...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...
Words: 5209 - Pages: 21
...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...
Words: 931 - Pages: 4
...M5 GROUP ASSIGNMENT QUESTION 1: There exist a critical relationship between individual job performance, job design and organizational design. Analyse this relationship from a theoretical perspective and contrast at least two different views in this regard. Individual job performance Performance is based on knowledge and skills or experience. The individuals will perform well if the management takes care of the following actions:- • Proper planning • Monitoring • Evaluation and review • Coaching The development of the strategic plan by the top management is a must because it indicates a road map for the organisation. It shows where the organisation is heading. On top of that, each and every unit or department needs to have a business plan. The development of the performance agreement is very important because it indicates the roles and responsibilities and the time it will take for each activity to be completed. Key Results Area (KRA) is developed from the strategic plan of the organization. Motivation is a key to success of any project. In Government organisation such as the Department of Water Affairs (DWA), the performance of each and every employee is measured through the signing of the performance agreement which is reviewed quarterly, half yearly and eventually annually. At the end of the financial year (March), the quarterly reports are combined for final annual assessment. These performance agreements are based on the business plan of the...
Words: 1383 - Pages: 6
...Mecklenburg County positioned for a tough economy through a Customer-Focused Balanced Scorecard Grantham University BA510 Accounting Professor Ezewuchi Amaefule March 24, 2015 Abstract Management’s ability to affectively plan, control, and make good financial decisions in accounting practices are an essential component to achieving organizational profitability. Budgetary restraints, increased operational costs, the economy, and the ultimately the needs of the customer must also be considered to achieve success. When the managerial approach is to evaluate the cause-and effect of both financial and process performance measures, properly aligned to the organization’s strategic goals and objectives, this poses organizations for success, such as, Mecklenburg County in position for a tough economy through a customer-focused balance scorecard, necessary to optimize sustainability and achieve the organization’s overall goals. Mecklenburg County in position for a tough economy through a Customer-focused Balance Scorecard Harvard University Professors, Kaplan and Norton, are credited as inventors of the Balanced Scorecard (BSC). A BSC is a tool organizations use to link strategic goals to operational objectives, through performance measures, to promote successful outcomes. (Snell, Scott & Bohlander, p. 372, 2013). Through BSC, management monitors performance measures from four perspectives...
Words: 792 - Pages: 4
...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...
Words: 10563 - Pages: 43
...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...
Words: 1680 - Pages: 7
...Laneta Washington Quality in Practice: Using the Balance Scorecard at USPS BSOP 588 Professor Walter Mamak April 3, 2014 There are many different companies that are always focusing on improving their quality management within their organizations. In order for companies to stay at the top of their industry, they must always look to improve and make sure that they are building and meeting all the needs and levels of the business. Many different companies use different techniques and tools to initiate quality management for the business as a whole and then internal and external customers. The ‘Balance Scorecard’ was one of the major tools that USPS used to measure, evaluate, and improve their quality management within the business, with the employees, and of course with their customers. ‘The balance scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organization worldwide to align business activities to the vision and strategy for the organization, improve internal and external communications, and monitor organization performance against strategic goals,’ ("Balanced scorecard basics," 2014). I believe that the balance scorecard is one of the best tools to use when trying to measure and evaluate different levels of the organization; which have a common goal. The voice of the ‘Employee’ is very important when supporting improved internal processes, ‘the Voice of the Business. This is true...
Words: 1548 - Pages: 7
...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...
Words: 1436 - Pages: 6
...Week One – Case Study One “Success and Challenges of Balanced Scorecard at Philips” Name: Priyanka Gandhi Institution: Fitchburg State University Course: Select Topics in Advance Managerial Accounting – MGMT 9034 Professor: Dr. Beverley Hollingsworth Date: January 25, 2015 Introduction Philips is a Netherlands based technology company headquartered in Amsterdam with three main divisions namely, Philips Consumer Lifestyle, Philips Healthcare and Philips Lighting. It is the largest manufacturer of lighting in the world. After a dismal performance during the 1990s, Philips decided to restructure the company. High manufacturing costs, growing competition etc made Philips realize the need to transform. It then came up with Business Excellence through Speed and Teamwork (BEST) program aimed at excellence in every aspect of business. Balance Scorecard was one of the tools selected under BEST. The Balanced Scorecard is an organizational performance measurement tool. This system helps in the measurement of both financial and non-financial factors that contribute towards organization’s future growth and profitability. Based on the organization’s vision, mission and strategy it views the organization in four different perspectives namely, 1) Financial Perspective 2) Customer perspective 3) Process perspective 4) Learning and growth perspective In terms of the above perspectives, the various subsidiaries of Philips will group their strategies, set targets and...
Words: 1760 - Pages: 8
... Topic: Recent Balance Scorecard Theory & Practices Of Bangladeshi Company SUBMITTED TO: Md. ABUL KASHEM Associate professor SUBMITTED BY: RIFFAT ARA RAFIQ; ID: 61018-11-061 SESSION: Fall’ 2011 DATE OF SUBMISSION: 26th DECEMBER ’2011 DEPARTMENT OF MANAGEMENT INFORMATION SYSTEM Acknowledgement I express my gratefulness to Almighty Allah for his kindness, which enabled us to complete this work properly and in time I am grateful to our course teacher, Md. Abul Kashem, Associate Professor , Department of Management information system, University of Dhaka for providing us all the information about information technology, for his guidance, constructive criticism, valuable suggestions and untiring help throughout the course of this work. I am highly delighted to express our cordial gratitude and veneration to our parents for their constant help, affection support and sacrifices. The Author December 26th , 2011 Letter of transmittal Date: 26/12/2011 To, Md. Abul Kashem, Associate Professor Department of Management Information System, University of Dhaka. Sub: Application for the submission of Term Paper. Sir, I respectfully state that, I am a student of EMBA program in this department at the session of spring’2011.you have asked for the term paper on 28th November’2011. The topic of this assignment is Balance Scorecard theory & practice. The last date...
