Your boss recently attended an accounting seminar at which the Balanced Scorecard was discussed. He has asked you to prepare a presentation for the next manager's meeting about the Balance Scorecard and how SAC might adopt it. In your presentation, define Balanced Scorecard, explain how it is used, and make a recommendation if SAC should adopt the Balanced Scorecard, and if adopted, how it might improve the company.
Balanced Scorecard- An Evaluation for SAC
What is Balanced Scorecard?
The balanced scorecard is a tool in the hands of management through which they align business activities with vision and mission of organization, improve internal and external communications, and monitor performance against strategic goals (Balanced scorecard..., n.d). The balanced scorecard has seen innovation from its tradition use as a performance measurement framework to a full strategic planning and management system. It helps managers identify what should be done and how it should be done to fully execute organization's strategies. It is a traditional system that enables organizations identify their goals and vision and help in translating them into action. It provides continuous feedback around both internal business processes and external outcomes to continuously improve strategic performance.
Why Implement Balanced Scorecard?
• Increase focus on strategy and results
• Improve organizational performance
• Align organization strategy with day-to-day functions performed by people
• Focus on drivers of future performance
• Improve communication of organization's vision and strategy
• Prioritize projects/Initiatives
The Balanced Scorecard increases focus on strategy and vision of the organization to improve results. It provides a performance measurement framework that adds non-financial perspective to traditional financial perspective to provide managers with more balanced view of organizational performance. The evolution of the balanced scorecard from traditional performance measurement system to full strategic and management system helped organizations transform their strategic plan to align with day-to-day functions performed by its employees. It helps planners not just improve upon the present situation but also identify what could be done to improve future performance. Balanced Scorecard also improves organization's internal and external communications regarding the vision and strategy and aligns business activities with them. Finally, Balanced Scorecard helps in providing managers with the right information to prioritize projects and initiatives so as to attain maximum benefit for the organization.
Balanced Scorecard Framework
The balanced scorecard concept involves creating a set of measurements for four strategic perspectives. These perspectives are:
3. Internal business process
4. Learning and growth
The measurements should be focused on a single strategy, and be linked and mutually fulfilling. These ...
A presentation about the balanced scorecard are examined.