The Balanced Scorecard Essay Example | Topics and Well Written Essays - 2000 words

The Balanced batting order - Essay ExampleWho and how it is organism promoted today, how it is being used to link employee public presentation to organizational strategy, and how successful have the companies been who have adopted the Scorecard as a capital punishment measurement and strategy implementation tool in the long-term. This study leave behind answer these questions.What you measure is what you get is an often-heard phrase, which emphasizes the importance of performance measurement to the success of an organization. Performance measurement appear be defined as the quantification of either a process output or the activities that constitute that process. An efficacious set of performance measures should have the following characteristics (a) communicate and summarize those critical activities necessary to meet customer requirements, (b) reflect outputs of processes and outcomes (how customers mensurate the outputs), (c) be comprehensive, and (d) provide feedback to t he organization (Atkinson, Waterhouse, & Wells, 1997). Selecting the proper performance measures is one of the key challenges go about management (Ittner & Larcker, 1998), yet it is perhaps the most misunderstood and difficult aspect of a management manoeuver systems (Atkinson, Waterhouse et al., 1997).Performance measures can be financial or non-financial. Financial (or traditional) performance measures are dollar value measures produced by the organizations accounting system. Examples of financial measures would include return on investment, return on equity, operating margin, unit of measurement cost, or cost variances. Non-financial performance measures are typically derived from outside the accounting system. Examples of non-financial measures include customer satisfaction measures, manufacturing cycle time, new product introductions, R&D productivity, market growth, and market share.Observers have noted that performance measurement has gained added significance, because or ganizations are faced with the twin challenges of adapting to new rules of competition and responding to the rapid changes often taking place in the marketplace (Stivers & Joyce, 2000). The factors driving this evolution are the opportunities and formidable challenges of escalating globalization, the increasing transparency of manager actions, the motivating to develop intangible assets to sustain competitive advantage, the escalating pace of technological change, an increase in competition among firms, and the raise of process change initiatives such as TQM (Malina & Selto, 2001).The right measures correctly linked to the organizations strategy gives managers and employees the guidance they acquire to act appropriately (Kaplan & Norton, 1996). This conclusion is echoed by a survey of executives indicating that performance measurement is critical in translating a business strategy into results (Lingle & Schiemann, 1996). Performance measures designed outside of the strategic plan ning process creates effectiveness for disconnect. The reason performance measurement systems fail to live up to expectations is commonly attributed to this disconnect (Atkinson, Waterhouse et al., 1997).Traditional accounting-based performance measures, with their one-dimensional focus on financial results, have been criticized as not being up to the tax faced by modern organizations. The sense is that financial performa