...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
...The Balanced Scorecard is a management system that plots a business’ strategic intentions into four perspectives that is comprised of internal processes, financial, customers, and learning and growth. (NetMBA, n.d.). These four perspectives are essential to provide feedback as to how well the plan is being executed. Moreover, the balance scorecard is a system that not only focuses on measures used to identify problems, but more so a system that integrates a business’ strategy with an intentionally set number of key metrics. (NetMBA, n.d.). Some benefits associated with the Balanced Scorecard include the translation of strategy into measureable parameters, communication of the strategy to each individual within the organization, an alignment of personal goals with the business’ strategic objectives, and the response of implementation results to the “strategic planning process” (NetMBA, n.d.). Also, the Balanced Scorecard has evolved into a strategy implementation system that not only measures performance but also defines, communicates, and aligns the strategy during the course of the business. Economic Value Added is a financial performance method that is used to calculate the economic profit made by an organization. It can be calculated as the net operating after taxes profit minus a charge for the opportunity cost of the capital invested. (Value Based Management.net, n.d.). Economic Value Added is also an approximation of the total by which earnings surpass or fall short...
Words: 496 - Pages: 2
...Business Model and Strategic Plan Part III: Balanced Scorecard BUS/475 February 23rd, 2015 Table of Content I . Introduction……………………………………………………………………………3 II. The balanced scorecard………………………………………………………………..3 III. Financial perspective…………………………………………………………………3 a) Market share……………………………………………………………………...4 b) Revenues and costs……………………………………………………………….4 c) Profitability……………………………………………………………………….4 IV. Customer value perspective…………………………………………………………..5 a) Customer retention or turnover…………………………………………………...5 b) Customer satisfaction……………………………………………………………..5 c) Customer value…………………………………………………………………...5 V. Internal operations perspective………………………………………………………..6 a) Measure of process performance…………………………………………………..6 b) Productivity or productivity improvement………………………………………...6 c) Operations metrics…………………………………………………………………6 VI. Research and development perspective………………………………………………6 a) Employee turnover or retention…………………………………………………..6 b) Nature of organizational culture or climate………………………………………6 c) Level of organizational capability………………………………………………..7 VII. Conclusion…………………………………………………………………………..7 Appendix A: Financial perspective………………………………………………………8 Appendix B: Customer value perspective………………………………………………..9 Appendix C: Internal operations perspective……………………………………………10 Appendix D: Research and development perspective…………………………………...11 References………………………………………………………………………………...
Words: 1757 - Pages: 8
...Analysis The Balanced Scorecard (BSC) was an idea that was developed in the early nineties by Kaplan and Norton as an approach towards performance evaluation. The scorecard has four perspectives; the financial perspective, the customer perspective, the internal business processes perspective and the learning, growth and innovation perspective. The financial aspect requires that for an organization to succeed financially there is need to improve on the shareholder value, realize return on capital and also to utilize efficiently the available assets. The Zoogle Company benefitted financially because they registered improved market share value in the stock exchange for three consecutive years after inception of the scorecard. The customer perspective tends to answer the question,’ to realize our vision, how should we present to our customers?’ This would be through ensuring better products and services for customer satisfaction, enabling good customer relationships and making sure the company reputation is jealously protected. Zoogle noted some improved customer interest in their software business through a customer feedback program. Some even suggested what they would prefer to continue getting and what should be changed. This obviously impacted positively on the company’s revenue. The internal business processes perspective tends to identify the processes that can be altered so that both the shareholders and the customers are impressed. This would be through...
