balanced scorecard part i

Required Reading:

http://www.netmba.com/accounting/mgmt/balanced-scorecard/

http://www.quickmba.com/accounting/mgmt/balanced-scorecard/

See: strategy implementation using the four perspectives of the balanced scorecard

Read the lecture material “Required Information on Metrics” posted in this week’s module.

Alternative: This Power Point presentation also explains the balanced scorecard

Assignment (6%): Part I. Create a Balanced Scorecard analysis

The Learning Goals for this assignment are:

10. Strategic management of financial capital: You can plan, evaluate and manage the financial implications of the organization’s global operations.

9. Strategic management of human capital: You can acquire, develop, retain and deploy global talent to create and maintain strategic and competitive value.

8. Strategic management of operations: You can evaluate operations, systems and processes and make recommendations to optimize performance of the organization.

3. Quantitative reasoning: You can use mathematical information, operations and quantitative analyses to solve problems and inform decision-making.

2. Critical thinking and analysis: You can apply logical processes to formulate clear, defensible ideas based on the analysis of facts and ethical considerations.

1. Communication: You can communicate clearly, both orally and in writing.

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INSTRUCTIONS:

Your task is to create a Balanced Scorecard for the head of the unit of the organization for which you work, or have worked. Unless you are in senior management, focus on the unit with which you are most familiar rather than the organization as a whole. Your first step is to identify the strategic objectives of the entire organization and the secondary objectives for the unit. The next step is to specify the major factors to be tracked for strategy implementation using the four perspectives of the balanced scorecard: learning and growth perspective, business process perspective, customer perspective, and financial perspective.

1 . Write a paper describing the strategic objectives of the entire organization and the secondary objectives for the unit. For the unit, develop three specific objectives within each of the four perspectives of the Balanced Scorecard. Explain the specific information needed to calculate each metric of the Scorecard, the specific actions that need to be taken to achieve the target, and how each will support the strategic objectives of your organization.

2. Create a table showing the quantified target metrics, formatted as in the below example.

Format for the paper. The paper should be no more than 15 pages, including the metrics table and the references. Include :

  • A meaningful report title
  • A short executive summary with all key results and recommendations
  • A short introduction with report purpose and contents
  • Section headings helpful to the reader
  • Conclusions with key points repeated from the report body
  • References list in APA format
  • Page numbers on all pages

Submit the paper into the assignment folder by the due date.

When you submit your paper, your work will be evaluated using the competencies listed below. You can use the list below to self-check your work before submission.

  • 1.1 Organize document clearly in a manner that promotes understanding and meets the requirements of the assignment
  • 1.2 Develop coherent paragraphs or points so that each is internally unified and so that each functions as a part of the whole document
  • 1.3: Provide sufficient, correctly cited support that substantiates the writer’s ideas.
  • 1.4: Tailor communications to the audience.
  • 1.5: Use sentence structure appropriate to the task, message and audience.
  • 1.6: Follow conventions of Standard Written English.
  • 1.7: Create neat and professional looking documents appropriate to the project or presentation.
  • 2.1 Identify and clearly explain the issue, question or problem under critical consideration.
  • 2.3. Evaluate the information in a logical and organized manner to determine its value and relevance to the problem.
  • 3.1 Identify numerical or mathematical information that is relevant in a problem or situation.
  • 3.4. Employ software applications and analytical tools to analyze, visualize and present data to inform decision-making.
  • 8.1. Evaluate major business/organizational systems and processes and make recommendations for improvement.
  • 9.1. Design organizational structure, systems and processes that support the strategic goals of the organization.
  • 10.1 Apply relevant microeconomic principles to support strategic decisions for the organization.
  • 10.3. Determine optimal financial decisions in pursuit of an organization’s goals.

Complete the remainder of the week’s assignment in the discussion area.

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Example Metrics Table

Develop three specific objectives within each of the four perspectives for the unit. Each objective should have at least one quantified target metric associated with it. So your table should contain 4 perspectives, each with 3 specific objectives, and a target value of the metric for each objective.

If you would like to see a sample table of metrics, here is one example:

Sample Table of Metrics for an Example Business Unit

Perspective

Objective

Metric

Target Value

Financial

Revenue Growth

Operating Profit Growth

Short-term Solvency

Long-term Solvency

Annual Rate of Growth

% EBIT/Sales

Current Ratio

Long-term Debt/Equity

> 6%

> 7%

> 2.0

< 30%

Customer

Increase Number of Customers

Maintaining Transaction Size

Improve Customer Satisfaction

Annual rate of Customers Increase

Average Transaction Size

Median Score: Customer Survey

> 5%

> $600

> 90%

Internal

Product Improvement

Ratio of New to Old Products

Maintain Market Share

% R&D Expense to Revenue

Ratio of New to Old Products

Market Share %

> 4%

> 8%

> 24%

Learning

Employee Training

Employee Turnover

Employee Compensation

Annual Hours of Employee Training

Employee Turnover

Average Compensation