Balanced Scorecards (BSC) are designed to provide insights into which customer-centric strategies are the most profitable and scalable over the long-term (Glykas, Valiris, 2011). Often customer-centric measures of satisfaction, sales and repurchase rates hide the real issues of customer profitability, lifetime customer value and cost to serve the most loyal customers (Kaplan, 2005). A balanced scorecard must take into account the entire value chain of a business if it is going to be successful and capture those most profitability activities first, not just seek to gain customers' satisfaction levels alone (Jayashree, Hussain, 2011).
The measurements as defined by Niven are not customer-centric, they are centered on how companies connect with their prospects and customers. There is a major difference in truly customer-centric measures of performance and those that seek to measure the value of the messaging produced. Niven is speaking of unique value propositions (UVP) that are unquantifiable by nature, and they are not customer-centric. Organizations strive to make their UVPs very customer-focused, yet often they only convey part of the message.
A more effective series of metrics is defined by Kaplan, specifically evaluating the metrics that capture lifetime customer value and the costs to...
Balanced scorecard seeks to provide a sense of strategic balance to an organization by focusing on four distinct perspectives, rather than having the organization orient itself strictly to maximizing shareholder wealth (Kaplan & Norton, 1996). The underlying logic of the balanced scorecard is that there are certain congruencies between the different perspectives. By understanding these perspectives, the firm is in a position where it can optimize its performance by maximizing
Balance Scorecard Applications in Healthcare Organizations Balanced Scorecard The Learning & Growth Perspective The Business Process Perspective The Financial Perspective Strategy Mapping General Perspective of Performance Management Performance Planning Ongoing Performance Feedback Employee Input Performance Evaluation & Review Performance Management in Healthcare Organizations Healthcare Organization as Learning Organization Principles of Performance Management in Healthcare Organizations Performance Measurement & Evaluation Methods Used In Healthcare Organizations Setting Up Performance Management Systems Dimensions and Approaches to Performance Management in Health Care Taken From the British National Health Service Induction Programs Performance Monitoring Personal
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
CMBS overcomes resistance to change by concentrating on quantifying customer satisfaction by asking for ratings of each aspect of a system installation after it has been installed. This gives each member of the team a high level of ownership in the metrics being measured, and over time they improve as CMBS system integration teams become more attuned to the unmet needs of their customers purchasing systems. In this regard
Balanced Scorecard Analysis of Peel Memorial Hospital Using the case analysis of The Balanced Scorecard-solution at Peel Memorial Hospital (Harber, 1998), this paper illustrates how performance management can directly affect the success of an organization in meeting its goals and mission. A brief analysis of the case is first presented, followed by the identification of major issues involving both the organization and the individuals involved. This analysis continues with an identification
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
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