...Balanced scorecard is an analysis technique designed to translate an organization's mission statement and overall business strategy. An organization can use the balance scorecard analysis to track progress and manage the implementation of their strategies. The scorecard measures an organization’s performance from four perspectives: (1) financial, the profits and value created for shareholders; (2) customer, the success of the company in its target market; (3) internal business processes, the internal operations that create value for customers; (4) learning and growth, the people and system capabilities that support operations. A company’s strategy influences the measures it uses to track performance in each of these perspectives (Horngren, Datar, & Rajan, 2012, p. 470). UNUM’s success with its balanced scorecard has been the result of getting a number of fundamental things right (Building and Implementing a Balanced Scorecard, Case Study: UNUM Corporation, 1999, p. 13). Vision and Strategy, the vision is the future and the gap between now and the future leads to a plan of action to achieve the vision. How we get to the future involves strategies. UNUM’s strategic goals and measures are to support a clearly defined and meaningful corporate vision (Building and Implementing a Balanced Scorecard, Case Study: UNUM Corporation, 1999, p. 2). Each perspective in UNUM has a vision, quantitative measure and goal. What makes the UNUM scorecard particularly powerful is the strategic implementation...
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...framework called the Balanced Scorecard (BSC), by Robert Kaplan and David Norton, translates an R2i's mission and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system. The BSC was developed to measure both current operating performance and the drivers of future performance. The objectives and measures on a Balanced Scorecard should be derived from the business unit's strategy. A scorecard should contain outcome measures and the performance drivers of those outcomes. The scorecard measures organizational performance across a set of leading and lagging performance indicators grouped into four linked perspectives: financial, customer, internal processes, and learning and growth. Processing complex, unstructured information can be difficult. The BSC enables R2i to track short-term financial results while simultaneously monitoring their progress in building the capabilities and acquiring the intangible assets that generate growth for future financial performance. The BSC enables managers to monitor and adjust the implementation of their strategy, and to make fundamental changes in the strategy itself. The BSC provides a representation of the organization's shared vision. The BSC communicates a holistic model that links individual efforts and accomplishments to business unit objectives. Thus, a shared vision and shared performance model, structured around the Balanced Scorecard, provides an essential...
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...1) They realized that balanced scorecards help the departments look beyond their own operations and they could activate everyone in the company by putting sensible goals related to the main goals of the company. Also it improves communications by providing a focal point and common language around the key value drivers of the organization and it helps IT recognized other business areas which enhance the cooperation among departments. Besides, it would help the company to get to know the needs of the customers and expectations. It might also provide better financial data. 2) In BIOCO way, the company’s vision and strategy are translated into a long-term corporate strategic plan, which in turn is used to design the corporate strategy map. I think it helps the IT department align its goals with it because the balanced scorecards help the departments look beyond their own operation and enhance their cooperation with each other and IT department is not an exception. Using the cascade of balance for each department and knowing how the strategies should be done and assessed in different levels help analyzing the performance of the department; hence for IT department, it helps to have clear ways and meet the company’s demand for the business plan of the company. Therefore; IT has an important role to enhance the communication and cooperation among the departments and make the new way more adjustable for the company. 3) It highly depends on the strategy and vision of a company. But...
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...Communications of the Association for Information Systems Volume 17 Article 8 2-23-2006 Using the Balanced Scorecard to Achieve Sustained IT-Business Alignment: A Case Study Qing Hu Florida Atlantic University, qhu@fau C. Derrick Huang Florida Atlantic University, dhuang@fau Follow this and additional works at: http://aisel.aisnet.org/cais Recommended Citation Hu, Qing and Huang, C. Derrick (2006) "Using the Balanced Scorecard to Achieve Sustained IT-Business Alignment: A Case Study," Communications of the Association for Information Systems: Vol. 17, Article 8. Available at: http://aisel.aisnet.org/cais/vol17/iss1/8 This material is brought to you by the Journals at AIS Electronic Library (AISeL). It has been accepted for inclusion in Communications of the Association for Information Systems by an authorized administrator of AIS Electronic Library (AISeL). For more information, please contact elibrary@aisnet.org. Communications of the Association for Information Systems (Volume 17 2006) 181- 204 181 USING THE BALANCED SCORECARD TO ACHIEVE SUSTAINED IT-BUSINESS ALIGNMENT: A CASE STUDY Qing Hu C. Derrick Huang Department of Information Technology & Operations Management Florida Atlantic University qhu@fau.edu ABSTRACT High levels of investments in IT and related products and services by firms over the last several decades produced only mixed results. Research shows that one of the most significant determinants of successful IT investments...
