BALANCE SCORECARD
Balance scorecard measure describes clearly about achieving its objective successfully. Measurement is a powerful tool; it communicates company statements such as strategic objectives, vision and mission.
We can also categorize the desirable character for the particular measure of balance scorecard. Financial measure of balance scorecard initiates the employee towards increasing the return on equity of the organization. The customer measure targets towards the percentage of customer turnover; increase the sales and maximize customer satisfaction.
Example:
Balance scorecard measure - On Time Delivery (Customer)
Desirable characteristics -
• Eliminates ambiguity
• Clear production process
• Builds employee focus
Explanation -
Toyota uses just-in-time production process with essentially no materials or components inventory. It considers an order to be on time only if it arrives within 1 hour of the scheduled delivery time.
Toyota is not interested in the efforts put by the vendor to ship the item on time. The company is more concerned about the end result to arrive at its factory site on time.
The company hereby eliminates the ambiguity between the supplier and customers by clearly defining the definition of “On Time Delivery”. This provides the employee to focus on the target and improves employee efficiency at large.
Organization always measures the processes in view to the customer’s perceptive. The control which would prevail on the processes will depend mostly on the welfare of the customer.
We illustrate an airline industry in relation to context;
When we analyze in the customer perspective, we tend to track on-time arrivals and departures in a particular airport. Customer satisfaction is relied upon this kind of information. A satisfied customer remains as the best marketer for our product. Thus the management and employees inputs a certain level of control over these activities.
When we analyze in the process perspective it should
We can also categorize the desirable character for the particular measure of balance scorecard. Financial measure of balance scorecard initiates the employee towards increasing the return on equity of the organization. The customer measure targets towards the percentage of customer turnover; increase the sales and maximize customer satisfaction.
Example:
Balance scorecard measure - On Time Delivery (Customer)
Desirable characteristics -
• Eliminates ambiguity
• Clear production process
• Builds employee focus
Explanation -
Toyota uses just-in-time production process with essentially no materials or components inventory. It considers an order to be on time only if it arrives within 1 hour of the scheduled delivery time.
Toyota is not interested in the efforts put by the vendor to ship the item on time. The company is more concerned about the end result to arrive at its factory site on time.
The company hereby eliminates the ambiguity between the supplier and customers by clearly defining the definition of “On Time Delivery”. This provides the employee to focus on the target and improves employee efficiency at large.
Organization always measures the processes in view to the customer’s perceptive. The control which would prevail on the processes will depend mostly on the welfare of the customer.
We illustrate an airline industry in relation to context;
When we analyze in the customer perspective, we tend to track on-time arrivals and departures in a particular airport. Customer satisfaction is relied upon this kind of information. A satisfied customer remains as the best marketer for our product. Thus the management and employees inputs a certain level of control over these activities.
When we analyze in the process perspective it should