Verified Document

Balanced Scorecard And The Financial Perspective Capstone Project

¶ … high-quality healthcare services to families with children suffering from a broad range of developmental disabilities is a challenging enterprise in any setting, but the constraints to productivity faced by Cattaraugus County ReHabilitation Center were daunting indeed. The Center had grown to include a number of organizations that provide specialized care to disabled children, but it had outgrown its old business model when a Balanced Scorecard initiative was implemented. This paper examines the Center's efforts to determine if the job they did in implementing a balanced scorecard approach was effective in reflecting its organizational mission and vision. A summary of the research and an overall evaluation of the Center's efforts are provided in the conclusion. Review and Analysis

The balanced scorecard approach developed by Kaplan and Norton (1992) is intended to provide managers with quantifiable performance metrics that link outcome measures with measures reflecting future outcome drivers (Martello, Watson & Fischer, 2008). According to Martello et al., the balanced scorecard approach provides a framework for organizing strategic objectives into four perspectives: (a) financial (the strategy for growth, comparability, and risk viewed from the perspective of the shareholder); (b) customer (the strategy for creating value and differentiation from the perspective of the customer); (c) internal business processes...

75).
There are some special considerations involved in applying the balanced scorecard approach to non-profit organizations such as Cattaraugus County ReHabilitation Center. For instance, Martello et al. suggest that, "In the not-for-profit sector, the financial perspective provides a constraint rather than an objective. Not-for-profits [should] consider placing a mission objective at the top of their scorecard as the mission represents the accountability between the not-for-profit and society" (p. 70). In addition, Kaplan and Norton (1992) recommend not-for-profit organizations should "expand the definition of who their customer is" (cited in Martello et al., p. 70). An application of the four Balanced Scorecard perspectives to Cattaraugus County ReHabilitation Center efforts to evaluate their effectiveness is provided in Table 2 below.

Table 2

Application of the four Balanced Scorecard perspectives to Cattaraugus County ReHabilitation Center

Perspective

Summary

Application to Cattaraugus County ReHabilitation Center (CCRC)

Financial

This is the strategy for growth, comparability, and risk viewed from the…

Sources used in this document:
References

Kaplan, R. & Norton, D. (1992). The balanced scorecard -- measures that drive performance.

Harvard Business Review, 70(1): 71-79.

Martello, M., Watson, J., Fischer, M., (2008). Implementing a balanced scorecard in a not-for-

profit organization. Journal of Business & Economics Research. 6(9), 67-80. Retrieved
from: http://journals.cluteonline.com/index.php/JBER/article/view/2471/2517.
Cite this Document:
Copy Bibliography Citation

Related Documents

Balanced Scorecard Blogger Balanced Scorecard Financial Perspective...
Words: 392 Length: 1 Document Type: Essay

Balanced Scorecard Blogger Balanced Scorecard Financial Perspective Customer Perpsective MEASURES MEASURES Don't drag Costs Ease of use Complaint/question rate Contribute Cash flow, profit margin Innovation Percentage of users adopting new features Rate of additional feature additions Generate Percentage of parent's total revenue Integration Reported problems adding additional non-Google components Reported problems with Google components Frequency of use with various applications Internal Business Pers. Innovation/Learning MEASURES MEASURES Increased crossover Rate of adoption of other google products by Blogger Usability focus Customer feedback Rate of Blogger adoption by users of other products Continuous in-house testing and review Ad embedding Click rate for Google-placed ads Marketing

Tesco BSC Tesco Balanced Scorecard Financial Perspective
Words: 912 Length: 3 Document Type: Essay

TESCO BSC Tesco Balanced Scorecard FINANCIAL PERSPECTIVE MEASURES MEASURES Growth Market share More stores, more locations Sales volume Online sales volume Profitability ROCE measures Variety Product channels Costs/profit margins Affordability Price comparisons Security Debt reduction INTERNAL Business PERSPECTIVE LEARNING/INNVATION PERSPECTIVE MEASURES MEASURES Integrity Cultural consistency Development Training expenditures Middle-management promotion levels Consistency Staff retention Reporting regularity Diversification Changes in department outputs Explanation and Justification of Proposed Measures From the financial perspective, the company has set itself goals of continued and even stronger growth, and profitability is also specifically mentioned by the CEO in his review of the company's 2011 annual report (Tesco, 2012). Likewise,

Balanced Scorecard: Customer Perspective the Balanced Scorecard
Words: 580 Length: 2 Document Type: Essay

Balanced Scorecard: Customer Perspective The balanced scorecard (BSC) developed by Robert Kaplan and David Norton is "one of the most highly touted management tools today" (Gumbus, A. & Lussier, R. 2006), and is used extensively by Fortune 1000 companies to "set strategy and align operations to achieve breakthrough results" (Gumbus, A. & Lussier, R. 2006). Is the balanced scorecard a tool only for the multinational or conglomerate firm? Increasingly no, as

Balanced Scorecard Financial Market Share -- Gain
Words: 479 Length: 2 Document Type: Essay

Balanced Scorecard Financial Market share -- gain fifty percent of the local market share within a three-year period. Profitability -- break even within the first two years of operations and earn a $20,000 profit by the beginning of the fourth year. Competitive Position -- establish the business as the "hometown" alternative of choice for premium coffee beverages and related goods through full participation in community events such as softball teams or fundraisers. Customer retention or

Balanced Scorecard Control and Adjustment of Environmental
Words: 1671 Length: 6 Document Type: Essay

Balanced Scorecard Control and Adjustment of Environmental Factors for a New Bookstore: The Balanced Scorecard Perspective All businesses, whether they are brand new and still in the planning stages or have been around for generations, must continually reappraise their position in their given market and industry in order to ensure that they are providing their shareholders and all stakeholders with the maximum possible benefit for their involvement with the business. Simply put,

Overview: What Is the Balanced Scorecard
Words: 3528 Length: 12 Document Type: Term Paper

Balanced Scorecard Analysis: Starbucks What is the balanced scorecard? The balanced scorecard is a method of conveying value to an organization through the use of performance measurement tools. "The balanced scorecard has evolved from its early use as a simple performance measurement framework to a full strategic planning and management system. The 'new' balanced scorecard transforms an organization's strategic plan from an attractive but passive document into the 'marching orders' for the

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now