Words: 1657 - Pages: 7
...To: Board of Directors of Caribbean Brewers, Inc. From: Advisor, Caribbean Brewers, Inc. Subject: Report on the Performance Measurement System for Cost and Quality Control Date: April 17, 2014 Performance Measurement Background Since Gera International purchased a 75 percent share of the brewery, the performance measurement system has changed immensely. Presently, the production personnel can earn a bonus if production costs do not exceed 43% of sales. In the past, the bonus was based on a combination of average total production costs and quality control, which has since been eliminated. This change in performance measurement has also affected JJ’s benefits, eliminating his annual dividend, and decreasing his ownership in the company from 25% to 8%. Cost Control JJ, the production manager, is extremely displeased with the new performance measurement system for a variety of reasons. Regarding costs, the production personnel’s bonus is based on many factors which are out of their control. The production facilities were expanded in 2008 in order to double production capacity. Since the expansion, the plant began producing Gera beer as well. As a deposit cannot be collected on exported Gera beer bottles, all bottling costs are expensed and charged solely to Caribbean Brewers Inc., resulting in a cost increase of over $6.1 million in 2009. Depreciation is also included in determining total production costs as a percentage of sales for bonus purposes. As a result...
Words: 808 - Pages: 4
...PLAN AND DIVISIONAL PERFORMANCE EVALUATION DATE: 12TH NOVEMBER 2012 INTRODUCTION: The purpose of this report is to critically address the expansion plan of Santa division management focused on the anticipated plant replacement. This action is aimed at improvement of the Santa division manufacturing capacity which is required for meeting demands of a new customer offering an attractive five years contract. In spite of the considered plan of expansion is perceived as a low-risk venture, the report will review the impact of accepting the contract using the given information and basing on financial (Return on capital employed (ROCE), Residual Income (RI)) and non financial performance measurement techniques, specifically the balanced scorecard approach. The following data is available for Santa division: Net profit before tax (PBIT) £ 3 mln per annum Net capital employed £ 10 million Required rate of return 20 % before tax The Following data is available on the anticipated contract: Contract duration 5 years Sales provided £ 2 mln per annum Operating costs on the contract £ 1,35 mln per annum, excluding depreciation The following data is available on the plant required: Plant replacement = annual depreciation per year Required capital outlay £ 2 mln (£ 1,5 mln of new fixed assets + £ 0,5 mln) Plant life 5 years FINANCIAL PERFORMANCE MEASURES (ROCE, RI): ROCE (also referred to as return on investment (ROI) and return on assets (RONA), is the most commonly...
Words: 2393 - Pages: 10
...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...
Words: 8884 - Pages: 36
...Company: Comcast Industry: Cable Television / Telecommunications Comcast - Background Comcast Corporation is the largest cable operator, internet service provider, and 4th largest home telephone service provider in the United States (Hoovers.com, 2013). Comcast is a member of the Telecommunication / Cable Television industries. Comcast has achieved revenues exceeding $55 billion and $62 billion in 2011 and 2012 respectively (CMCSA.com, 2013). As of the last Fortune 500 report, Comcast ranked #49 in the world and is a member of the S&P 500 (Hoovers.Com, 2013). Comcast is broken into two primary segments: Cable and Programming. Comcast Cable operates within the United States. It provides subscribers access to analog and high definition programming. These subscribers are a mix of residential and business customers. Other offerings include digital video recorders, on demand programming, and premium programming such as HBO, Cinemax, Showtime, and Starz (Gustin, 2012), The Programming segment of Comcast consists of several internally owned networks such as the Golf Channel, Style Channel, the Versus network and many others (Wikinvest, 2013). The revenue derived through these programming channels is based, primarily, in residential and business subscription fees. These fees are passed through to Comcast from providers of multichannel video that have agreements to distribute Comcast’s programming lineup, advertising revenue, and global licensing (Wikinvest, 2013)...
