Question

accounting

for your place of employment (office job, business, etc.) indicate a measure that could be used for each category of the balanced scorecard. Please comment on the benefits or detriment of implementing the balanced scorecard at your place of employment.

Answer 1

A balanced scorecard is a performance assessment used in strategic management in order to identify internal functions of a business and improve various important internal functions of a business and their external results. Balance scorecard is used to assess and provide feedback to the business organizations. Data collection is important in providing quantitative results, as the information gathered is understood by managers and executives, and used to make better decisions for the organization.

Benefits of Balance Scorecard in the work place:

1. Balance Scorecard gives framework to organization strategy.

Business organizations today, frequently talk about the performance of organization (and strategy) in different ways. Thus, there are different approaches to strategic management for an organization.

2. Balance Scorecard makes easy to communicate organization strategy.

A strategy map is formed to communicate a strategic plan of the organization. Balance Scorecard is a clean, simple visual assistance used to regulate each and every department or division for the purpose of accomplishing high-level business targets, if implemented correctly, its:

• Gives employees clear objectives to keep in mind while working on their projects.
• Assists employees in identifying key targets.
• Allows employees for understanding strategic components that need work.
• Facilitates employees to see how objectives affect one another.

3. Balance Scorecard aligns organization departments and divisions.

For successful implementation of Balance scorecard, all divisions and departments of organization should align with a common strategy, and the Balanced Scorecard will facilitate this process. The Balance Scorecard also gives the structure needed when large projects are shared across multiple divisions.

4. Balance Scorecard enables organization employees see how their individual goals link to the organizational strategy.

The Balance Scorecard allows individuals to align their goals across the organization. For example, an employee setting regular performance goals for an annual personal review can link their goals to those of their division or department. Thus, the Balance Scorecard allows employees to connect what they are doing to the advancement of the team and the organization as a whole.

Detriment of Implementing Balanced Scorecard:

1. Balance scorecard requires strong leadership base to be successful.

Organization may be having stress with their scorecard because new leadership was not convinced that Balance Scorecard is a usable option or organization existing leadership may not show interest or understand the Balance scorecard framework. It is very important to remember that the Balance Scorecard requires a total reconstruction of organization management

2. Balance Scorecard can be difficult to keep everyone on the same track.

Many organizations try to manage their scorecard in paper and end up throwing it away. The leaders are likely to see the Balanced Scorecard as problem (issue) instead of weapon used to manage it.

3. Balance scorecard may appear too rigid for the way you manage.

Sometimes Balanced Scorecard process can cause confusion within an organization. Many organizations decide to quit the Balance Scorecard and return to their old ways rather than taking time to adapt the same.