Question

Question:

Strategy and Balanced Scorecard:

1. Describe the 4 perspectives and be able to suggest performance measures for each. What should a Balanced Scorecard achieve regarding strategy?

2. What is Sustainability and a Balanced Scorecard?

Answer 1

Explanation --- First of all what is balanced scorecard ....It is basically a strategy devised by top management of the organisation which gives an overall view of the organisation on ongoing performance and other parameters. It is looking forward at long term goals and devise the strategies accordingly. After analysing it also suggests the measures to achieve those goals in near future more effectively and efficiently

Now Balanced scorecard enables to look at organisation from 4 different perspectives ---

1. Learning and Growth

It gives overall view of the culture surrounding corporate. Are people aware of the latest industry trends? Is it easy for employees to collaborate and share knowledge, or is your company a mess of tangled bureaucracy? Does everyone have access to training and continuing education opportunities?

Technology plays a major role in learning and growth. Are people able to use the latest devices and software, or are your archaic systems stuck running yesterday’s tech? What are you doing to make sure your organization is staying ahead of your competition?

2.Internal Business Processes ---

The internal business processes perspective looks at how smoothly your business is running. Efficiency is important here. It’s all about reducing waste, speeding things up, and doing more with less. Are there unneeded obstacles standing between new ideas and execution? How quickly can you adapt to changing business conditions?

This perspective also encourages you to take a step back and get a little philosophical about your company. Are you providing what your customers actually want? What should you be best at?

3. Customer --

The customer perspective focuses on the people who actually buy your products and services. Are you winning new business? How about keeping your existing customers happy? How are you viewed in your industry compared to your competitors?

Customer satisfaction is a great forward-looking indicator of success. The way you treat your customers today directly impacts how much money you’ll make tomorrow.

4.Financial --

Just because we’re taking a balanced look at your organization doesn’t mean that we want to ignore traditional financial measures. Quite the contrary, the financial perspective is a major focus of the balanced scorecard.

Just because we’re taking a balanced look at your organization doesn’t mean that we want to ignore traditional financial measures. Quite the contrary, the financial perspective is a major focus of the balanced scorecard.

MEASURES TO OVERCOME ---

The final building blocks of a balanced scorecard are measures. Every strategic objective should have one or two things that you measure to determine how it’s performing. These measures need goals and should be measured on a regular schedule.

For example, if a strategic objective were “Increase Acquisitions,” a good measure might be “Number of New Acquisitions.” If the strategic objective were “Increase Employee Expertise,” a good measure might be “Total Departmental Training Hours.”

It’s important to choose a very small number of measures to track. By limiting each strategic objective to one or two measures, you’re able to focus on the things that matter most. Tracking too many measures often means that nothing improves.

Finally, notice how we waited until the very end of building our balanced scorecard to choose measures. That’s because it’s very important to figure out your overall strategy first. If you choose measures earlier in the process, you’ll almost certainly end up measuring the wrong things.

Q2, What is Sustainability and a Balanced Scorecard?

Explanation -- Now as we discussed above Balanced scorecard is a management tool which identifies the performance measure of the organisation and let us know wheteher the strategies are implemented successfully or not. Now comes the linking of sustainability and balanced scorecard which gives sustainable balanced scorecard Sustainability Balanced which shows the causal relation between the economic, environmental, and social performance of firms. With upcoming culture of Corporate social responsibility(CSR) initiatives this comes into picture and becomes more relevant.