Balanced Scorecard was developed in the early 1990s by two guys at the Harvard Business School: Robert Kaplan and David Norton. The key problem that Kaplan and Norton identified in the business of the day was that many companies tended to manage their businesses based solely on financial measures. While that may have worked well in the past‚ the pace of business in today’s world requires more comprehensive measures. Though financial measures are necessary‚ they can only report what has happened in
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Capstone-Spring 2013 What is Balanced Scorecard? “The balanced scorecard (BSC) gives the upper management with tools needed to drive the company to the future‚ to the path of success. Organizations are competing for space in complex markets with so many resources and information‚ such that an accurate assessment of their goal‚ objectives and the methods for attaining them is extremely vital. The Balanced Scorecard (BSC) converts a company’s mission‚ strategy and objectives
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pursued by an organization or management team. It is an element of the documentation associated with the Balanced Scorecard‚ and in particular is characteristic of the second generation of Balanced Scorecard designs that first appeared during the mid 1990s. The first diagrams of this type appeared in the early 1990s‚ and the idea of using this type of diagram to help document Balanced Scorecard was discussed in a paper by Kaplan & Norton in 1996.[1] The strategy map idea featured in several books
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(a) Norwalk Division Balanced Scorecard | | Objectives | Measures | Targets | Initiatives | Financial perspective | Maximise return on development spending Increase profits | Return on research capital (RORC) Product profitability | 30% 25% per year | Develop and introduce new productsIntroduce an intense marketing campaign | Customer perspective | Increase market shareImprove customer satisfaction | Market share Customer complaint rate | 25%< 5% | Customer loyalty
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of Change: India’s Emerging Climate Strategy‚ The International Spectator‚ Vol. 46‚ No. 2‚ June 2011‚ pp. 127–141 2. Sharma‚ A. (2009) Implementing Balance Scorecard for Performance Measurement‚ The Icfai University 10 Journal of Business Strategy‚ Vol. VI‚ No. 1‚ p. 11 3. Sorooshian‚ S (2014) Study on Unbalanceness of the Balanced Scorecard‚ Faculty of Industrial Management‚ University Malaysia Pahang‚ Malaysia‚ Applied Mathematical Sciences‚ Vol. 8‚ 2014‚ no. 84‚ 4163 – 4169
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FCFC Assignment Questions 1. Will the BSC program at First Commonwealth provide Board members with the information they need to fulfill their governance responsibilities? Does a board really need information beyond the results reported in a company’s monthly‚ quarterly and annual financial reports? To engage board member’s expertise much more around the strategic direction that the company is taking would require giving different types of information to board and having different discussions
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“Boston Lyric Opera” case‚ the first documented application of the Balanced Scorecard to an arts organization‚ was written to illustrate the application of the Balanced Scorecard to a nonprofit organization‚ especially one whose performance some people believe can not be quantified and measured. The case provides the history of the arts organization and describes its prior strategic planning process. It shows how developing the scorecard‚ a logical corollary of the BLO’s planning process‚ served to align
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cycle time Minimize product waste/ defects Number of wasted/defective products Reduce delivery time Order delivery time 3 Comment on the scorecard development process. Why did Bob McCool initiate yet another initiative‚ the Balanced Scorecard project ? What elements seem critical to the success of a Balanced Scorecard project? Balanced Scorecard at Mobil was a very successful program for its intended purpose‚ it helped managers and employees assimilate into a major reorganization. The reason
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Futura employs 230 personnel. Futura holds a position in several markets to include original equipment manufacturer‚ floor covering trims‚ electronics‚ transportation‚ shower door‚ marine store fixture and retail. Balanced Scorecard (BSC) “Most companies use the balanced scorecard (BSC) to focus on the financial aspects or the operational metrics required by ISO quality certification. But that is not all one unique company uses the BSC for. At Futura Industries‚ President Susan Johnson built
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Nov. 2011 Intellectual Property of the Centre for Outsourcing Research and Education (CORE). May be used with permission of CORE. Agenda – Service Levels for BPO Preliminary Matters Use of Weighting Factors Use of Severity Levels Use of the Balanced Scorecard CORE: Nov. 2011 Service Level Agreements 2 Preliminary Matters for All BPOs Precisely define the services to be provided (the “Services”) Since not practical to measure performance for all Services‚ carefully identify which of the Services
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