Words: 6477 - Pages: 26
...the new president of TCCB’s southern division (SD), believes that the Balanced Scorecard (BSC) could be used to boost TCCB’s financial performance but the CEO was a bit apprehensive. He reluctantly agreed to allow her to test the concept in the five branches of her division and be prepared to introduce it to the Board of Directors in three months. The BSC is used to help an organizational align activities to its vision and strategy, enhance external and internal communications, and evaluate organizational performance in comparison to achievement of strategic goals. One of BSC’s major benefits relate to causal relationship mapping from nonfinancial performance measures to key financial measures monitored by TCCB. Nonfinancial measures of TCCB are classified into Learning and Growth Perspective, Internal Business Process Perspective, and Customer Focus Perspective. Categorization of Measures into Balanced Scorecard Perspectives Learning/Growth Internal Business Processes Customer Service Financial -Employee Training Hours -Employee Satisfaction -Employee Turnover -Sales Calls to Potential Customers -Referrals -New Products Introduced -Cross-sells -Customer Satisfaction -Customer Retention -Thank-You Calls/ Cards to New and Existing Customers. -Number of Products per Customer -New Accounts -Number of New Customers -Loan Balances -Deposit Balances -Noninterest-Income -New Loans Created As I begin with...
Words: 1263 - Pages: 6
...Introduction This essay seeks to discuss the factors that facilitate change in health and social care. This can be achieved by assessing the challenges that the major factors of change bring using the Care Quality Commission of the Quality Care Commission for the Royal United Hospital Bath NHS Trust (RUHB). The second task aims to evaluate contemporary changes being inaugurated in the provision of health and social care services. In addition to this, a strategy and criteria will be devised in order to measure these recent changes including how the impact of these changes can be measured and evaluated. LO1 1.1 Explain the key factors that drive change in health and social care services ‘Change’ within an organization sometimes refers to organizational change in health and social care is the movement from a current state through a state of transition to a state in the future (Richards, 2012). The impetus of change within an organization may come from within and outside. These are known as the internal and external drivers of change. This can be explained using PEST and SWOT analysis. PEST analysis (Political, Economic, Social and Technological analysis) describes a framework of environmental factors considered in the strategic management of an organisation (Friesner, 2014). Political factors of change include change of government and policies within the NHS in the form of legislations. For example, when the Coalition government came to power in 2010, it embarked on reforming...
Words: 2066 - Pages: 9
...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...
Words: 829 - Pages: 4
...World Journal of Social Sciences Vol. 1. No. 1. March 2011. Pp. 148 - 164 Significance of Management Accounting Techniques in Decision-making: An Empirical Study on Manufacturing Organizations in Bangladesh Farjana Yeshmin* and Md. Amran Hossan** Management accounting is concerned with gathering and reporting internal financial information to facilitate decision-making process. As management accounting is not required to conform to national accounting standards, it allows business to customize the management accounting techniques as per demand of company. As a process of this customization, some advanced quantitative as well as number of qualitative techniques accompany with the traditional techniques, have been emerged to cater the information need in decision making. This study attempts to measure the significance of management accounting techniques in decision making of the selected manufacturing organizations in Bangladesh. In doing so, a total of 74 manufacturing organizations have been surveyed with a structured questionnaire by using 5 point Likert Scale measurement from different categories of manufacturing organizations. Findings reveal that cash flow statement analysis, ratio analysis, budgetary control, CVP analysis, variance analysis and fund flow analysis have been frequently high-ranking techniques. Secondly, the authors have recognized five factors to calculate the variability in decision-making with the help of rotated component matrix which shows that 75.125...
Words: 6527 - Pages: 27
...Conceptual Foundations of the Balanced Scorecard Robert S. Kaplan Working Paper 10-074 Copyright © 2010 by Robert S. Kaplan Working papers are in draft form. This working paper is distributed for purposes of comment and discussion only. It may not be reproduced without permission of the copyright holder. Copies of working papers are available from the author. Conceptual Foundations of the Balanced Scorecard1 Robert S. Kaplan Harvard Business School, Harvard University 1 Paper originally prepared for C. Chapman, A. Hopwood, and M. Shields (eds.), Handbook of Management Accounting Research: Volume 3 (Elsevier, 2009). 1 Conceptual Foundations of the Balanced Scorecard Abstract David Norton and I introduced the Balanced Scorecard in a 1992 Harvard Business Review article (Kaplan & Norton, 1992). The article was based on a multi-company research project to study performance measurement in companies whose intangible assets played a central role in value creation (Nolan Norton Institute, 1991). Norton and I believed that if companies were to improve the management of their intangible assets, they had to integrate the measurement of intangible assets into their management systems. After publication of the 1992 HBR article, several companies quickly adopted the Balanced Scorecard giving us deeper and broader insights into its power and potential. During the next 15 years, as it was adopted by thousands of private, public, and nonprofit enterprises around the...
Words: 12283 - Pages: 50
