Running Head: BALANCED SCORECARD 1BALANCED SCORECARD 7 Balanced Scorecard Kerry Bolander March 4th, 2016 Balanced Scorecard The balanced scorecard is a strategic planning as well as management system that is widely used in business and industry and nonprofit companies for the importance of aligning business activities to the vision and strategy of the organization in order to improve internal and external communications as well as monitor organization performance against strategic goals. Balanced scorecard has been developed from its early use whereby it was considered as a simple performance measurement framework, to a full strategic planning and management system (Ferreira & Lima, 2010). The present balanced scorecard has a significant impact in an organization whereby it transforms its strategic plan from passive document to ‘marching orders’ for the organization each day. It offers a business framework that offers performance measures. It is also of significance to business planners in identifying what should be done as well as measured. It is also of importance to executives as it helps them to truly execute their strategies. I will analyze the various components that make up an effective balanced scorecard of an organization. It also develops a communication plan for the strategic objectives of an organization. The perspectives of a balanced scorecard The balanced scorecard retains traditional financial measures. However, financial measures narrate the story of past events, which offers information for age companies for which long-term investments capabilities and customer relationships were not critical for success. Nevertheless, the financial measures are considered inadequate to offer a guidance and evaluation to the journey that information age organizations must come up with for the importance of creating future value via investment in customers, employees, suppliers, technology, innovation and processes. Balanced scorecard is made up of four significant perspectives and they include financial perspective, customer value perspective, the business process perspective and lastly the learning and growth perspective. The financial perspective Timely as well as accurate funding data will often be a priority t every organization, and therefore, managers will do what is required in order to provide it. Indeed, mostly there is more than adequate handling as well as processing of financial information within any given organization. With the creation of a corporate database, there are hopes that more of the processing can be centralized and automated. However, the main view in this illustration is that the present emphasis on financial causes the ‘unbalanced’ situation on concern to other perspectives. Therefore, there is necessity of including additional financial-related information such as risk assessment and cost-benefit data in this perspective. The significant objective of financ ...

1. Running Head: BALANCED SCORECARD
1BALANCED SCORECARD
7
Balanced Scorecard
Kerry Bolander
March 4th, 2016
Balanced Scorecard
The balanced scorecard is a strategic planning as well as
management system that is widely used in business and industry
and nonprofit companies for the importance of aligning business
activities to the vision and strategy of the organization in order
to improve internal and external communications as well as
monitor organization performance against strategic goals.

2. Balanced scorecard has been developed from its early use
whereby it was considered as a simple performance
measurement framework, to a full strategic planning and
management system (Ferreira & Lima, 2010). The present
balanced scorecard has a significant impact in an organization
whereby it transforms its strategic plan from passive document
to ‘marching orders’ for the organization each day. It offers a
business framework that offers performance measures. It is also
of significance to business planners in identifying what should
be done as well as measured. It is also of importance to
executives as it helps them to truly execute their strategies. I
will analyze the various components that make up an effective
balanced scorecard of an organization. It also develops a
communication plan for the strategic objectives of an
organization.
The perspectives of a balanced scorecard
The balanced scorecard retains traditional financial measures.
However, financial measures narrate the story of past events,
which offers information for age companies for which long-term
investments capabilities and customer relationships were not
critical for success. Nevertheless, the financial measures are
considered inadequate to offer a guidance and evaluation to the
journey that information age organizations must come up with
for the importance of creating future value via investment in
customers, employees, suppliers, technology, innovation and
processes. Balanced scorecard is made up of four significant
perspectives and they include financial perspective, customer
value perspective, the business process perspective and lastly
the learning and growth perspective.
The financial perspective
Timely as well as accurate funding data will often be a
priority t every organization, and therefore, managers will do
what is required in order to provide it. Indeed, mostly there is
more than adequate handling as well as processing of financial
information within any given organization. With the creation of
a corporate database, there are hopes that more of the

