Genesis Energy Capital Plan Report

Strategic measurement “scorecard” that incorporates the financial measures applied in this course.

A strategic measurement scorecard is a system used by companies to monitor their progress regarding the different departments and the goals they had set. In this example, a financial scorecard will include (Kaplan, 2012).

a) Interest of Shareholders

In the interest of the shareholders to get a system of monitoring the companies/businesses progress regarding their returns to the shareholders, it is important first to indicate the previous share that they received. The targeted amount so that each numerical value is measured against this amounts to tell whether it attains the targeted amount or not.

b) Financial objectives

In the financial objectives part, the objectives of the company should be indicated along with the targeted amounts to indicate these objectives. The future results will indicate whether the business has attained these objectives.

c) Financial Perspective

Financial perspective, the financial perspective of a company can be approached through different strategies. These are product leadership strategy, customer value strategy, and operational excellence strategy. These perspectives can then be interpreted regarding their revenue generation or output to gauge their progress.

Revenue growth from each of these strategies can be achieved through. Increasing the sources of revenue, enhance the profitability of the existing sources of revenue, decreasing the cost incurred in the current processes and the optimization of resources (BSC, 2016).

New equity owners introduce more funding for your company or business and the funding is intended for the projects of the company. New equity partners help the business avoid getting financing from banks; that is more expensive. This provides the company with a better chance of making a profit. The right equity owners can introduce valuable skills and experience adding to the company’s arsenal of skills and resources. These new equity owners may be ready to provide the business with follow-up funding if the company attains their standards.

Non-financial measures that should be considered and are essential to the success of an organization. And why these actions should also be taken into account in the strategic initiatives of the organization.

Management of human resources

This refers to the staff side of a company, monitoring of the staff of a business ensures that the company does not run into industrial action that stops production and causes the company to go at a loss.

Product and Service quality

Monitoring the quality of the products that are being produced ensures that the quality is maintained constantly, or is forever being improved. This is crucial for a company to keeping its current customer pool, enhance the quality of the product can help the company attract more customers.

Brand awareness

Developing a company brand may not be a financial measure but ones the company has developed a brand and curved out their pool of clients; these customers tend to remain with the company no matter what other companies do.

References

Kaplan Financial Knowledge Bank.(2012). Non-financial performance indicators. Retrieved

From: http://kfknowledgebank.kaplan.co.uk

BSC Designer.(2016).A financial perspective of the balanced scorecard. Retrieved from: http://www.bscdesigner.com/financial-perspective.htm