...in 2008 (now also translated in Romanian, soon to be published). Over the years many consulting or educational organizations have tried to add to the Balanced Scorecard initial concepts, in some cases attempting to build “a better mouse trap”, but few succeeded to bring any significant theoretical or practical value to the BSC framework and implementation methodology, developed continuously by Drs. Kaplan and Norton and by their team at Palladium and based on thousands of implementation projects in most industries, geographies worldwide and organization sizes, in both public and private sectors. Four Perspectives of Balance Score Card The balanced scorecard suggests that we view the organisation from 4 perspectives, and to develop metrics, collect data and analyse it relative to each of these perspectives: • The Learning and Growth Perspective • The Business Process Perspective • The Customer...
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...Term Paper On Management Control System 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...
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...that is used in management to completely monitor the performance and access whether smaller goals are consistent with larger and long-term goals, based on the vision and strategies being used” (Kaplan & Norton, 2005). This type of tool can be beneficial for the operation of All Eyes on Me as a startup business. Having a balanced scorecard will allow the following to be identified: the mission statement, the vision statement, the objectives, the values of the company, and mainly the SWOT analysis. The balanced scorecard is often times considered an excellent perspective as it relates to learning the financial perspective, internal perspectives and the consumer. In this paper, I will attempt to discuss the objectives, target audience and performance measures. Also, in this paper, I will discuss the mission, SWOT analysis and vision of All Eyes on Me. Financial Perspectives “While defining the financial perspective, the main concern is the company image as perceived by their stakeholders at a time when they are already successful” (Kaplan & Norton, 2005). All Eyes on Me will have to develop a strategy (marketing) that will show an increase that is compared against its’ competitors. The competition research or market survey is an essential strategy that is used to develop a successful marketing plan. All Eyes on Me should also take an additional step to ensure that all of it’s’ competitors are included in the survey; this will give a better insight on how they can compete...
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...MEMORANDUM DATE: January 30, 2011 TO: Shimrath Paul, CEO of OTAGO MUSEUM FROM: Chris Farry, CFO of OTAGO MUSEUM ------------------------------------------------- RE: Analysis of Comprehensive Balance Scorecard for Otago Museum It is a great pleasure to have the opportunity to work with you. According to your request, I have completed the design of the comprehensive Balance Scorecard (BSC) for our museum. The newly designed comprehensive Balance Scorecard (BSC) is divided into four sectors: Financial, Learning and Growth, Internal Process and Community Perspective. Financial is concerned with supporting further programs and operations under learning and growth. A better internal process will be developed in a well developed learning and growth environment. We are working toward our prime mission “To be an inspirational museum of which the people of Otago and New Zealand are proud.” Community innovation and engagement in the community perspective are our final goals with this Balance Scorecard (BSC) (See Appendix 3 and 4). Financial Objective Understanding that the financial situation is the foundation to support the ongoing program and contracture operation, and our first priority is to strengthen our financial circumstances. According to the 2009 statement of financial performance report, the revenue generated from museum tickets and the café and gift shop operations have exceeded our expectations. The café and gift shop operations can be our focus next...
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...a strategic responsibility accounting consequences system that translates an organization‘s mission and strategy into operational objectives and performance measures for four different perspectives: Financial Perspective: It provides a view of performance from the perspective of the shareholders. Customer Perspective: In achieving Customer Value and understand customer value. Internal Perspective: describes the internal processes needed to provide value for customers and owners Learning and growth (infrastructure) perspective defines the capabilities that an organization needs to create long term growth and improvement. 2) Lad indicators monitor progress towards objectives, in nature and measure whether the business remain in control, follow and event. Lead indicators measures future performance and monitor whether the organization is on target with its strategy, future event. PROBLEM 14.34 (30 minutes) Balanced scorecard: service firm—Tour`…page 720 Objectives 1. Financial Increase profit Improve cash flow 2. Customer Increase market share Improve customer satisfaction -expand customer base 3. Internal Business Increase office cost effectiveness Increase innovative tours -improve quality of product -improve production processes -improve environment performance 4. Learning and Growth Increase environmental knowledge of employees -improve employee satisfaction Performance Measures Lag Indicators Lead Indicators Profit per tour Average value of each booking Average...
