There are a couple of different tools that can be used to gain information for
managers to make more effective decisions. One of these tools commonly used is
called the balanced scorecard. By measuring four parameters, a performance,
including “financial, internal operations, innovation and learning, and customer
perspectives”, managers can take past performance and use it with the balance
scorecard to set up new goals and performance measures that could be
beneficial to the company (Romney, 2020). If we take and expand on one
element of the balance scorecard, the financial parameter. Sets a goal for an
organization, who needs to satisfy the demands and interests of stakeholders,
shareholders, and other decision-makers. However, there may be times where a
balance scorecard is not the best option. Example of this may be where a
company is generating daily reports for their daily operations that will be use
frequently and effectively. In this case, a balance scorecard may be too much of a
Birdseye view.
Using graphing tools can help management and CEOs determine the goals of the
company’s present and future. Graphing is an effective tool to explain analysis of
the company’s financial needs, process data, present to clients. There are column
charts, line graphs, pie charts all can be used as effective ways to communicate
to clients and employees. Comparing sets of complex data is sometimes very
bulky and hard to understand. Graphs and charts are utilized to show the data in
a clear manner that makes the data easier to analyze. Think about how much
easier it is to visually show a data trend to an audience. In the chart below, the
line represents a change in stock prices. This chart clearly shows the decrease in
price in a way that is easy to understand without ever even looking at the actual
numbers. One glance at the chart shows that the price has shown a significant
decrease over time. (Study,n.d) I know in the business I work in line graphs work
well for letting us know how far we come in one project compared to other
projects we work on.
References:
Romney, M. B., Steinbart, P. J., Summers, S. L., & Wood, D. A. (2020).
Accounting Information Systems. Pearson
Study.com | Take Online Courses. Earn College Credit. Research Schools,
Degrees & Careers. (n.d.). https://study.com/learn/lesson/charts-graphs-
uses-examples.html
