Balanced scorecard evaluation Essay Example | Topics and Well Written Essays - 2000 words

Balanced notice evaluation - Essay suitIt should be able to in a good perplex to predict the future consummation of the makeup, and/or control and manage the organizations strategic plan. A balanced scorecard is one of shell management styles that capture this information in details. This paper gives an analysis of the purposes for non-financial surgery measures. It also analyses the current procedure measure adopted in Atlantic Tele-Network, Inc (ATN), the extend to which their performance measure captures the Kaplan and Nortons balanced scorecard and its present strength and weaknesses. Purposes for non-financial performance measure Kaplan and Norton (1996) state that by analyzing the non-financial perspectives of an organization, managers are in a position to translate the strategy of an organization into actionable objectives. It also enables them to get an insight of how the strategic plan of the organization is being executed. According to Kaplan and Norton (1992), a ba lanced scorecard (BSC) maps the strategic objectives of an organization into performance metrics. This is done in four perspectives namely learning and harvest-tide, customers, financial and interior processes. The four perspectives of a balanced scorecard provide important feedback that explains how well the companys strategic plan is being executed. From this feedback, managers are able to range necessary adjustments that can be made to ensure that the company achieves its outlined goals and objectives. BSC is a financial and non-financial performance measurement tool. This means that apart from measuring the current performance of a company in monetary value of finances, a BSC as evaluates the efforts of a firm to make future improvements using customer, process and learning and gain metrics (Niven 2006). As noted in the above discussion, the three major perspectives that make up the non-financial performance measures/BSC of a company are learning and growth, customers and i nternal processes. According to Kaplan and Norton (2004), an analysis of the objectives of an organizations internal processes helps the management of an organization to understand and choose type of process that are very important for agreeable its shareholders and most importantly, its customers. Basically, this performance measure outlines the main processes which an organization must focus its efforts for it to excel. An analysis of the learning and growth perspective of a BSC enables an organization to understand how it must learn, improve and innovate for it to achieve its objectives. A substantive portion of this perspective is employee-centered. Some of the learning and growth measures will include manufacturing learning, time to market and crossing focus Douglas (2007). The customer perspective of a BSC enables an organization to understand how it is being viewed by its customers. It also enables it to go to sleep how well it is doing in terms of serving its target cus tomers in an effort to meet its financial objectives. The main objectives here will be those that focus on new products, how to become a preferred supplier, change state a responsive supplier and customer partnerships. Generally, a BSC enables a company to translate its vision into hardheaded goals and adjust its strategy accordingly to the feedback and the learning received. The