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...WEEK 10 Starbucks Balanced Scorecard University of Maryland University College Professor AMBA 630 12/14/2015 Table of Contents Executive Summary……………………………………………………………………………3 Balanced Scorecard for Starbucks Coffee Company-Figure…………………………………..4 Vision Statement…………………………………………………………………………….…5 Mission Statement…………………………………………………………………………...…5 Values................................................................................................................................…….5 Balanced Scorecard for Starbucks Coffee Company………………………………………….6 Financial Perspective ………………………………………………………………………….6 Customer Perspective………………………………………………………………………….8 Internal Perspective……………………………………………………………………………9 Employee Learning and Growth……………………………………………………………...11 Conclusion……………………………………………………………………………….……13 References…………………………………………………………………………………….14 Appendix……………………………………………………………………………………...16 Executive Summary The balanced scorecard is a technique that helps organizations to implement strategies to reach their mission and vision. In this paper, I will discuss a balanced scorecard that managers of Starbucks Coffee Company should use to measure their business. The first store of Starbucks opened in Seattle, Washington. Jerry Baldwin, Zev Siegl and Gordon Bowker got the idea from Alfred Peet. At first, only coffee beans and coffee making equipment were being sold, but after 10 years Howard Schultz was hired as Director of Retail Operations and he wanted...
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...Organisational Capability Analysis Dr. M. Thenmozhi Professor Department of Management Studies Indian Institute of Technology Madras Chennai 600 036 E-mail: mtm@iitm.ac.in ORGANIZATIONAL APPRAISAL Internal Environment - strength & weakness in different functional areas Organization capability - Capacity & ability to use distinctive competencies to excel in a particular field - Abilty to use its µS¶ & µW¶ to exploit µO¶ & face µT¶ in its external environment Organization resources - Physical & human cost, availability - strength / weakness ORGANIZATIONAL APPRAISAL Organization behaviour Identity & character of an organization leadership, Mgt. Philosophy, values, culture, Qly of work environment, Organization climate, organization politics etc. Resource Behaviour Distinctive competence - Any advantage a company has over its competitor - it can do something which they cannot or can do better - opportunity for an organization to capitalize - low cost, Superior Quality, R&D skills etc. METHODS & TECHNIQUES USED FOR ORGANIZATIONAL APPRAISAL Comprehensive, long term Financial Analysis - Ratio Analysis, EVA, ABC Key factor rating - Rating of different factors through different questions Value chain analysis VRIO framework METHODS & TECHNIQUES USED FOR ORGANIZATIONAL APPRAISAL « BCG, GE Matrix , PIMS, McKinsey 7S Balanced Scorecard Competitive Advantage Profile Strategic Advantage profile Internal Factor Analysis Summary SWOT ANALYSIS Identify & classify...
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...performance and identify key performance measures that link measurements to strategy led to the emergence of the balanced scorecard. Only the critical performance measures are incorporated in the scorecard. The scorecard can provide top management with a fast but comprehensive view of the organizational unit. THE CUSTOMER PERSPECTIVE Philips set operating efficiency as its strategic theme. To get more customers to buy the Philip’s products by attract customers with new products, make a promotion every festival time and give free gift for who are buying the Philip’s products. The customer and market segments should be identify by the customer perspective in which the business unit will compete. The revenue element for the financial perspective objectives is make by the customer perspective. So, the achievement of customer objectives should ensure that target revenues will be generated. Five typical core or generic objectives are increasing market share, increasing customer retention, increasing customer acquisition, increasing customer satisfaction and increasing customer profitability. These objectives measures the percentage market share, percentage growth of business...
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...the costs are comparing to the outcome of the project. Learning and growth allows the company to get detailed information from the employees that work for them. Finally there is customer perspective. This is customer insight about the project that was being evauled. Each of these perspectives comes together in one big report for the company but all of the perspectives are different. Financial Audit Audit is a way for the company to have insight to financial matters to help determine if the project is meeting goals. The audit will review budgets, status of the project, and future of project, sales receipts, maintence, and even pay roll information. The company then has an overview of how costly or beneficial the project is. An audit for a project uses no standard system and has no records; therefore the data needs to be started when engaging the audit. Learning and Growth The learning and growth perspective allows a company to understand the employees employed. This provides information based on employee satisfaction and even retention. Learning and growth even explores the different skills needed for each job. This allows the company to have full insight on what sort of skills are going to be needed if the project is going to be redone at a later time. This could ensure the outcome of the project to be better just by following and tweaking the project guidelines. Customer The customer perspective provides the company with insight from new and repeat customers...
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....CHAPTER 10 Coolbrook Company has the following information available for the past year: | | River Division | Stream Division | Sales revenue | $ | 1,200,000 | $ | 1,800,000 | Cost of goods sold and operating expenses | | 900,000 | | 1,300,000 | | | | | | Net operating income | $ | 300,000 | $ | 500,000 | | | | | | Average invested assets | $ | 1,200,000 | $ | 1,800,000 | | The company’s hurdle rate is 6 percent. | | Required: | 1. | Calculate return on investment (ROI) and residual income for each division for last year. (Do not round your intermediate calculations. Round "ROI" answers to 1 decimal place.) | River Division | Stream Division | ROI | +/-1%25.0 | % | +/-1%27.8 | % | Residual Income | $228,000 | | $392,000 | | | | | | | 2. | Recalculate ROI and residual income for each division for each independent situation that follows: | a. | Operating income increases by 10 percent. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.) | | | | | River Division | Stream Division | ROI | +/-1%27.50 | % | +/-1%30.56 | % | Residual Income | $258,000 | | $442,000 | | | b. | Operating income decreases by 10 percent. (Do not round your intermediate calculations. Round "ROI" answers to 1 decimal place.) | | River Division | Stream Division | ROI | +/-1%22.5 | % | +/-1%25...
