Monica Hubler: Discussion Board 4
17 September 2013
The balanced scorecard is a “performance metric used in strategic management to identify and improve various internal functions and their resulting external outcomes” (Balanced Scorecard 2013). The balanced scorecard attempts to help managers plan, control, and execute company goals by providing feedback to while implementing new strategies, goals, and objectives. The balanced scorecard is a system used by management that when implemented allows management to make their company’s vision and mission clear, shows what will be measured, and helps managers devise a plan of action to meet their goals. After the plan of action is established, they are implemented and measured through four perspectives: the customer perspective, the business process perspective, the learning and growth perspective, and the financial perspective. (Balanced Scorecard Basics 2013)
The customer perspective shows the importance of the recent trend for businesses to concentrate on customer focus and satisfaction. If a customer is unhappy with the products or services they receive from a business then they will look for a different company to purchase from. To develop measurements, managers need to focus on customer feedback in order to devise strategies that improve customer experiences. This will allow the company to gain new customers and retain them for years to come. Concentration should be placed on a business’ target markets and the means by which we are providing products and services to these customers. (Balanced Scorecard Basics 2013)
The business process perspective, as it implies, pertains to the inside procedures of a company. Measurements based on internal procedures allow managers to see if their products are meeting customer standards as well as examine how efficient the company’s operations are. Obviously,...