Overviewof the Balanced Scorecard
Abalanced scorecard can be thought of as a strategic management toolwhich the management of various organizations can use to monitor howthe activities of employees affect the related operations. The originof the concept can be traced back to the 1990s when Robert Kaplan andDavid Norton developed and published the idea in Harvard reviewjournal. It can transform a company’s mission and vision intoobjectives which can be quantified and measured. Therefore, it canquantify financial performance, the performance of business processesin the market, innovation performance, and employee performance amongothers. This tool can further be defined by two characteristics.Firstly, it focuses on organizations` main agenda. Secondly, it usesa small number of data to measure various processes. This paper seeksto determine the ideal inputs for the four major elements of theBalanced Scorecard.
Oneof the most crucial issues in every organization is the desire todetermine whether their responses are sufficient in meeting theexpectations of clients in the market. In fact, every organizationalfunction, including marketing and advertisement, and improvement ofproduct quality aims at attracting customers to the brand of therelated company. A larger market base translates to an increase in anorganization’s profit margin. Apparently, if a firm has a largermarket base, then it means that they are meeting the expectations ofmany people. Therefore, as a quality department officer, I wouldenhance the experience of customers by using value co-creation andimproving consumer engagement strategies. These approaches aim atcollecting information from people regarding the improvements theywant in the products or services delivered by the company(Cossío-Silva et al., 2016). Consumer engagement, particularly, canbe conducted through social media platforms where the organizationcollects the attitudes, opinions, and perceptions of consumersregarding its operations, products, and services and use such piecesof information to assess their position in the market (Cossío-Silvaet al., 2016).
InternalPerformance of Organizational Processes
Theinternal performance of an organization should facilitate theachievement of its goals and objectives. The aim of all agencies inthe business sector is to increase their profit margin. Some of therelated targets include enhancing the impacts of employees to theorganization, cutting the cost of operation, improving the efficiencyof the production processes, and the adoption of best practices.These goals form the benchmarks for the assessment of the performanceof specific procedures. I would target each process and use theoutcome to measure whether it was successfully implemented. Forinstance, I would measure the performance of marketing andadvertisement process by determining the current size of thecompany’s customer base. Depending on the outcome of the process, Iwould focus on building the brand of the enterprise in the industry.The process of building a strong brand requires the delivery ofhigh-quality products or services, being consistent in the market,embracing the concept of corporate social responsibility, andestablishing a strong corporate culture which guides the activitiesof employees.
Financialperformance is a measure of how well an organization has used itsassets and resources to generate revenues. Each year, companies setrealistic profit targets and develop strategies which they will useto achieve them and offer high appeal to stakeholders. The term isalso used to refer to the general health of an organization. Abusiness that generates a lot of profits from the minimum input issaid to be relatively healthy compared to the ones that use a lot ofresources to produce the same profit. Correspondingly, anorganization that uses a lot of resources, but end up generatingfewer revenues is said to be less effective. Additionally, a firmwhich has the potential of reaching a particular financial target issaid to be healthy is if it indeed reaches or surpasses the goal. Onthe hand, it is considered dysfunctional if it fails to reach thetarget. The company is also ineffective if its profit margin reducesfrom one year to another. In other words, an enterprise should beable to maintain a particular level of profitability each financialyear depending on the past financial performances. As the manager, Iwould aim at cutting the cost of production to maximize the company’sprofit margin (Chakraborty & Chatterjee, 2009). This approach canalso give the company a greater opportunity to reduce the prices ofits products further, thus attracting people from all socioeconomictiers.
Anorganization`s ability to improve its products regarding design,quality and performance rely on the level of innovation. In otherwords, a business with innovators and great designers will alwayscome up with new products or improve the existing ones. As a manager,I would enhance the innovative capability of employees by organizingcapacity building sessions and refresher courses to boost theirmental abilities. Secondly, giving employees the opportunity to workautonomously at work also inspires them to try new and differentthings (Bahadur & Doczi, 2016). Enhancing employee relationswithin the organization also facilitate information exchange, thusimproving their knowledge. Similarly, developing the relationshipbetween employees and the management also gives them a lot ofconfidence at work. As a result, they do not become limited by theirfear of supervisors. Rather, they see them as sources of guidance inthe implementation of organizational policies and procedures.
Bahadur,A., & Doczi, J. (2016). Unlockingresilience through autonomous innovation.Working Paper. London: ODI.
Chakraborty,S. K., & Chatterjee, S. R. (2009). AppliedEthics in Management: Towards New Perspectives.Berlin, Heidelberg: Springer Berlin Heidelberg.
Cossío-Silva,F. J., Revilla-Camacho, M. Á., Vega-Vázquez, M., &Palacios-Florencio, B. (2016). Value co-creation and customerloyalty. Journalof Business Research,69(5),1621-1625.