Question

Please be specific in outlining or talking about the four perspectives. I submitted this question couple days ago, Someone answered the question and my professor mark it incorrect. They didn't include any of the perspective. He needs me to include the perspectives in my answer. These are the Examples of the perspectives. Learn and Growth, Process, Customers, and Financial perspectives. I will appreciate if someone help me out.

Outline a Balanced Scorecard for your business school. How would using Balanced Scorecard system affect the management of the school?

Answer 1

The Balance Scorecard is a method which displays organisation's performance into four dimensions namely financial, customer, internal and innovation. The four dimensions acknowledge the interest of shareholders, customers and employees taking into account of both long term and short term goals. Kaplan and Norton classified performance measures into four business perspectives.

Financial Perspective : Financial Performance measures indicate whether the company's strategy implementation and execution are contributing to its revenue and earnings.

Customer Perspective : In this stage, companies identify customers and market segments in which they compete and also the means by which they provide value to these customers and markets.

Internal Business Perspective : In this stage, companies identify processes and activities which are necessary to achieve the objectives as identified at financial perspectives and customer perspective stage. These objectives may be achieved by reassessing the value chain and making necessary changes to existing operating activities.

Learning and Growth Perspective : In this perspective, companies determine the activities and infrastructure that the company must build to create long term growth, which are necessary to achieve the objectives set in the previous previous three perspectives.

The Critical Sucess Factors and Key Performance Indicators for a Business School for each of the Perspective in the Balanced Scorecard are given below

Perspective	The Critical Sucess Factors	Key Performance Indicators
Financial	1. Be the most Profitable business school in the industry 2. Become No.1 Business school in terms of market share in 5 years	1. Profitability Ratios 2. Revenue Growth
Customer	1. Be the most customer preferred business school 2. Implement Zero Complaints Policy	1. No. of new admissions per year 2. No of complaints from students
Internal Business	1. Total Quality Management for teaching 2. Zero Abnormal Idle Time for Faculties	1. No of students failed 2. Abnormal Idle Time
Learning and Growth	1. Latest technology used in teaching 2. Skill development for Faculties.	1. No of new ways of teaching implemented. 2. Training sessions for faculty

Impact of using Balanced Scorecard :

1. The Balanced Scorecard provides a powerful framework for building and communicating strategy. The business model is visualised in a Strategy Map which helps decision-makers of the business school to think about cause-and-effect relationships between the different strategic objectives.

2. Having a one-page picture of the strategy allows business school to easily communicate strategy internally and externally.

3. The Balanced Scorecard can be used to guide the design of performance reports and dashboards. This ensures that the management reporting focuses on the most important strategic issues and helps companies monitor the execution of their plan.

4. Well implemented Balanced Scorecards also help to align organisational processes such as budgeting, risk management and analytics with the strategic priorities. This will help to create a truly strategy focused Business School.