Sample Essay on Business Scorecard

Introduction

According to Carson and Dent (2007), a balanced score is critical for motivation in business. A balanced scorecard is an imperative aspect of management systems that facilitate organizational clarification of visions and strategies as well as translating them into actions. The feedback leads to continued improvement of the external outcomes and the processes that take place internally. The internal processes perspective is critical in satisfying the needs of the customers and encounter the financial goals of the organization. The firm must maximize and concentrate on the internal processes as they play a significant role in pushing the business towards success.

The mission of the business is delivering products and services that suit consumer needs.

The vision is to leading the leaders in household-based products and solutions.

Internal processes perspective

Objectives
Excellent operations strategy
  • The company aims to ensuring that operational costs and cycle time are minimized- the cost of production will be minimized by adopting quality materials at affordable prices. Cost-effectiveness will be prioritized and profit maximization properly calculated.
  • Ensure high standards of excellence and delivery duration- a ready-to-deliver department will be set up. The department will be furnished with the necessary delivering mechanisms that are required for effective operations.
  • Maximize on the supply chain- this will done by cutting the channels of supply. Products will be delivered to the wholesaler’s doorstep. Moreover, the market share and venturing into a new market.
Customer intimacy strategy

The customer evaluates an organization in terms of time, quality, and levels of performance as well as cost rates. Thus the objectives in customer strategies should effective embrace this. Examples of customer strategy objectives include:

  • Establish customer interaction management frameworks.
  • Customer support services
Product leadership strategy
  • Develop new products -The organization aims at realizing a 15% in sales of new products.
  • Improve the speed of penetration to the market- the products ordered by a client should be delivered within the first two hour after the order is made. This is with the exception of otherwise agreed with the customer.
  • Innovate existent products- the firm will improve the existing goods so as to fit the needs of the existing market and make them better than the products in the market. This will go a long way in projecting product leadership in the market. For example, the flavors of our household products will be increased to allow our customers a variety to choose from.
  • Decrease the defect rate- this is significant in increasing customer value as it improves the quality of the products.

The balanced scorecard is important in translating the organizational strategies into parameters that can be measured. This is because the strategies can be effectively communicated to the stakeholders in the firm.  Moreover, the personal goals are easily aligned with the company’s strategic goals. The BSC appreciates that the set measures impact the behaviors of the workers. Thus, the response of the implementation processes results in strategic planning processes.

For the BSC to be effective, the strategy adopted should be well-defined.  This is coupled with appreciating the strategic goals and metrics. The incorporation of the balanced scorecard is likely to fail if it is not well-defined before implementation.

It is worth noting that the objectives are interrelated in this perspective. For example, the innovation objective poses a challenge due to the technological aspect involved. This affects the learning level (Norton & Kaplan, 1992). The value the innovation will add to the consumer is also evaluated by the engineers working on the innovation.

References

Carson, P. A., & Dent, N. J. (2007). Good clinical, laboratory and manufacturing practices: Techniques for the QA professional. Cambridge: RSC Publ.

Kaplan, R. & Norton, D. (1992). The balanced Scorecard_ Measures that Drive Performance.   Harvard Business Review. Accessed at: