The Balanced Scorecard is a business strategic planning system used by management to make decisions based on information provided about the business from four different perspectives. The first of the four perspectives is the financial perspective. Which means that we evaluate our business and conduct research from the shareholders perspective. Next is the internal business perspective, which is an internal evaluation of what the business must be good at to excel. Next is the innovation and learning perspective which is an evaluation of the firm’s ability to continue to improve and create value. The final perspective is the customer perspective, which is looking at the business activities from the customers point of view. It is a bad idea to focus on anyone of these perspectives and it is generally believed that businesses that use this approach have a greater realization of success. While Norfolk Southern Corporation doesn’t necessarily use the official term balanced scorecard when making strategic decisions, I believe we cover the four perspectives currently.
The financial perspective has always been at the forefront of Norfolk Southern Corporation’s business strategy. The Norfolk Southern mission statement begins with, “NS aims to enhance the value of stockholders’ investment over time by providing quality freight transportation services…” (Norfolk Southern Corporation, 2015). This is the very first line of the mission statement. It shows us that Norfolk Southern Corporation is focused on the value of stockholder’s investment in our company. Over the last 5 years our stock value has gone from $59.47 to $104.68, almost doubling in value (Norfolk Southern Corporation (NSC), 2015). ...
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...m for improvement to claim the top position in customer satisfaction, Norfolk Southern remains among the top railways in customer satisfaction. The company has always understood that customer satisfaction is very important for the continues success of the railroad industry and our business.
While Norfolk Southern Corporation doesn’t officially subscribe to the Balanced Scorecard method, they do consider the four perspectives in their current business strategies. This can be seen in numerous examples throughout the railroading industry and internal business operations. There seems to be a balanced approach towards strategic decisions which has helped lead to Norfolk Southern’s recent success as seen by the significant increase in the stock value over the last 5 years. This balanced trend is expected to continue on for a long time as long as our success continues.
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