3. processing can be centralized and automated. However, the
main view in this illustration is that the present emphasis on
financial causes the ‘unbalanced’ situation on concern to other
perspectives. Therefore, there is necessity of including
additional financial-related information such as risk assessment
and cost-benefit data in this perspective. The significant
objective of finance function in an organization is to achieve
three benefits and they include business support service, lowest
cost and effective control of the business environment. Money
is considered the lifeblood of a business while finance is the
nerve center. The importance of finance in an organization is to
promote a business, develop products; gain assets advertise and
run market.
The customer perspective
From recent business management philosophy, there has been
an increasing realization of the significance of customer focus
as well as customer satisfaction in an organization. If customers
are not satisfied, they will finally run up for another supplier
that will meet their needs. Therefore, if this perspective
demonstrates a poor performance, which shows a leading
indicator of organization decline and failure in the future
despite the current financial picture looking good. Every
organization should recognize that customers are the most
important people that help the organization run effectively.
They are the resource of organizational success in which every
business depends upon. Therefore, if they are treated with no
satisfaction and in poor manner, the business eventually fails
(Chris, 2012). In implementing metrics for satisfaction, there is
necessity of analyzing customers in regards to the type of
clients and the type of processes for which the organization is
providing a product or even a service to those particular
customers.
The business process perspective
This category includes an internal business process in an
organization. Some of the aspects of this perspective include
performance measurement. This allows room for improvement

4. of the bottom line through reduction of process cost and
improving productivity as well as mission effectiveness.
Performance measurement allows manages to identify best
practices within their organizations and thus expand their usage
in other tasks that will improve the success of the organization
(Valmohammadi & Servati, 2011). Metrics under the business
process perspective permits the mangers to recognize how well
their business is working out and whether its services and the
involved products conform, the requirements asked and needed
by customers, which includes the organizational mission. There
is significance of those who recognize better these processes to
design these metrics carefully. with the organization’s unique
missions, these are not issues that can be developed by outside
consultants as they will not work according to the required
aspects due to lack of enough knowledge concerning the
organization.
The learning and growth perspective
This is a perspective, which includes the training of
employees and corporate cultural attitudes associated with both
corporate self-improvement and individual. In a knowledge-
worker organization, people, knowledge repository, are
considered the fundamental resource in this case. In the current
environment made up of rapid technological development, it is
becoming of importance for knowledge workers to involve
themselves in a continuous learning condition. Metrics can be
designed into place for the significance of guiding managers in
placing their focus on training funds where they can be of
significance to most. In any given situation, learning and
growth within an organization is made up of the essential
foundation for success of any knowledge-worker organization.
The implementers of balanced scorecard put their emphasis that
‘learning’ is more than just ‘training’, that is, it also includes
various aspects such as mentors and tutors within the
organization. This ease communication among employees,
which in turn allows them to readily solve various problems

5. wherever necessary. This also includes technological equipment
that brings about success within an organizational performance.
Communication plan
Both people and organizations communicate with others for
various reasons. However, the main purpose of communication
within an organization is to bring its departments together for
the purpose of reaching the targeted goals accomplishing its
mission. According to Potter (2001), planning communication is
a way of organizing actions that will lead to the fulfillment of a
goal. In this case, the organizational goal raises awareness
concerning its initiative’s long-term benefits to its customers.
In order to create a framework for success, organizational
managers should map the present situation in terms of
communication. They should ensure alignment with their
organization’s business by understanding where it currently
stands and where it is heading to.
One of the significant approaches in determining the present
situation is performing a SWOT analysis of the organization.
This rates the strengths, weaknesses, opportunities and threats,
which the organization faces in consideration of external and
internal factors. Therefore, managers should undertake a
communication audit in order to check out which activities
within the organization are more effective. They should deliver
clear recommendations concerning the manner in which
improvements should be made on the existing channels and
make better investments with the available budget. The
managers should take to the key stakeholders of the
organization. This should be done through setting up interviews
with internal customers for the importance of learning what
their priorities are. Having an excellent knowledge of business
issues offers managers with opportunity of providing effective
solutions and highlights their consultative value as a function.
References
Chris Adalikwu, (2012). Customer relationship management and
customer satisfaction. Afr. J. Bus. Manage., 6(22).

6. Ferreira, V., & Lima Júnior, R. (2010). Balanced Scorecard.
RCCC, 9(26), 9-25.
Guerra-López, I., & Hutchinson, A. (2013). Measurable and
Continuous Performance Improvement: The Development of a
Performance Measurement, Management, and Improvement
System. Performance Improvement Quarterly, 26(2), 159-173.
Potter, L. (2001). The communication plan. San Francisco, CA:
International Association of Business Communicators.
Valmohammadi, C., & Servati, A. (2011). Performance
measurement system implementation using Balanced Scorecard
and statistical methods. Int J Productivity & Perf Mgmt, 60(5),
493-511.