Posted: October 26th, 2022
There are TWO tasks that you would need to do( they are separate):
Task 1 (Minimum 300 words):
This week we will discuss the Balanced Scorecard.
1. Review at least 4 articles on Balanced Scorecard.
2. Write annotated summary of each article. Use APA throughout.
3. As an IT professional, discuss how you will use Balanced Scorecard to manage IT resources efficiently.
Write a reply to the two responses in the attached document ( Response 1 and Response 2) with 150 words for each.
There should be no plagiarism. Attach a plagiarism report with 0 % similarity index.
A balanced scorecard is mainly used by an organization to identify and improve the internal functions of a business. It is a performance metric which is used to measure organizational performance and give feedback. So this balanced scorecard can be called as the business performance management tool. It also helps in balancing the financial measures along with performance measures, and it also measures all the critical objectives of the organization. This balanced scorecard is just simply not a scorecard, it is actually a methodology. The process of balanced scorecard starts firstly by identifying the financial and non-financial aspects in accordance with the strategic priorities. Next, it analyses the measures and then set the targets for the measures (Lim, Sandra 2019). This balanced scorecard is extensively being used across various business and government industries. This balanced scorecard mainly views the organization in four perspectives:
Financial: The financial perspective mainly deals with organizational financial performance and how the financial resources are being used to perform business operations.
Customer satisfaction: This perspective helps to see the organizational performance with the customer’s point of view and the other stakeholders the organization is dealing with. Simply it helps in understanding how customers see the organization.
Internal process: This perspective helps in knowing how good the organization is performing, it lenses the quality of the service or product and identifies whether they are meeting the customer’s requirement. This is the area where creative and news ideas are mainly focused.
Organizational capacity: This perspective measures the organizational performance by the performance of the people, infrastructure, the technology used by the organization, organizational culture, leadership and the other aspects which are the key points that help in increasing the organizational performance.
From the past few decades, this balanced scorecard is widely being used by the IT professionals, this is mainly used by them to align the company’s IT strategy with the business strategy. This should be leveraged by all the organizations as it helps in focusing mainly on the goals and objectives of the organization. It helps in identifying and improving in the weak link areas, and thus efficiency and productivity of the organization are enhanced.
Businessused a balance scorecard to build strategy, create planning, and manage communication, optimize and monitor procedures, create alignment on a day to day basis, and predict future opportunities (Marcu, Gheorghe, 2020). A company uses a Balanced Scorecard’s two indicators – one is a leading indicator and another one is a lagging indicator, to identify the driving components and potential outcomes of a business’s goal (Senarath, S.A.C.L., Patabendige, S.S.J. b, 2015). With these indicators, companies can measure success, track performance, and accomplish their objectives. It is a great business framework that helps a company to connect resources and information across various business components. For example, a finance analyst can use a balanced scorecard to understand what business sources are connected to a project, what strategic approaches a company has, what kinds of metrics to measure success, the big picture and long term goal of a company, a company’s mission statement and a vision of a company. To create and build business objectives, a company usually uses four major perspectives of a balanced scorecard.
Four perspectives of a balanced scorecard
Financial / Stewardship: uncover the insights of a company’s financial performance and identify financial goals. For example, how much of revenues to generate or costs to be saved that can help a company to increase competitive advantage and create greater financial impact?
Customers & Stakeholders: identify customers and stakeholders demands. For example, what products or services our customers want? What offering could we provide to create a bigger impact to the company’s finance
Internal Process: identify internal processes that can help a company to satisfy customers or stakeholders and achieve financial goals. For example, how does the operation and marketing process look alike and how cross functional departments can follow processes to align actions and achieve the same goals?
Organizational Capacity/ Learning and growth: identify the institutional capacity to build and follow processes to increase customer satisfaction and achieve financial goals. For example, what kinds of employee training programs, company culture, human resources does a company have for them to accomplish financial goals, fulfill customer demands, and form a business process.
Many different types of business or organizations can use balanced scorecards such as tech company, non-profit organization, marketing agency, health care company, and manufacturer. Business of all sizes and across all industries can benefit from using balance scorecard.
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