M5A1: Budgeting and Balanced Scorecard Discussion

M5 Assignment 1 Discussion-Balanced Scorecard

1.) Orasha Graham posted Nov 4, 2017 9:55 PM

A new approach to strategic management was developed in the early 1990's by Drs. Robert Kaplan Harvard Business School and David Norton. They named this system the balanced scorecard. It points out some of the weaknesses and vagueness of previous management approaches; the balanced scorecard approach provides a precise prescription as to what companies should measure to balance the financial perspective

The balanced scorecard is a management system not only a measurement system that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes to continuously improve strategic performance and results. When fully deployed, the balanced scorecard transforms strategic planning from an academic exercise into the nerve center of an enterprise. The Balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate account for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation.

The balanced scorecard methodology builds on some fundamental concepts of previous management ideas such as Total Quality Management, including customer-defined quality, continuous improvement, employee empowerment, and primarily measurement-based management and feedback. It calculates the major cost factors that go into performing each responsibility and reports the total cost and the percentage of your revenue that you spend on each obligation. This application allows owners and managers to assess how effective they are using their people, space, and financial resources for the activities necessary for their clinics. This expense analysis helps the owners better manage their entire practice, more confidently decide if they have to make operational changes, and more accurately determine whether they should keep activities in-house or outsource them.

Identify and discuss the types of information that would be included in a balanced scorecard that would not be readily apparent on your financial statements.

Non-financial goals, Strengths, weakness, opportunities, and threats,

How could you use the information from the balanced scorecard to improve operations and increase your division's profitability? Provide at least three specific examples.

By using the Balanced Scorecard, I can identify the factors that are hurting my business and outline a strategic change that will bring better results. By listing out my plans and how to make a future difference, giving me a better chance at redirecting my company toward success. By bringing in new customers, my product uses in the sense of am I using too much message oil, linens, towels, keep track of my customers such as return customers

Kaplan, R. S. and D. P. Norton.( 2001). Transforming the balanced scorecard from performance measurement to strategic management part I. Accounting Horizons (March): 87-104.

Assignment 1: Budgeting and Balanced Scorecard

2.) Tinieka Hooks posted Nov 4, 2017 8:42 PM

Continuing the scenario from the Modules 3 and 4 discussions consider the information provided by using a balanced scorecard.

Discuss what a balanced scorecard is and how it might benefit your company.

Answer: A balanced scorecard is a performance metric used in strategic management to identify and improve various internal functions of a business and their resulting external outcomes. It is used to measure and provide feedback to organizations. Data collection is crucial to providing quantitative results, as the information gathered is interpreted by managers and executives, and used to make better decisions for the organization.

Identify and discuss the types of information that would be included in a balanced scorecard that would not be readily apparent on your financial statements.

 

Answer: I would use this to gauge customer satisfaction.   

I would use this to ensure that the company I staff is happy with the staff that I provide

 

How could you use the information from the balanced scorecard to improve operations and increase your division's profitability?

Answer: Well I would use it to measure if I need to provide better training for the staff that I am placing.

I would also find out if the company I am staffing would like to buy out contracts to have the temp staff to become full time staff.

 

 http://www.investopedia.com/terms/b/balancedscorecard.asp#ixzz4xWM2rH3G