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...organizational strategies and main principles with performance measurement and management indicators within all areas of service. The balanced scorecard (BSC) is an option for hospitals to measure not only a company’s financial performance but how the company is satisfying its customers and employees. The BSC is designed to manage strategy not tactics (Kocakulah 2007). As of the year 2000, only about 70 of the country’s 6,000 hospitals were using the BSC method. Part of the reason for lag in adoption is hospitals have always used nonfinancial statistics and believed that they were using measures similar to a BSC already. Unfortunately, this is not the case in terms of effectiveness ( ). How to implement an effective BSC is the most important question. The single most critical condition in implementing a BSC is the involvement and ownership of the executive team. The approach is usually top-down. A top level BSC is created for the board of trustees, and then is cascaded down the organization to the department level. This is done with a team-based collaborative approach that consists of an “organizational change expert” as the leader (Kacakulah 2007). This “organizational change expert” should be the head of human resources. A HR manager is best suited for this role in many ways in which will be discussed later ( ). In the case study of Peer Memorial Hospital, Harber (1998) explains that a combination of financial and internal approaches: “The “deliverable” is...
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...he balanced scorecard is a strategic performance measurement system developed by Robert S. Kaplan and David P. Norton to help organizations achieve breakthrough results by embedding strategy at the heart of the organization. Developed 12 years ago, the concept was significantly different from any existing performance measurement system and generated considerable excitement. A variety of applications and variations of the balanced scorecard have emerged since its inception. It was received and used so enthusiastically and effectively that the Harvard Business Review labeled it in 1997 as one of the 75 most influential ideas of the 20th Century. 1 Early on, a navigation metaphor was used to illustrate the need for additional performance measures. Over time, the navigation metaphor expanded to include the process of strategic mapping and decisions about where to lead your company. This article outlines the evolution of the balanced scorecard. BALANCEDSCORECARD: THEINCEPTION In 1990, the Nolan Norton Institute, the research arm of KPMG, sponsored a one-year, multi-company study on the future of performance measurement. David Norton, CEO of Nolan Norton, was the study leader, and Robert Kaplan served as an academic consultant. The 12 companies that formed the original study group believed that the exclusive reliance on financial performance metrics alone was causing their companies to do the wrong things. Many of the activities that create organizational value...
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...BALANCE SCORECARD INTRODUCTION: A Conceptual Framework for Managing Lodging Brands: A Balanced-Scorecard Approach Abstract: The issue of brand management remains a formidable challenge for lodging organizations and lodging brand managers. This challenge is partly due to the fact that effective brand management requires an all-inclusive and comprehensive organizational approach. This paper proposes a framework that uses the balance scorecard (BSC) as the basis for brand management. The framework proposes both a proactive and reactive approach to brand management through the use of performance measures or perspectives, which form the underlying components of the BSC. These are the financial perspective, the customer perspective, process perspective, and the learning perspective. The paper enhances and expands this BSC framework by including a brand maintenance and enhancement component. The concept of balance scorecard was introduced by Kaplan & Norton (1992, 1996, 2007) and they argued that that balance scorecard is a useful tool that tells managers how organization is performing in relation to strategic objectives of organization. Kaplan & Norton(1992) state the four perspectives which are financial perspective,customer perspective,internal business process perspective and learning and growth perspective.These four perspectives are used by managers in order to measure and analyze information. Kalpan and Norton explain these four perspectives which are effective...
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...A critical analysis of Balanced Scorecard as a performance measurement tool: an overview of its usage and sustainability A iti al a alysis of Bala ed “ o e a d as a pe fo TABLE OF CONTENTS a e easu e e t tool: a o e ie of its usage a d sustai a ility TOPICS PAGE i ii iii iv-v LETTER OF TRANSMITTAL DECLARATOIN ACKNOWLEDGEMENT ABSTRACT CHAPTER ONE INTRODUCTION 1.1 Background of the study 1.2 Objective of the study 1.3 Scope of the study 1.4 Methodology 1.5 Limitations of the study BALANCED SCORECARD 2.1 Overview of the Balanced Scorecard (BSC) 2.2 Objective 2.3 Design 2.4 Original design method 2.5 Improved design method 2.6 Popularity 2.7 Variants and alternatives CRITICAL ANALYSIS ON THE CONCEPT & USING OF BALANCED SCORECARD WHETHER IT IS THE UNIVERSAL SOLUTION FOR THE BUSINESS MANAGEMENT? 3.1 Crucial investigation of the concept and using of Balanced Scorecard 3.2 A comprehensive new approach for the measurement and management 3.3 Is the Balanced Scorecard a universal key to the business management? 3.4 Balanced Scorecard: a question of conjecture and application CHAPTER FOUR: THE SUSTAINABILITY OF THE BALANCED SCORECARD 4.1 The Balanced Scorecard: an instrument for sustainability management 4.2 Different possible approaches of integrating environmental and social aspects 4.3 The process of formulating a sustainability Balances Scorecard 4-7 5 5 5 6 7 8-15 9-11 12 12-13 13 14 14 14-15 16-25 CHAPTER TWO CHAPTER THREE 17-21 21-22 22-23 23-25...