Words: 1300 - Pages: 6
...Volkswagen do Brasil: Driving Strategy with the Balanced Scorecard Index: 1. What challenges does Thomas Schmall face upon becoming CEO of Volkswagen do Brasil (VWB)? 2. Describe VWB´s new strategy 3. What are the benefits from having all employees understand the strategy? 4. How does the strategy map and Balanced Scorecard help Schmall and Senn implement the new strategy? 5. What are the strengths and weaknesses of the Scorecard and its implementation? 6. What other actions did VWB take to support strategy implementation? 7. How can Schmall and his team use the scorecard to deal with the challenges faced by company in January 2009? 1. What challenges does Thomas Schmall face upon becoming CEO of Volkswagen do Brasil (VWB)? Before Thomas Schmall was appointed CEO in 2007, he already gained knowledge about Brazil and the subsidiary while reorganizing production in 1999 to 2003 until he was sent back to Europe. This crucial fact helped him quickly adjust to the different company culture, strategy and overall mindset existing in Brazil. Before analyzing the challenges he faced as CEO in 2007, the question arises why he didn´t respond to the known problems during his four years working in Curitiba? VWB would have saved enormous resources, if they had rigorously responded to the problems earlier. Thus VWB suffered eight consecutive years from losses, lost market share tremendously, made the subsidiary bureaucratic and created an atmosphere of apprehension...
Words: 1610 - Pages: 7
...The Calleeta Corporation Case Study As Calleeta Corporation’s CEO, Jan is facing multiple business issues while trying to expand the business globally. While trying to be the leader in RFID products, there are business issues that Calleeta must address. Three key business issues include lack of support from board members/shareholders, increasing employee costs, and protests against Calleeta’s offshore facilities due to the growing concern of working conditions. First, board members and investors are not supporting Jan or her proposal due to a poor return on investment. Board members are concerned about the rapid increase of employee cost the company is incurring. Calletta is incurring a 12% cost increase annually compared to an industry average of just 4% (Kavanagh & Thite, 2009). There will continue to be a lack of support if Jan is unable to increase the company’s revenue and return on investment. Another key business issue is board members demanding that Jan seek ways to decrease employee cost before approving any future plans. Employee cost consists of things such as recruiting cost, income, training, and benefits. As a result, Jan is forced to choose between HR Vice-President John Nosmas practices or the board, both who affect her maneuvering power for future plans. John Nosmas defends his practice of paying higher wages along with providing expensive benefit programs because he believes in hiring the best employees. He feels that these practices help with recruitment...
Words: 1470 - Pages: 6
...The ESA’s Balanced Scorecard Damian Miles June 15, 2015 AMBA 630 – WEEK 10 EXECUTIVE SUMMARY The Entertainment Software Association (ESA) is a U.S trade association dedicated to serving the business and public affairs needs of companies that publish computer and video games for video game consoles, personal computers, and the internet. Each year the ESA looks to find ways to highlight, and bring positive awareness to the video game industry, while also deterring negative press along the way. Our industry is fun, innovative, creative, and inspiring; and also has an enormous amount of growth potential. The ESA is directly serving the publishers of the gaming industry, by offering a range of services. Services are as follows, but not limited to; a global content protection program, business and consumer research, government relations and intellectual property protection efforts. The ESA also provided the industry with the biggest trade show, which allows our member companies to use a huge platform to bring their newest innovation, and technology to the public. The ESA measures company success from services provided video game industry is usually evident through different factors. The ultimate goal is to have every U.S. video games publishing company become a member of our company. That will happen if we continue to support, work, and build the industry through our services to our member companies. Financial...
Words: 3516 - Pages: 15
...ANSWERS 1. What challenges does Thomas Schmall face upon becoming CEO of Volkswagen do Brasil (VWB)? Ans: Thomas schmall faced many issues in the VWB , mainly the pressure on profitability, sales, employees issues and customer satisfaction. As we see from the case, Volkswagen do Brasil faced several problems, for eg:- • Financial losing and market share declining. • Restructuring the organization chart to accommodate new leads and tasks for a project. • Diminishing market share of VW. • challenges were the entry of many multinational car manufacturers into the Brazilian market. The market share of VW was heavily affected among other competitors. However, Shmall was still optimistic of seeing more growth in the country market. Regarding the cost, the company tries to cut some cost by reeducating managers in several aspects, such as innovating new products, improving processes, and spending budgets wisely. 2. Describe VWB’s Strategy? Ans: VWB´s new strategy was multifaceted and consisted basically of four major objectives that guaranteed that VWB would regain position as market leader Brazil and strived for 1 producer of the South American automotive market. • To realize their strategy they needed to “build a high performance team that would drive VWB to become South American industry´s leader in quality, innovation, sales, and profitability on a sustainable basis”. • Further “Re-Branding VWB into one with enthusiastic and highly-motivated...
