...WHAT IS A BALANCED SCORECARD? According to Robert Kaplan and David Norton, the founders of the Balanced Scorecard, "The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation. (4)" In essence, the Balanced Scorecard is a performance management system used in multitude of organizations throughout the world. It is used to develop an organization’s goals and mission that will enhance the success it has with its customers and employees. HISTORY Although first developed in the early 1990’s by Robert Kaplan and David Norton of the Harvard Business School and coined “Balanced Scorecard” in the early 1990’s, Kaplan and Norton’s method originally stemmed from the pioneering work of General Electric on performance measurement reporting in the 1950’s and the dashboard performance measures from French process engineers in the early 20th century (4) The idea behind this performance measurement tool developed from the fact that traditional performance measurement systems, mostly financial performance indicators, were insufficient in...
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...that will allowt the team to post additionst to the SOpoc diagram. This could be a trasparencey (to be projecte by an overhead) made of thre provided template, flip chard with heading (S-I-P-O-C) wirettn on each, or headings written on post-it notes posted to the wall. 2.Being with te process. Map it in four to five high level steps. 3. Identify the outpust of this process 4. Identify the customers that will reciev the outputs of this process. 5. Idenifty the inputs required for the process to function properly. 6. Identify the suppliers of the inputs that are required by the process. 7. Optional: Identify the prelimnary requirement of the customers. This will be verified during a later stop of the Six Sigma Measurment phase. 8. Discuss with project sponsor, Chapion and other involved stakeholders for verification (Simon, 2010). How to Construct Strategy Maps The Strategy Map, first introduced by Kaplan and Norton (1996) in their book, The Balanced Scorecard: Translating Strategy into Action is essentially just a graphical depiction of an organizations strategy displaying how various initiatives will lead to customer and financial results. Constructing a strategy map can be very beneficial for leadership as it allows them to accomplish the following: • Set vividly clear targets in two areas: financial results and the customer results that...
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...Human Resources Key Performance Indicators Gabčanová Iveta Abstract The article brings out a proposed strategy map and respective key performance indicators (KPIs) in human resources (HR). The article provides an overview of how HR activities are supported in order to reach the partial goals of HR as defined in the strategic map. Overall the aim of the paper is to show the possibilities of using the modern Balanced Scorecard method in human capital. Key words: key performance indicators, entrepreneurial sector, HR scorecard, performance, Balanced Scorecard 1. INTRODUCTION Many companies have implemented tools for measuring their performance in order to stay in business and come in contact with tough competition. Organizations must face not only to more demanding conditions but in the current period to the world financial crisis as well. Due to these reasons, the organizations are forced to measure performance of the organization and contribute to the stability of the organization in today´s competitive environment. Organizations try to measure performance according to the financial drivers but in the recent period top leaders attempted to find new performance indicators which would take the “wind from sail” to their rivals in the market. One of these competitive advantages is human capital. As the Tootell et al. (2009) stated “since 1980s there has been an increasing emphasis on the importance of HR measurement.” Yeung and Berman (1997) declared that “HR measures should be impact...
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...Contents I. APP Pharmaceuticals 3 II. Background/Overview of APP Pharmaceuticals 3 III. Introduction to the Problem 4 IV. Literature Review -Philosophy, Culture and Strategy 7 V. Recommendation/Analysis -Philosophy, Culture and Strategy 9 VI. Literature Review/Analysis – Adoption and Driving Strategy Down into the Organization. 10 VII. Recommendation –Balanced Score Card 11 VIII. Recommendation/Analysis – Total Quality Management 15 IX. Reflection 24 X. Bibliography 26 I. APP Pharmaceuticals APP Pharmaceuticals (APP) strives to lade in the United States and Canada to be a leader for injectable pharmaceuticals. The company, philosophy is to provide excellent products and services by hiring dedicated and committed employees to meet our customers’ needs. Our primary goal is to improve the health and care of patients who use our pharmaceutical products. II. Background/Overview of APP Pharmaceuticals APP was established in 1996 and has quickly become one of the industry leaders in providing one stop shopping for very commonly used products to very special products to meet the needs of a wide range of patients. There market produces 142 products in over 400 doses and formulations. A few of the clinical areas they cover are: Cardiac Care, Dialysis, Emergency, Intensive Care, OB/GYN, Operating Rooms, Oncology, Orthopedics, Pediatrics, Psychiatry and Radiology. (APP Pharmaceuticals, unkown) APP is the number three generic injectable supplier in the United States...
