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    IT Balanced Scorecard: Use & Benefits

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    Having trouble trying to Identify an organizational situation for the purpose of analysis (the situation must be sufficiently complex to generate enough material to satisfy the requirements as outlined below)

    Consider how the concepts and theoretical frameworks help to analyze what is needed.

    In the end I will need to write up a case study that relates evidence to theory and provide an appropriate analysis and explanation of the situation described

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    Pearlson and Saunders (2013) discuss the theory of utilizing an IT balanced scorecard to better link the department's performance to that of the corporate goals. By utilizing a tool that measures the department's performance, the individual department and in particular senior managers are better able to demonstrate that work being done in the department is in correlation with the corporate strategy. In turn, a corporate balanced scorecard helps the company give clear direction to individual departments.

    Phillips Electronics is a worldwide company with "more than 250,000 employees in 150 countries around the world (Gumbus & Lyons, 2009). The impetus of utilizing a balanced scorecard was to streamline the complicated process of running a company with diverse product lines and divisions. IT was key in this process, not only as a department that must use the balanced scorecard, but also as an integral facilitator in helping other departments use the scorecard. Initially, the company needed to determine the organization's value drivers, and the impact of their operation on their customers and workforce, and financial performance. In helping to streamline the business, the Phillips Board of Management first determined the business variables critical for creating values. These "four critical success factors" were determined to be competence (including knowledge, technology, leadership and teamwork), processes, customers, and financial value, growth and productivity. These critical success factors allow managers to look at their business from four perspectives: innovation and learning, internal business, customer and financial (Pearlson & Saunders, (2013) state, "if you can't measure it, you can't manage ...

    Solution Summary

    This detailed solution identifies an organizational situation that uses a balanced scorecard to link performance with results. Includes examples and APA formatted references.