Introduction:
recent organizations now realizing the importance of measuring their performance, this typically translate the management quote that “measure it, manage it”; also they are realizing that, the measures of performance should be used for long term instead of the short term, and to consider non-financial aspects as organizational as the financial ones (Kaplan & Norton, 2000).
So, performance measures should be a crucial and integral component of effective management, since it works as a navigator to ensure that the organization is performing according to its planned objectives, and the actual performance is according to the planned one, this is generally known as a “strategic planning”.
Linking BSC to Strategic planning
Balanced
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So, BSC is a comprehensive methodology for strategic planning; it is considered the best tool because it enables organization to measure financial and nonfinancial aspects of the performance.
BSC passed through different stages until it became a comprehensive strategic planning tool and integrated with the organizational performance in 1997. In 1992 the BSC was just a tool-kit of performance measurement, and then it evolved to be only as a system to manage organizational performance (Kaplan & Norton, 2001).
BSC as a strategic planning approach is consisting of nine main steps, they are:
1- Strategic analysis
2- Developing strategy
3- Determining the strategic
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- # of targeted results.
- $ of saving, expenses, revenue, etc…
3- Targets: it shows the preferable (desired) results the organization willing to achieve in the future.
4- Initiatives: are the actions to be taken to achieve the strategic objectives
Strategic [planning at Antony’s Orchard (AO)
Antony’s Orchard is a family-owned entity dealing with apple products for more than 60 years. It has gone through a tremendous growth periods as well as difficult periods during its operating life.
AO experienced the factors those can participate in its success as reported in an interview with its CEO Fob Frost “We have always enjoyed a geographical advantage, so, Orchards are located in some of the best regions in the world for growing apples” Fob
Since the beginning of time, companies are striving and working very hard, under a lot of stress, in order to survive and overcome the challenges they face day in and day out. For Managers, it can become even more challenging to execute tasks or make the most effective decisions for their teams as the competition increases. It requires the development of excellent business strategies and effective operations to deliver exceptional products and services. An original framework created by Drs. Robert Kaplan (Harvard Business School) and David Norton has helped managers and executives achieve a more 'balanced' view of organizational performance with the Balanced Scorecard. “The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.”
Tapinos, E., Dyson, R.G. & Meadows, M. (2005). The impact of performance measurement in strategic planning. International Journal of Productivity and Performance Management, 54(5/6), 370-384.
In the mid 1980s, and into the 1990s, business leaders realized that a renewed focus on quality was required to continue to compete in an expanding global market. (NIST, 2010) Consequently, several strategic frameworks were developed for managing, and measuring organizational performance. Among them were the Malcomb Baldrige National Quality Award, which was created by and act of congress and signed into law by the President in 1987, and The Balanced Scorecard, which is a performance management tool that was born out of research conducted in the late 1980s and early 1990s by Robert S. Kaplan, and David P. Norton published in 1996 (Kaplan, 1996). Initially the renewed emphasis on quality management systems was a reaction to the LEAN approach
Kaufman, Roger. Strategic Planning Plus: An Organizational Guide. Sage Publications, Inc.: Newbury Park, California, 1992.
It identifies an organization’s philosophy, mission, vision, goals, and measures with which they will assess performance (Kelly & Tazbir, 2014). Furthermore, it explains the organization’s plan for attaining goals and details how an organization will shift direction to meet new goals as well as allows the organization anticipate what their future needs will be (Fry & Baum, ). Through various strategic planning methods such as as the Stengths Weakness Opportunities Threats (SWOT) assessment, community and stakeholder assessments, focus groups, advisory boards, literature reviews, surveys, and interviews organizations obtain the insight necessary to develop and realize their plan (Kelly & Tazbir,
During the business unit strategic planning process, there are a series of steps, which if implemented and managed correctly, should lead to success (Kotler et al. 2013). With success being measured by the ability to meet the customer needs, wants and demands
Performance management is a management tool used to value, monitor and measure a company’s strategies that ensure the efficiency and effectiveness of its product delivery. This management tool does not focus on the organisation and on its employees as well as stakeholders. It is a continuous process that entails that managers make sure that organisational and employee values are corresponding (Aguinis, 2005,p.1/2-1/5). Performance Management brings about the competencies in the employees, increases self-esteem by giving feedback to employees, there is a low number of lawsuits because it helps understand the company better (eThekwini Municipality, 2008,p.10-11). According to Pride, Hughes and Kapoor (2011, p.288) performance management creates motivation for employees; one theory of motivation is of Expectancy, which stipulates that employees satisfaction is driven by expectations of what an organisation will offer in return.