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...Business and Professional Speaking Midterm Study Guide The midterm will cover notes from class, book chapters, and assigned external readings. Those include: Chapters One, Two, Three, Eight, Nine, Reading #1: Corporate Social Responsibility, Reading #2: Businesses Speak Out, Reading #3: Role-play for Management Theory, and Reading #3: Strategy Maps. Below is a narrowing down of what you will be expected to know about what we’ve covered so far, but do not let this be the sole determining factor of what you study. Be aware that these sub-topics/areas are directions for you to help lead your research process. Best of luck to everyone! Reading #1: CSR - what is corporate social responsibility? CSR as situations where the firm goes beyond compliance and engages in "actions that appear to further some social good, beyond the interests of the firm and that which is required by law." - examples of CSR For example, a firm might provide day care to increase employee morale and decrease absenteeism. The provision of this day care may provide social benefits by lowering juvenile crime and increasing school retention. Reading #2: Making Academia Applicable - what’s the disconnect between academic and businesses? Lack of communication - what are modern problems businesses are facing? New technology the threat of new competition reducing firm market share substitutes internal turmoil an overall decline in an industry due to new competition rapid increase in the costs...
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...Human Resources Key Performance Indicators Gabčanová Iveta Abstract The article brings out a proposed strategy map and respective key performance indicators (KPIs) in human resources (HR). The article provides an overview of how HR activities are supported in order to reach the partial goals of HR as defined in the strategic map. Overall the aim of the paper is to show the possibilities of using the modern Balanced Scorecard method in human capital. Key words: key performance indicators, entrepreneurial sector, HR scorecard, performance, Balanced Scorecard 1. INTRODUCTION Many companies have implemented tools for measuring their performance in order to stay in business and come in contact with tough competition. Organizations must face not only to more demanding conditions but in the current period to the world financial crisis as well. Due to these reasons, the organizations are forced to measure performance of the organization and contribute to the stability of the organization in today´s competitive environment. Organizations try to measure performance according to the financial drivers but in the recent period top leaders attempted to find new performance indicators which would take the “wind from sail” to their rivals in the market. One of these competitive advantages is human capital. As the Tootell et al. (2009) stated “since 1980s there has been an increasing emphasis on the importance of HR measurement.” Yeung and Berman (1997) declared that “HR...
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...Business Performance Measurement At the Crossroads of Strategy, Decision-Making, Learning and Information Visualization February 2003 Vince Kellen CIO & Faculty,School of CTI DePaul University Chicago, IL U.S.A. http://www.depaul.edu Abstract Business Performance Measurement (BPM) systems have grown in use and popularity over the past twenty years. Firms adopt BPM systems for a variety of reasons, but chiefly to improve control over the firm in ways that traditional accounting systems have not allowed. Several approaches, or frameworks, for building and managing BPM systems have evolved with the balanced scorecard as the dominant framework in use today. Despite the growing use of BPM systems in organizations of all kinds, significant problems cause firms to experience difficulty in implementing BPM systems. The problems range across a variety of topics: excessive diversity in the field of study, data quality and information system integration problems, lack of linkage to strategy, fundamental differences in how a strategy is formulated and executed in the firm, ill-defined metrics identification processes, high levels of change in BPM systems, analytical skills challenges, knowledge as a social and non-deterministic phenomenon, judgment and decision biases (from prospect theory literature) and organizational defenses that can undermine successful BPM systems use. To help address these problems, a set of critical...