Words: 924 - Pages: 4
...073 D Linking the Balanced Scorecard to Strategy O N Robert S. Kaplan David P. Norton O S T everal years ago, we introduced the concept of a “Balanced Scorecard” for motivating and measuring business unit performance.1 The Scorecard, with four perspectives—financial, customer, internal business processes, and learning and growth—provided a balanced picture of current operating performance as well as the drivers of future performance (see Exhibit 1). Can Business Operate with a Balanced Scorecard? CO Some argue that managers cannot operate with multiple measurements of business-unit performance. While they recognize that aggregate financial measures (such as operating income, return on investment, and economic value added) are not perfect by themselves, they claim that financial measures at least are well understood and provide clear, unambiguous, and objective goals on which all organizational participants can focus. Such people feel that multiple measures—some financial and some non-financial—are confusing and lead to ambiguous, often conflicting, signals about what the organization values. PY We disagree. Imagine entering the cockpit of a jet airplane and observing that there is only a single instrument. How would you feel about flying on that plane after the following discussion with the pilot: Reprinted by permission of Harvard Business School Press. Adapted from The Balanced Scorecard by Robert S. Kaplan and David P...
Words: 10522 - Pages: 43
...BUSINESS PROCESS CHANGE PLAN GB560 Designing, Improving and Implementing Processes Session # 1205D Bobby Young-Mentgen Kaplan University July 31, 2012 UNIT 1 ASSIGNMENT (With Diagram Response Should Run 2-3 Pages in Length) Q#1 Provide the name of the organization (this must be a real organization and you may use the organization where you currently work; describe the organization’s size and summarize the primary mission of the organization. Don’t simply copy from the organization’s mission statement. CenterPointe is a non-profit health care industry providing treatment, rehabilitation, recovery support and housing for people overcoming addiction or co-occurring mental illness and addiction. The organization, consisting of 5 facilities in Lincoln, Nebraska, serves low-income and indigent men, women and teens based on their beliefs that everyone deserves access to quality treatment and because the community is only healthy as the most vulnerable among us. Over the years CenterPointe has continued to add programs and services to meet the many needs of their consumers. These programs and services include: Residential Treatment, Outpatient Treatment, Youth Services, Community Support & Housing, Adult Day Rehabilitation, PIER, Veteran Services, and Open Studio/Writers’ Workshop. CenterPointe employees 102 individuals throughout their facilities, along with 9 contractual professionals and numerous community volunteers (CenterPointe, Inc., 2012. About us). Q#2 From...
Words: 2555 - Pages: 11
...presentation reflecting on a work experience or other placement you were involved in Effective Learning Service 1 Bradford University School of Management Report Writing What’s the difference between a report and an essay? There are two main differences: aim and presentation. Aim Essays give you more opportunity to expand on possibilities, ideas or concepts. Reports deal with describing and/or analysing actual past events. Reports can be written that make predictions or recommendations for the future, but these are usually the result of an analysis of past events or of current or past social, cultural or economic phenomena. The English statesman, Sir Thomas More, wrote an essay titled Utopia, which visualised an ideal state or ‘perfect world’. He couldn’t have written a report on the same topic! Presentation Reports are also usually broken up into sections, each section with a relevant sub-heading. Bullet points, illustrations, diagrams, charts, tables can also be...
Words: 7456 - Pages: 30
