Implementation of the Balanced Scorecard Order Instructions: Implementation of the Balanced Scorecard
The term balanced scorecard became part of professional accounting vernacular in the early 1990s. This nontraditional approach to measuring strategic performance was developed by Dr. Robert Kaplan and Dr. David Norton. As the name implies, the goal of the balanced scorecard is to provide stakeholders with a balanced view of the performance of an organization. To prepare for this Application, review Case 14-1 “Global Oil” in Chapter 14 of your course text. After reading and analyzing the information presented, respond to the following:
The Implementation of the Balanced Scorecard Assignment
Provide a critical analysis of M&R’s implementation of the balanced scorecard, including an identification of the strengths and weaknesses of the program.
?Prepare a response to the following: Was the adoption of the balanced scorecard at M&R responsible for turning around the organization’s financial performance? Explain your answer
Implementation of the Balanced Scorecard Sample Answer
Introduction
The balanced scorecard has been applied by many managers to spearhead performance measurement tool in view of strategic management to enhance control and performance improvement. The balanced scorecard (BC) tracks any changes that have been made and provides feedback to the management on the systems that have been introduced and their performance ratings. The basis of the BC is that no single measure can provide clear performance target but a series of balanced presentations of both financial and operational measures can result in the successful performance of any company. The major perspectives are financial perspectives, internal business perspectives, customer perspectives and innovation and learning perspectives (Kaplan & Norton, 1993).
The success of the company cannot be largely attributed to the implementation of the BSC alone. Other factors like staff motivation and expansion strategies also contributed to the success of the company. However, the introduction of the one stop center for gas and snacks has contributed much more to the company than other strategy as its part of the customer perspectives and innovation and learning perspectives (Kaplan & Norton, 1996).
The initial success of the M & R was largely due to the reorganization of the management’s major operations and the expansions of the various departments of the organization but most of the successes were registered when the BSC feedback systems provided a control system for its performance and identified the weaknesses of the company. Lack of effective coordination and accountability accounted for the poor performance of the company during its difficult periods. To conclude, the success of the BSC also depends on other factors as it cannot be successful on its own. The performance metrics applied in BSC measure the overall performance of a company.
Implementation of the Balanced Scorecard References
Kaplan, R.S., Norton, P. (1993) Putting the Balanced Scorecard to Work, Harvard
Business Review, 71 (5), pp. 134–142.
Kaplan, R.S., Norton, P. (1996) Using the Balanced Scorecard as a Strategic Management
System, Harvard Business Review, 74 (1), pp. 75–85.