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...(pains), enablers, and values. Step One also includes preparing a change management plan for the organization, and conducting a focused communications workshop to identify key messages, media outlets, timing, and messengers.Step Two: Strategy In Step Two, elements of the organization’s strategy, including Strategic Results, Strategic Themes, and Perspectives, are developed by workshop participants to focus attention on customer needs and the organization’s value proposition.Step Three: Objectives In Step Three, the strategic elements developed in Steps One and Two are decomposed into Strategic Objectives, which are the basic building blocks of strategy and define the organization's strategic intent. Objectives are first initiated and categorized on the Strategic Theme level, categorized by Perspective, linked in cause-effect linkages (Strategy Maps) for each Strategic Theme, and then later merged together to produce one set of Strategic Objectives for the entire organization. | | | Step Four: Strategy Map In Step Four, the cause and effect linkages between the enterprise-wide Strategic Objectives are formalized in an enterprise-wide Strategy Map. The previously constructed theme Strategy Maps are merged into an overall enterprise-wide Strategy Map that shows how the organization creates value for its customers and stakeholders.Step Five: Performance Measures In Step Five, Performance Measures are developed for each of the enterprise-wide Strategic Objectives. Leading and...
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...management system which can be widely applied to organizations and companies regardless of size or type of business. The technique, extensively used in business and industry, government, and non-profit organizations worldwide, provides a method of aligning business activities to the vision & strategy of the organization, integrating internal & external communications, & keeping a watch on organization performance against strategic goals. It was developed by Robert Kaplan and David Norton of Harvard University in 1990. The line of the balanced scorecard runs deep, and include the revolutionary and path breaking work of General Electric on performance measurement coverage in the late 1950’s and the work of French engineers in the early part of the 20th century in France. Due to the fact that balanced scorecard term is a generic, it is interpreted differently by different people, and in practice, there are wide variations in both understanding and implementation. To some, the balanced scorecard is just a simple control panel indicating performance measures, while to others it is a inclusive planning and management system encompassing the whole organization and planned to focus efforts on business strategy and more significantly on performance and results. The balanced scorecard has steadily developed from its early use as a simple performance measurement framework for non-financial performance measures to a full strategic planning and management system. The “new” balanced scorecard transforms...
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...✓ Materials Needed Performance Measurement & Control Systems for Implementing Strategy: Text and Cases, by Simons, Robert. Prentice Hall, ISBN #0-13-234006-2 Cases in Management Accounting & Control Systems 4th Edition, by Allen, Brownlee, Haskins and Lynch, Pearson-Prentice Hall, ISBN #0-13-570425-1 Freakonomics: A Rouge Economist Explores the Hidden Side of Everything, by Steven D. Levitt and Stephen J. Dubner, Harper Collins, ISBN#0-06-073132-X ✓ University Communication with Students All email communication from the University is sent to the student’s wsu.edu address. Please be sure that you have set up the link to forward your personal email address (aol, hotmail, etc.) or you will miss announcements and information that is very important to you. This is the email I use to contact you regarding class matters. If you change your email address, be sure to update again. ✓ Catalog Course Description with Prerequisitites 3credits: Managerial evaluation of budgeting, cost accounting, and financial analysis techniques; their utilization in control of operations. (pre-requisite acctg 550 or equivalent). Please note that pre-requisites are strictly enforced and that students will be disenrolled if they do not have course pre-requisites). ✓ Instructor Course Objectives Knowledge and Skill Expectations: Students should have the knowledge and skill level to record economic events, read and analyze financial information through the topic areas covered...
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...control of their companies by answering the basic questions related to these perspectives. For example: How do customers see us(customer perspective); What must we excel at(internal perspective); Can we continue to improve and create value(innoviation and learning perspective); How do we look to shareholders(financial perspective). The paper also demonstrated some examples of how to build the balanced scorecard for the company and developed the performance measurement system from balanced scorecard. This paper could be considered as the fundamental of the balanced scorecard method. In the following paper: Using the Balanced Scorecard as a Strategic Management System, Kaplan and Norton developed the method by adding the vital factor: vison and strategy to the original four perspectives. Further more, the logical links between four persepectives were identified in...