The Boston Consulting Group (BCG) Matrix is used by organisations to analyse whether their performance is either high or low, and indicate their market growth or position on the market, which is similar to the product life cycle, of the introductory, growth, maturity and decline stages. Stars – represent high market growth and high market share, and are leaders in the business world. The organisation would require a substantial amount of money to maintain its high market share; they are also cash users and generators. They are the main units in an organisation and this shows where the company should invest its money, as it is expected that stars become cash cows and they are to generate a positive cash flow. Question Marks – represents low market share and high market growth, at this stage the organisation will invest an enormous amount of cash and also incur losses.
Goal Setting. In my organization for goal setting we follow the SMART method. SMART stands for S-Specific, M-Measurable, A-Achievable, R-Realistic and T-Timely.
Strategic management is a disciplined effort or control to make necessary decisions that have an effect on a business or an organization; the aim of strategic management is mainly to develop new, innovative or diverse ideas and opportunities for potential or development, and facilitates or assists an organization to achieve its goals (SM, 2010). In reality, strategic management not only can be used or applied to determine mission, vision and values or objectives, but it also establishes roles and responsibilities or timelines in a business (David, 2009). In the following sections, this study will focus on and examine the nature of strategy formulation, implementation, and evaluation activities, and analyze the potential pitfalls or risks in using a strategic-management approach to decision making.
Apple Inc. was established by Steve Jobs and Steve Wozniak on April 1, 1976 as a computer designer, developer and seller company. However, the company shifted its focus from only personal computer to include other consumer electronics such as portable media player and mobile phone in 2007. Apple Inc becomes one of the most popular makers in its field since it seems that its popularity has increased according to a report on www.statista.com that Apple Inc’s products sales was generally increasing throughout the first quarter of 2006 to the first quarter of 2014. On the one hand, it has increased its revenue from about 14 billion US dollars to more than 170 billion US dollars in 2013. All in all, the company is highly successful corresponding to its products’ development and their sales growth in world’s market.
Success is the result of very long travel to objective but in right drection and right speed. Every successful person or entity knows how much effort is required and sometimes a minor slip can throw you miles away but that would be a big tragedy. However here we are talking about Apple that has achieved success through ingenuity and decades of hard work.
Introduction Performance management is the process of establishing a favorable working environment for a given organization such that every employee will have the ability to work at their level best to achieve the organizations goals and objectives. This process basically involves developing clear job description, acquisition of proper work force, providing appropriate training of employees and designing equitable compensation plans along promoting career development for the employees. Managing performance in any given corporate body is one of the most important contributions that managers should put into consideration. Setting up goals, laying down objectives and strategizing on appropriate methods to achieve such goals are the main essentials
When implementing a new performance management system in an organization there are both advantages and disadvantages that need to be taken into consideration by the design team. However, one of the best ways to know if a performance management system is effective is by implementing the system within the organization and then continuously monitor and reevaluate if the system is still relevant to the organizational
Gagne, K. (2002). Using performance management to support an organization's strategic business plan. Employment Relations Today, 28(4), 53-59. Online learning, and teaching in higher education [ebrary Reader version] Retrieved from http//.site.ebrary.com/lib/ashford/Doc?id=108932710