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...Balanced scorecard From Wikipedia, the free encyclopedia Jump to: navigation, search The balanced scorecard (BSC) is a strategy performance management tool - a semi-standard structured report, supported by design methods and automation tools, that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions.[1] It is perhaps the best known of several such frameworks (it was the most widely adopted performance management framework reported in the 2010 annual survey of management tools undertaken by Bain & Company.[2]) Since its original incarnation in the early 1990s as a performance measurement tool, the BSC has evolved to become an effective strategy execution framework.[citation needed] The BSC concept as put forth by Drs. Robert S. Kaplan and David P. Norton is now seen as a critical foundation in a holistic strategy execution process that, besides helping organizations articulate strategy in actionable terms, provides a road map for strategy execution, for mobilizing and aligning executives and employees, and making strategy a continual process.[citation needed] Contents [hide] • 1 Characteristics • 2 History • 3 Design o 3.1 Original design method o 3.2 Improved design methods o 3.3 Popularity o 3.4 Variants, alternatives and criticisms • 4 Criticism o 4.1 Balanced Scorecard used for incentive based pay • 5 The...
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...Measuring Business Excellence Performance measurement tools: the Balanced Scorecard and the EFQM Excellence Model S. WongrassameeJ.E.L. SimmonsP.D. Gardiner Article information: To cite this document: S. WongrassameeJ.E.L. SimmonsP.D. Gardiner, (2003),"Performance measurement tools: the Balanced Scorecard and the EFQM Excellence Model", Measuring Business Excellence, Vol. 7 Iss 1 pp. 14 - 29 Permanent link to this document: http://dx.doi.org/10.1108/13683040310466690 Downloaded on: 14 April 2015, At: 10:28 (PT) References: this document contains references to 27 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 13506 times since 2006* Users who downloaded this article also downloaded: Joaquín Gómez Gómez, Micaela Martínez Costa, Ángel R. Martínez Lorente, (2011),"A critical evaluation of the EFQM model", International Journal of Quality & Reliability Management, Vol. 28 Iss 5 pp. 484-502 http://dx.doi.org/10.1108/02656711111132544 Downloaded by MIDDLESEX UNIVERSITY At 10:28 14 April 2015 (PT) Michael Trevor Hides, John Davies, Sue Jackson, (2004),"Implementation of EFQM excellence model self-assessment in the UK higher education sector – lessons learned from other sectors", The TQM Magazine, Vol. 16 Iss 3 pp. 194-201 http:// dx.doi.org/10.1108/09544780410532936 Andy Neely, Mike Gregory, Ken Platts, (1995),"Performance measurement system design: A literature review and research agenda", International...
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...The Balanced Scorecard: Judgmental Effects of Common and Unique Performance Measures Author(s): Marlys Gascho Lipe and Steven E. Salterio Source: The Accounting Review, Vol. 75, No. 3 (Jul., 2000), pp. 283-298 Published by: American Accounting Association Stable URL: http://www.jstor.org/stable/248614 . Accessed: 11/03/2014 05:15 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. . American Accounting Association is collaborating with JSTOR to digitize, preserve and extend access to The Accounting Review. http://www.jstor.org This content downloaded from 131.181.108.165 on Tue, 11 Mar 2014 05:15:52 AM All use subject to JSTOR Terms and Conditions THE ACCOUNTING REVIEW Vol. 75, No. 3 July 2000 pp. 283-298 The Balanced Effects Scorecard: of Common Judgmental and Unique Performance Measures Marlys Gascho Lipe University of Oklahoma Steven E. Salterio University of Waterloo ABSTRACT: The balanced scorecard is a new tool that complements traditional measures of business unit performance. The scorecard...
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...Unit 4 – Peel Memorial Hospital Case Study GB520 Strategic Human Resources Management Professor Andrew Klein May 28, 2013 Introduction Before the 1990s, government funding allowed Canadian health care facilities to provide excellent service and quality. Increasing health care costs changed government funding, requiring providers to be held accountable for more of the financially responsibility in the early 1990s. During the mid-1990s, hospitals and regional health authorities across Canada were under siege from funding restraints, mergers and forced closures. The healthcare industry focused on delivering high-quality patient care and aligning the key stakeholders to the newly created vision during this time frame. To evolve and to survive, Peel Memorial Hospital implemented the Balanced Scorecard performance management system and that is the focus of this case study. The value of and the benefits to be gained when best practices are successfully used from the corporate sector are also highlighted. History and Issues Peel Memorial Hospital in Brampton, Ontario lacked significant targets and tired Mission Statement that tried to be all things to all people (Harber, 1998). Internal surveys revealed that employees were unclear on the organization’s strategic direction and the linkage of various programs and initiatives undertaken. In 1994, Peel Memorial Hospital took on a comprehensive continuous quality improvement training program and was followed by a lot of improvement...
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...RESORT AND HOTEL OPERATION ARGUMENT ESSAY Name: Tuong Vy Dinh Student ID: din12236844 Subject: Resort and Hotel Operations Lecturer: Lynn Richardson Tutor: Ajay Khatter The development of hospitality industry has been putting more pressure on hotel and resort managers. They not only satisfy their customers’ service expectation but also please their hotel owners wants with limited budgets. Although the “balanced scorecard” has been applied recently, it seems to be hard for the managers to adjust the balancing between these desires of two important elements in hotel and resort processes. This essay will analyze these expectations, the application of balanced scorecard in the hotel and resort industry and exam whether it is helpful to solve to conflict between owner and manager or not. In the competitive environment, understanding what customer expect and want is the most significant step to have a good service. According to Parasuraman (1988) and Richard (1997), customer expectations are reflected the service quality and customer satisfaction. However, hotel guests do not use only unique expectation; they may adopt many types of desires to judge hotel service. Predictive expectation- prediction what level of service that the customer will receive and normative expectations – what service that the guest believe that the provider will offer to them, are the most prevalent types being used to evaluate (Tam, M 2005). Moreover, location, furniture, price, hotel category...
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...Balanced scorecard From Wikipedia, the free encyclopedia Jump to: navigation, search Part of a series on Strategy | Strategy | | Major dimensions[hide] * Strategy • Strategic management * Military strategy • Strategic thinking * Strategic planning • Game theory | Thought leaders[hide] * Michael Porter • Henry Mintzberg * Bruce Henderson • Gary Hamel * Jim Collins • Liddell Hart * Carl Von Clausewitz • Sun Tzu | Concepts[hide] * Competitive advantage • Experience curve * Value chain • Portfolio theory * Core competency • Generic strategies | Frameworks & Tools[hide] * SWOT • Five Forces * Balanced scorecard • Strategy map * PEST analysis • Growth–share matrix | * v * t * e | The balanced scorecard (BSC) is a strategy performance management tool - a semi-standard structured report, supported by design methods and automation tools, that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions.[1] The critical characteristics that define a Balanced Scorecard are[2] * its focus on the strategic agenda of the organisation concerned * the selection of a small number of data items to monitor * a mix of financial and non-financial data items. Contents [hide] * 1 Use * 2 History * 3 Characteristics * 4 Design * 4.1 First Generation Balanced Scorecard * 4.2 Second Generation Balanced...
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...Case Study 7-2 Ran Niu 1. What benefits has BIOCO realized from its use of balanced scorecards? A balanced scorecard has four perspectives, Customer perspective, internal business perspective, Innovation and learning perspective, and financial perspectives. By using balanced scorecards, BIOCO knows what the customers needed is. It helps BIOCO to fulfill customers’ need better. For internal business perspective part, BIOCO can clear the corporate vision and strategy. BIOCO can adjust the strategy according to the pervious balanced scorecards. Also the balanced scorecards link everyone in the company and enhance the communications between each other. Meanwhile, Scorecards detailed the company’s business goals to everyone and guide every employee to work for the business goals. It will help company to meet customers’ expectations. Also balanced scorecard help BIOCO find its disadvantage and find a way to solve the problem. By helping meeting the customer expectations and improve the company itself, BIOCO can achieve a better financial principle. All of these are the benefits for BIOCO from using the balanced scorecards. 2. Do you think the BIOCO way was useful in helping the IT department align its goals with that of the company? Why or why not? In BIOCO way, the company’s vision and strategy are translated into a long-term corporate strategic plan, which in turn is used to generate the corporate strategy map. I think it help the IT department align its goals with it. In order...
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