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...Executive Summary According to Bento, “the Balanced Scorecard (BSC) has been proposed as an integrated framework for the implementation of financial and nonfinancial performance measures that helps organizations align their initiatives with the organization’s strategy” (2013). The Balanced Scorecard offers management a system to use in plotting strategic objectives through four perspectives. The financial perspective is determined by the outcome of management’s implementation of the internal processes perspective, customer perspective, and learning and growth perspective. Aon Corporation is the “leading provider of risk management, insurance and reinsurance brokerage” (Aon, 2014). Using the Balanced Scorecard my operating segment, Benefit Marketing Solutions, can examine an implement each of the four perspectives by obtaining information on how we can achieve Aon standards in the operation of our business segment. Implementing the Balanced Scorecard, I will assess how our financials can improve by achieving the objectives of maximizing company profits, increasing our gross profit margin per client, and decreasing our accounts payable days. The first factor I will investigate is our customer perspective and how increasing customer loyalty, customer exposure, and customer education will improve upon our financials. The second factor I will investigate is the internal perspective and how effective company alliances, effective customer service, and effective payment of...
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...http://parttimembadegree.com/business-school-cases/citibank-performance-evaluation-case-analysis/ Citibank: Performance Evaluation Case Analysis November 21, 2010 James McGaran’s Performance Evaluation. Doing the year-end performance evaluation for James McGaran, the branch manager of the flagship office in the Los Angeles area, was probably one of the most difficult experiences in all my years with Citibank in the capacity of area manager. James has been not just an exemplary employee in our area, but really someone who other branch managers could always look up to. His career with Citibank has been a quick progression through the ranks from the assistant branch manager to the manager position at the most important of all the bank branches in the Los Angeles area – the Financial District office. Until this year his performance exceeded expectations in every single year. His financial results have been truly impressive. However with the introduction of the new performance scorecard which reflected the company’s broadening of the evaluation scope to customer satisfaction score, it became obvious that this was essentially the only area where James’ performance was lacking. At the same time Frits Seegers, President of Citibank California, was convinced that customer satisfaction indicator was important not only for meeting ever-increasing expectations of highly-sophisticated clients, but also for achieving strategic goals of the division, and staying competitive. Since five...
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...Abstract .......................................................................................................................................3 Organizational Structure .............................................................................................................3 Balance Scorecard .......................................................................................................................4 Part 1: The Financial Perspective................................................................................................5 Part 2: The Customer Perspective ..............................................................................................6 Part 3: Internal Business Perspective ..........................................................................................6 Part 4: Growth and Learning…………………………………………………………………...6 Competitor analysis…………………………………………………………………………….7 Domino’s Pizza new product…………………………………….……………………………..8 Figure 1: Organizational Structure……………………………………………………………..4 Figure 2: Domino’s Pizza Balance Scorecard………………………………………………......5 Figure 3: Objectives Satisfied by the project……………………………………………………7 Figure 4: Regression analysis…………………………………………………………………...10 Conclusions .................................................................................................................................12 Bibliography ..................................................................................................
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...makes sense to deploy management control within the division Norwalk? Ensure good argumentation, in which attention is paid to the balance between short and long term and to the balance between the different performance perspectives. 3. Norwalk developed by the Balanced Scorecard is designed primarily as a reporting tool for Chadwick. To what extent does the card as shown in Exhibit 2 for this specific purpose? In light of this purpose the explicit restriction to hard, objective data a good idea? Again, pay attention to the motivation of the answer. Reply belonging to question 1 In order to answer this question, we must first understand the business strategy of Norwalk. We must determine the keys to the business strategy or the “Critical Success Factors.” Critical success factors are dependent on which strategy is implemented. For Norwalk, the following critical success factors should be Included: • Relationships and Current Networks: The salesmen are trained to sell new products alongside the existing product lines, and also listen to the end users who are often coming up with new and interesting ideas about how the products of Norwalk could be used for new applications. This way, Norwalk directly hear what the needs of its customers are, and on this basis its innovates new products directly to fit those needs. Especially since the creation of new products is a long and tiresome process of tests and...
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