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...managing all aspects of a company’s performance * The scorecard balances traditional financial measures of success, such as profits and return on capital, with nonfinancial measures of the drivers of future financial performance * The Balanced Scorecard measures organizational performance across different perspectives Lenses * Four different but linked perspectives are derived from the organization’s strategy: * Financial * Customer * Process * Learning and Growth * The BSC enables companies to: * Track financial results * Monitor how they are building the capabilities for future growth and profitability * With customers * With their internal processes * With their employees and systems * A BSC tells the story of the business unit’s strategy * A BSC identifies and makes explicit the hypotheses about the cause-and-effect relationships between: * Outcome measures in the Financial and Customer perspectives * Performance drivers of those outcomes in the Internal and Learning and Growth perspectives * Typical objectives found in each of the four BSC perspectives include: * Increase revenues through expanded sales...
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...consisting of four perspectives – financial, customer, internal process, and learning and growth – represents the primary strategic dimensions of any organization. The strategy map provides a visual framework that integrates the organization's strategic objectives across these four perspectives. The strategy map is the most powerful way of communicating the strategy; it shows how intangible assets are transformed into tangible ones, often financial outcomes (Norton & Russell, 2005). The top half (the financial and customer perspectives) are essentially outcomes — or rather what the organization aims to achieve financially and for the customer. The bottom half of the map represents the inputs — or rather those processes/activities that must be delivered exceptionally well if the outcomes are to be realized and, consequently, the strategy implemented. Westpac’s vision is to be one of the world’s great companies, helping their customers, communities and people to prosper and grow. The mission is to earn all of the customers’ business. The focus is on: delighting the customers; having the right people in the right roles; and the reputation. Westpac do their business amongst the customer base. They want to achieve the highest levels of customer satisfaction and loyalty. They want to deepen their relationships with their existing customers, and continue to acquire new customers. Finally, they would get more profits and enhance shareholder value. From a financial perspective, the top objective...
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...Contents 1. Introduction 2. BSC in Kazakhstan a. Sat&Company JSC b. Eurasian Bank c. Alfa-bank SB JSC d. TetraPack 3. Conclusion 4. References The organizations mentioned by the creators of Balanced Scorecard are from the future - only because they have a system that allows to create actual numerical results from the strategic initiatives and to turn a strategy into action Philip H. Knight, CEO and founder of Nike Introduction Balanced Scorecard (BSC) is one of the current world's top-ten effective strategic performance management tools. BSC is a system of measuring the effectiveness of the entire company, based on a vision and strategy that reflects the most important aspects of the business. It supports strategic planning, implementation, and further adjustments to the strategy by combining the efforts of all departments. It was first introduced in 1990s and became a very popular worldwide. Despite this popularity, little is known about which organizations use Balanced Scorecard, what they use it for, and how useful it is in practice. BSC implementation in Kazakhstan is under a big concern of local top managers. In this report we are trying to answer the practical questions of BSC’s usage by Kazakhstani companies, its limitations as well as opportunities for its successful maintenance in Kazakhstan. Benefits and limitations of Balanced Scorecard Throughout the report we will pay attention to the BSC’s benefits and the opportunities...
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...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 my categorization of the Learning/Growth Perspective, I listed Employee Training Hours, Employee Satisfaction, and...
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...internal processes and learning and growth. Balanced scorecard thinks far beyond the traditional financial system, so that hotel appears the appropriate setting for implementation of the balanced scorecard. The first step in developing a balanced involves is determining a mission or vision. A vision outlines the purpose of an organization. After vision, we need to determine what strategy will be employed to achieve the mission. After strategy we need to translate this strategy into specific strategic objectives. If the strategic objective of staff is to be regarded among most friendly, appropriate performance measures could include: hours s pent to train staff on politeness and friendly customer engagement, customer survey ratings with respect to perceived friendliness of staff. As strategic objectives and performance measures would need to be developed for each of four balanced scorecard’s key perspectives. a] Financial perspective in hotel: The financial perspective contains strategic objectives that are developed from shareholder’s perspective. Kaplan and Norton suggest these objectives can be developed by answering the question: To succeed financially, how should we appear to our shareholders! Once these objectives have been developed, a set of financial measures generated. The financial measures includes departmental cost, cost of providing a room night, hotel profit, profit of market segment, revenue per available room, share price, revenue growth compared to budget, sales...
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