Benefits Of A Balanced Scorecard Essay

Benefits Of A Balanced Scorecard Essay

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There are many reasons for Worldclass to continue the use of its balanced scorecard. On their organizational scorecards, the focus was on the customer perspective, which includes such indicators as customer satisfaction and net promotor score (an annual customer satisfaction measure of percent of sales, marketing, customer care and product quality of the organization). Since a typical analysis of the company would not provide non-financial data such as data pertaining to how they are doing in regards to customer satisfaction, continued use of the balanced scorecard is essential to monitor this activity. On their scorecard, they have sections for deliveries, complaints, market share, brand index and surveys, all of which have high plan rates (such as percentages in the 90s out of 100%). If these factors were not periodically checked, Worldclass would not be able to improve since they would not know how they are doing. This is the same for all of the other non-financial items on the balanced scorecard because an income statement or balance sheet cannot provide this data. According to NetMBA, a balanced scorecard can help managers better translate the organization’s strategy into actionable objectives and better measure how well the strategic plan is executing. If Worldclass discontinues the use of their balanced scorecard, they could potentially lose this advantage of measuring how well their plan is doing.
The properties of performance measure that were implicated in the implementation of the balanced scorecard and Worldclass Lighting were their Key Performance Indicators (KPIs), which included the financial perspective, customer perspective, process perspective and learning and growth perspective. Worldclass created a few d...

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Balance scorecard can be improved with education and training, changes in organizational design, changes in administrative policies and procedures. By educating and implementing training programs, it can help overcome cultural barriers and develop cross-functional teamwork. When changes in an organizational design occurs, it can help to eliminate stovepipes and open up lines of communication across functions and groups. When an organization makes changes to administrative policies and procedures, they can tie individual measurement and rewards more closely to overall company goals, to help people focus more on helping the company as a whole to reach its goals. Once a company has come out with a balanced scorecard, there needs to have proper monitoring in place to ensure that everyone is invested in the company and its goals.

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