Task: Evaluate the current literature associated with Kaplan and Norton's Balanced Scorecard framework and one other strategic management system. Then compare and contrast the two systems based on the value to management. Choose one strategic management system. Discuss in detail with rationale its implications on leadership style, company strategy, and corporate social responsibility.
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Strategic management refers to an all inclusive compilation of different ongoing activities and procedures generally used by almost all companies to thoroughly organize and line up resources and actions with the company mission, vision and strategy. Strategic management activities assist organizations in transforming their static plan into a unique system that offers strategic performance feedback considering decision making and modifies the plan to develop and cultivate as necessities and other conditions change (Hill and Jones, 2012). In concern to managing all these aspects as well as strategic planning, the companies make use of strategic management systems such as Balance Scorecard Framework and Porter's value Chain (Witcher and Chau, 2010).
Kaplan and Norton's Balance Scorecard Framework:
In the words of Chavan (2009), the balance scorecard is a strategic planning and management system extensively used in occupations, administration, and non-profit organizations all over the world, with an aim to align all business activities with their vision and strategy. In addition to this it is also used for improving internal and external communications, and check organization performance adjacent to strategic goals. The balance scorecard was developed by Drs. Robert Kaplan and David Norton, as a performance measurement framework that totaled strategic non-financial performance measures with traditional financial metrics to provide a more balanced view of organizational performance to executives and managers (Chavan, 2009).
Dechow (2012) on the other hand describes balance scorecard as a strategic performance management framework designed to assist organizations in monitoring their performance and execute their strategies. In a study regarding the management tool usage, it was identified that the balance scorecard is the sixth most extensively used management tool throughout the world along with highest overall satisfaction ratings (Dechow, 2012). The balanced scorecard helps in breaking performance monitoring into four interlinked perspectives that are financial, customer, internal processes and learning & growth.
In accordance to Jeffs (2008) the balanced scorecard has developed from its premature use as an uncomplicated performance measurement framework to a complete strategic planning and management system. The new balanced scorecard as used now is able to transforms a company's strategic plan from a striking, but inactive document into the "marching orders" on an every day basis. Use of the balance scorecard framework not only serves in performance measurements, but also assists planners in distinguishing what needs to be done and measured (Jeffs, 2008). It enables managers and executives to accurately carry out their strategies. Each of its perspective assists in providing pertinent feedback regarding the execution of strategic plan and need of adjustments if any (Olve, 2006).
Kaplan and Norton (2007) concentrate that for translating vision and strategy of an organization it should make use of the balanced scorecard. It assists managers in viewing the organization from following four perspectives, and to build up metrics, gather data and examine it:
The Financial Perspective: The Financial Perspective includes the financial objectives of a company that in turn appropriates managers to track their financial success and ...
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