A balance scorecard is basically a mix of financial and non-financial data items used by the company to properly assess and focus on the strategic agenda the company is concerned with. Strategy is basically defined as a set of decisions directed towards diferent aspects of the business. Having key performance indicators afect manager and staf's behaviors towards work: they become more motivated.
A balance scorecard is basically a mix of financial and non-financial data items used by the company to properly assess and focus on the strategic agenda the company is concerned with. Strategy is basically defined as a set of decisions directed towards diferent aspects of the business. Having key performance indicators afect manager and staf's behaviors towards work: they become more motivated.
A balance scorecard is basically a mix of financial and non-financial data items used by the company to properly assess and focus on the strategic agenda the company is concerned with. Strategy is basically defined as a set of decisions directed towards diferent aspects of the business. Having key performance indicators afect manager and staf's behaviors towards work: they become more motivated.
Reflection Paper 2: Balanced Scorecard & Strategy The talk on Strategy and Balanced Scorecard revealed important aspects any company must know and execute in order to work towards a long-term sustainable growth and profitability. A balance scorecard is basically a mix of financial and non-financial data items used by the company to properly assess and focus on the strategic agenda the company is concerned with. This scorecard acts as a semi-standard report that helps managers keep track of the executed activities of both the staf and manager; and it helps track the status of company agendas. Lastly, it monitors the consequences of the carried out strategic plans by seeing the causal relationship between the strategic step and the result it produces. But before anything else, after establishing what the company wants to pursue/aim, through the formulation of objectives, they must go over a strategy. Strategy is basically defined as a set of decisions directed towards diferent aspects of the business that any management must prepare in order to work towards efficiency and profitability. Strategies are structured to go well with the business model in order to achieve companys objectives, one of which is to gain competitive advantage over competitors in their industry. Any strategy involves a series of steps that touch on the following aspects: financial, customer, internal process and learning & growth. In order to achieve financial success, customers must see the value of the product. In order to do that, internal processes must be excellent enough to produce the high quality product the company is working towards to give to its market. In addition to this, being able to have a solid foundation of the internal processes the company has, it must equip its people with the right skill sets and the company with the best technologies in order to efficiently execute these internal processes. Once this is achieve, then the company can say that they have the proper strategy map. However, strategy is not the sole most important thing a company must have. They must have measures and targets per strategic element through key performance indicators in order to see the efectiveness of the strategies theyve formulated and see its overall efect to the company. Having key performance indicators afect manager and stafs behaviors towards work: they become more motivated especially if the measures reached have corresponding rewards. This is where setting strategic initiatives goes in: strategic initiatives are prepared in order to achieve the targeted goals. These initiatives must be smart, feasible and must serve as a driving force in order for the work force (manager and staf) to work hard to get where they want to be. This last step, strategic initiatives, is what wraps up the balance scorecard.
It is important for any company to have something that incorporates
both companys focus and implementation of strategic steps in order to pursue the companys objectives; thus the making of a balance scorecard. Basically, how it goes is: 1. Company must set objectives. 2. Measurements must be established to see and measure if objectives are met. 3. Targets must be set in order to see the direction of the strategy implemented. 4. Initiative must be given both staf and managers in order to motivate them towards company efficiency and profitability through the accomplishment of company objectives. Beware of bad execution. Not being able to get things done because of excuses, delays or poor overseeing of processes can cause the company to not reach company objectives and put them at a disadvantage. Bad execution is one of the fatal shortcomings any company can have that would push them downhill. It is important to be decisive about decisions and to deliver on commitments so that plans would fall into place and the company can work itself towards success.