status improved then the management of the company would be in a position to achieve its strategies successfully, if the companys strategy would be good then this would be translated to increased returns for the company and the application of the financial measures would be done in an effective and efficient manner.It was reported that if the employees were trained about sales effectiveness, customer service, product profitability and local bank knowledge, they would be in a better position to serve their customers since the knowledge and skills acquired would enable them to gain relevant experience of how to improve the performance of the company. The management of the bank also noted that the training programs given to the employees such as the in house tests on various training topics, higher-quality referrals and cross-self proposals they would equip the employees with right techniques to handle the com panys activities.The implementation of the programs would lead to higher customer satisfaction and it would also lead to the management of the company to learn more techniques of retaining their customers so as to achieve high sales volume of the companys products and services. References Burgelman R A. and. Grove. A. S. (1996) Strategic Dissonance . California. California Management examine, Vol. 38, No. 2. pp. 8-28. Kaplan, R. S. and Norton. D. P. (1996) Using the Balanced Scorecard as a StrategicManagement System. Harvard Business Review 74, no. 1 75+. (May be accessed at http//www. hbsp. harvard. edu/frames/groups/hbr/janfeb96/96107. html). Liedtka J. M. and Rosenblum J. W. (1996) Shaping Conversations reservation Strategy, Making Change. California. California Management Review, Vol. 39, No. 1. , pp. 141-157. Marsh, P. and et all. (1988). Managing Strategic Investment Decisions in Large Diversified Companies London. London Business School.