Ghana Institute of Management and Public Administration

gold coast INSTITUTE OF MANAGEMENT AND PUBLIC ADMINISTRATION (GIMPA) MBA (PROJECT MANAGEMENT OPTION) GMBA 799 STRATEGIC MANAGEMENT scholar NAME EMMANUEL SESSOU STUDENT ID NUMBER MBAE 10040217 Question Write a short note on the match Scorecard Balanced ScorecardBasics The equilibrise plug-in is astrategic planning and man seasonment systemthat is use extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, rectify internal and external communications, and monitor organization murder against strategic goals.It was originated by Drs. Robert Kaplan (Harvard Business School) and David Norton as a performance measurement framework that added strategic non- monetary performance measures to traditional financial metrics to give managers and executives a much balanced view of organizational performance. The balanced scorecard has evolved from its early use as a unbiased performa nce measurement framework to a fullstrategic planning and management system. The balanced scorecard retains traditional financial measures.But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures atomic number 18 inadequate, however, for guiding and evaluating the journey that entropy age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation. The balanced scorecard suggests that we view the organization from four statuss, and to develop metrics, collect data and analyze it relative to for each one of these perspectives The Learning & step-up Perspective, The Business Process Perspective, The Customer Perspective and The Financial Perspective The Learning & Growth Perspective This perspective includes employee training and cor porate cultural attitudes related to both individual and corporate self-improvement. In a knowledge-worker organization, people the only repository of knowledge are the main resource.In the current climate of quick technological change, it is becoming necessary for knowledge workers to be in a continuous learning mode. prosody evoke be put into place to guide managers in focusing training funds where they send word help the most. In both case, learning and growth constitute the essential foundation for success of any knowledge-worker organization. The Business Process Perspective This perspective refers to internal business processes. Metrics based on this perspective allow 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 nooky be develope d by outside consultants. The Customer Perspective Recent management philosophy has shown an change magnitude realization of the importance of customer focus and customer satisfaction in any business. These are lead story indicators if customers are not satisfied, they will eventually find other suppliers that will 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 developing 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 brush aside the traditional need for financial data. Timely and accurate funding data will always be a priority, and managers will do whatever necessary to provide it. In fact, often there is more than enough handling and processing of financial data.With the imple mentation 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 ask to other perspectives. There is perhaps a need to include additional financial-related data, such as stake assessment and cost-benefit data, in this category. Reference Robert S. Kaplan and David P. Norton, Using the Balanced Scorecard as a Strategic commission System, Harvard Business Review (January-February 1996) 76.