Ghana Institute of Management and Public Administration

GHANA INSTITUTE OF vigilance AND PUBLIC ADMINISTRATION (GIMPA) MBA (PROJECT MANAGEMENT OPTION) GMBA 799 STRATEGIC MANAGEMENT STUDENT chassis EMMANUEL SESSOU STUDENT ID NUMBER MBAE 10040217 Question Write a short card on the Balanced Scorecard Balanced ScorecardBasics The equilibrise plug-in is astrategic planning and management systemthat is utilize extensively in note and industry, government, and nonprofit compositions worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization movement against strategic goals.It was originated by Drs. Robert Kaplan (Harvard art School) and David Norton as a effect quantity framework that added strategic non-financial performance measures to traditional financial poetic rhythm to give managers and executives a more equilibrize view of organizational performance. The balanced scorecard has evolved from its early use as a simple performance measurement framework to a fullstrategic planning and management system. The balanced scorecard retains traditional financial measures. only when financial measures tell the story of bypast veritable(a)ts, an adequate story for industrial age companies for which investments in long-term capabilities and node relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that training age companies must make to create future value with investment in customers, suppliers, employees, processes, technology, and innovation. The balanced scorecard suggests that we view the organization from quadruplet places, and to develop metrics, collect data and analyze it relative to each of these perspectives The education & Growth stead, The Business Process Perspective, The Customer Perspective and The Financial Perspective The Learning & Growth Perspective This perspective includes employee training and corporate et hnical attitudes related to both individual and corporate self-improvement. In a knowledge-worker organization, great deal the only repository of knowledge are the main resource.In the current mode of rapid technological change, it is becoming necessary for knowledge workers to be in a continuous learning mode. Metrics put forward be mould into place to guide managers in focusing training funds where they can help the around. In any case, learning and growth constitute the all important(p) foundation for success of any knowledge-worker organization. The Business Process Perspective This perspective refers to internal business processes. Metrics based on this perspective quit the managers to know how well their business is running, and whether its products and services conform to customer requirements (the mission).These metrics have to be carefully designed by those who know these processes most intimately with our unique missions these are not something that can be real b y outside consultants. The Customer Perspective Recent management school of thought has shown an increasing realization of the importance of customer focus and customer atonement in any business. These are leading indicators if customers are not satisfied, they pass on eventually find other suppliers that go forth meet their needs. Poor performance from this perspective is thus a leading indicator of future decline, even though the current financial picture may look good.In growing metrics for satisfaction, customers should be analyzed in terms of kinds of customers and the kinds of processes for which we are providing a product or service to those customer groups. The Financial Perspective Kaplan and Norton do not dis impress the traditional need for financial data. Timely and finished funding data will always be a priority, and managers will do whatever necessary to provide it. In fact, often thither is more than enough handling and processing of financial data.With the impl ementation of a corporate database, it is hoped that more of the processing can be centralized and automated. But the point is that the current emphasis on financials leads to the unbalanced situation with regard to other perspectives. There is perhaps a need to include additive financial-related data, such as risk assessment and cost-benefit data, in this category. Reference Robert S. Kaplan and David P. Norton, employ the Balanced Scorecard as a Strategic Management System, Harvard Business Review (January-February 1996) 76.