Implementing Balanced Scorecard For Business Success Essay.

Once the organization is through with the evaluation of the quantifiable results of the above stated factors they should be prepared in making the best use of the method of Balance Scorecard for improving the areas where there is existence of enough deficiency (Coe and Letza 2014). Along with it the metrics that should be set up needs to be based on SMART (Specific, Measurable, Achievable, Realistic and Timely) for improving the measuring standards.

In the present scenario, the managers need to identify the brunt that measures generally have on the presentation. However, they do not consider measurement to be an integral part of their daily strategy. For instance, managers may initiate fresh strategies and inventive processes in operating projected in attaining infiltrate performance along with continuation of the usage of short-term indicators of finance that have been used for decades like return on investment (ROI), growth in sales and operating proceeds (Perkins, Grey and Remmers 2014). These kinds of managers generally fail in introducing fresh measures in investigating new goals and procedures and in whether or not to continue with the old methods and relevancy of the innovative proposals.

Effectual measurement needs to be an essential part of the process of management. According to Kaplan, R. and Anderson, S.R., 2013, Balance Scorecard offers the managers a complete framework that interprets the strategic objectives of a company into a rational set of measurement of performance. Balance Scorecard is a system of management that helps in motivating infiltrate developments in certain critical areas like product, procedures and development of market.

Benefits of using Balanced Scorecard

Mecklenburg County, NC

There was lack of any sort of stability and sustainable loom to attain the vision in Mecklenburg County that did not have any sort of dependable model for making decisions regarding funding that is being based on precedence and reviewing the larger impact of those decisions. Mecklenburg required developing a model and structure for making decisions that could be unrelenting despite of the economic environment or ideology related to politics. They lacked any sort of way in predicting the long-term influence of the decision, but with the implementation of the system, it led to a penetration performance towards attaining the vision of County and presently it is in use in Mecklenburg County. It is a fundamental part of how the County is supervised that has become replica for other municipal governments across the country.

Balance Scorecard are needed by the non-profit organizations as it has been considered as a great implement for description of strategy and execution. Balance Scorecard assists in describing a policy, focusing on actions that matters and finally accomplishing the strategy productively. As per Knowles, Greatbanks and Manville (2016), non-profit organizations might encounter problems with an enunciation of the strategy, but just trying BSC would facilitate them to enclose their thoughts about strategy in the right possible way.

It also helps in talking the similar sort of language with those making donations. Certain donations that are being made to the nonprofit organizations are generally prepared by for-profit organization. Organizational executives make use of BSC for their premeditated planning. Non-profit organizations have an approach that can be well explained with the Balance Scorecard displaying more opportunities of getting required funding, as they talk with the financial donors in the same language of business (Rampersad and Hussain 2014). In most cases, for-profit organizations agree on the perspectives of BSC; 1. Financial 2. Customer 3. Operational, 4. Learning. However, in case of nonprofit organizations there has not been any such agreement

For-profit business organizations are those who have the habit of commonly of investing into the social programs of non-profit organization. They view financial indicators on their own scorecards and for the same they like to have a comparable way in tracking the performance of their investments that is social in nature in the non-profit organizations. Non-profit organizations prefer a standard order of their perspectives:

• Standard order: Financial; Customer; Operational; Learning

However, it has often been seen that managers of certain non-profit organizations take care of finance as a source, which they do not want to have it at the top of the order. The challenge with this issue is that it would be hard to follow that sort of BCS’s cause-and-effect logic.

• Finance at Bottom: Customer; Operational; Learning; Finance

For charities, the nucleus business is distributing on the mission- assuage  suffering, assisting people in getting back to work and saving the lives of the animals. Many non-profit organizations like Christian Children’s Fund of Canada have executed the method of Balance Scorecard within their organization in helping to manage their advancement in attaining their preferred outcomes. This Balance Scorecard approach have enables such non-profit organizations in measuring results and bringing in the obligatory changes to the varied marketing and operational programs in achieving their mission.

Case study: Developing a BSC for Great Persons, Inc

Six different standpoints can be suggested for the non-profit seeking organizations:

-Allocation of resources

-Donors

-Funding and revenue

-Internal processes and operations

-Learning & Innovation

The categories of internal processes/operations and learning and innovation are the most stimulating factors for the incorporated marketers- highlighting on technology factor and the required infrastructure and skills, culture and formation essential for the purpose of integrated marketing (Matthews 2015). While implementing the approach of Balance Scorecard, it is tough to disregard the impact of business-integrated marketing. Non-profit organizations have always been mission-centric, focusing entirely on the purpose they have set out. Cancer Society’s defining of success should not be ‘curing cancer’ but ‘dropping the deaths that have been caused by cancer’. This assists the cancer society in focusing less on the research work and more on early recognition and other deterrence practices.

Kaplan and Norton are the two famous persons that have in their credit the development of Balanced Scorecard Model in 1992. The main purpose behind the construction of the method was to provide organization something that could provide them a solid grip on the measurement of their financial performance (Chen, Chiang and Storey 2012). Within just ten years, 1000 of companies have are on their way to utilise the tool to measure their financial performance. The list of the companies is full of private, public and non-profit organizations. The traditional metric used for the financial performance of the Company was only aimed to measure the financial related sector of the Company. However, the model has enabled in adding some more metrics into the financial measurement techniques. The added metrics are such as customer, learning & growth and internal process (Biazzo and Garengo 2012).

Despite of all the popularities that the model has collected, it fell short in terms of its affectivity. This is because of the fact that results were varied from successful to unsuccessful to no tangible results. According to Neely et al., the model has limitations, as it does not cover the scholarship. The limitation can even reduce the effectiveness of the BSC model in measuring the financial performance of an organization (Rohm and Malinoski 2012). According to Madsen and Stenheim (2014), the advantages of BSC model; however, they also believe that not all the parts of the model are effective (Henderson, Pricewaterhousecoopers and Mittl 2012). They further argue that practitioners, business experts need to understand about the limit of values of the BSC model. They believe that it is not a mature concept. Because of the variations in it, it has resulted in different outcomes to different organizations. Basuony (2014) also finds this as an immature process that benefits smaller organizations but not as beneficial to the larger organization (Intelligence 2014). However, Casey and Peck (2004) have supported the BSC process. In their point of views, the process is beneficial to the organization. It benefits organization by providing the managers a source to have a deeper study on the financial performance of the Company (Loshin 2012). Nazim (2015) do also supports the BSC model. They believe that it is useful as it transforms strategies into tangible metrics that can easily be evaluated by the managers (Maltz et al. 2012). According to (Pessanha and Prochnik, 2006), the process is a serious failure once it is implemented in the organizational practices. It has high rates of failure in the implementation and produces variable answers in both its interpretation and practice.

Measuring key areas of success: Financial status, employee satisfaction, and customer retention

The BSC process is helpful in finding the financial performance of the smaller organizations. However, it is not that effective in case of larger organization (Rausch, Sheta and Ayesh 2013). This is because of the fact that this is still under the developing stages. This needs certain considerations and modifications in the light of authorial facts and the business experts to give it, the more fruitful effect. This is a good move by Kaplan and Norton as they had produced a good process to measure the financial performance of the Company. However, the process seriously lacks in its productivity in case of larger organizations (Person 2013).