Asian Business Press

Posts Tagged ‘Balanced scorecard’

The internal business perspective check out the internal operations of the companies that are essential to enable them to meet customer needs. The question to be answered in this perspective is, “What activities are to excel in?” Customer’s perspective, however, takes into account the perceptions of the company’s target customers. Typical indicators of the client’s perspective, satisfaction and customer retention and market share in target segments. The financial perspective, for its part, the study includes financial measures that relate to profitability and market share. For public and private sectors, financial measures are of great importance, especially for those interested.

Common measures in the financial perspective include operating income, economic value added, and the return on capital employed. Finally, the prospect of innovation and learning is the ability of companies to make improvements within the organization. This perspective answers the question: “What can be done to create and enhance value for our products and services?” Relevant to this outlook include employee retention, skills and employee satisfaction. Read the rest of this entry »

Presented by Robert S. Kaplan and David Norton through some magazine articles, the CM approach was designed to test whether two schemes in small and large scale-are consistent with overall company strategy and vision.

Formulation of objectives scorecard is a necessity for companies that want to use the Balanced Scorecard (BSC) approach to measure business performance. Read the rest of this entry »

If a new name called, what would it be? Well, I think I’ll leave that to the creators to design, if desired. However, if pressed, I would suggest maybe an acronym as FAMIG. As in “Since installing FAMIG in our company, we have seen customer satisfaction, employee morale, and increase profits by 50%.” Here is the component:

• Entire company focus on clear goals and medium-long term
• Align the whole world (with strategy maps) with the strategy and objectives
• Measurement of the strategy to operations budgets of individual skills
• Fully integrate the strategy and operations to become part of everyday life strategy
• Government through regular reviews of strategy and operation, then learn and adjust

True, FAMIG is not a better name and I’m not seriously offering it as a replacement for the Balanced Scorecard. But I worry that the benefits of the Balanced Scorecard for employees, customers and shareholders do not enjoy, because it could simply because the process has outgrown its name. My hope is that someday it will change the name or, over time and with many more deployments, fully understood its meaning for the benefit of all.

They called a scorecard, because the initial focus was on measurement. But over the years, learning from early adopters, the Balanced Scorecard was developed in a practical and comprehensive management system with emphasis on attention, learning, alignment of the organization, workforce participation, and measurement. Bain & Co. reports that in 2007 almost 70% of companies surveyed were using the Balanced Scorecard somewhere in their organizations. And because it’s not just a way to measure intangible assets, the Balanced Scorecard has been implemented by the manufacturing sector as much as in the service industry / technology.

The scorecard needs a new name? Read the rest of this entry »

Let’s face it, for people who do not know what the scorecard is, the name itself can be a diversion. It does not sound complex, technical, critical, and definitely fun. It is a complicated metric exercise? No ratings bad that people in trouble? What the expensive software? And you use it? Is a C-level tool to control the workforce? If you stay away from it? Unfortunately, the Scorecard has an identity problem, and that is definitely not what the name implies.
It is a complicated metric exercise? No ratings bad that people in trouble? What the expensive software? And you use it? Is a C-level tool to control the workforce? If you stay away from it?

Unfortunately, the Scorecard has an identity problem, and that is definitely not what the name implies. The Balanced Scorecard is a holistic management process that puts strategy at the center (with a mechanism to measure their effectiveness, ie, the scorecard) and involves all staff in the implementation of the strategy that almost always improves moral. Think of it as MBO, management by objectives, updated at MBS, the management strategy. Read the rest of this entry »

High performance organizations have a fundamental difference that separates them from other organizations – Strategic Planning. They focus on generating growth and high performance to their organizations. With the participation of the entire organization to ensure that all parts move in the same direction.

The balance scorecard (BSC) can be used by companies with five employees or 5,000 who are working toward the same goals. The BSC is a strategic management tool that is about the Fortune 1000. The Harvard Business Review notes the BSC as one of the most important management tools in over 75 years. The BSC has been used to assist in changing organizational culture, improving operational efficiency and profitability. The financial measures are not sufficient to measure performance. Economic factors such as competence and knowledge, customer focus, operational efficiency and innovation are the missing links of the traditional financial reporting. Read the rest of this entry »