Learning Growth Perspective
Balanced Scorecard
Futura Industries
Balanced Scorecard
The success or failure of any business entity is greatly dependent on how well align its goals and management systems are with its strategic plans. There have been cases reported where businesses failed to make it big despite of having excellent strategic plans. This was because they failed to keep their management systems and activities in line with their strategic plans. While management in itself is a small term, it covers various dimensions of business activity that include both internal and external influences. These include management of business processes, financial management, customer satisfaction, human resource management and the internal and external communications pertaining to the business. All these management aspects must be integrated into a well balanced management system such that it keeps the overall business activity in line with the strategic plans of the business. Many businesses get on the road to decline only because they fail to keep their business activities in line with their strategic plans.
A good way to ensure the alignment of management activities with strategic plans is to use the Balanced Scorecard system. A balanced scorecard is a matrix that works on four perspectives, which are amalgamated together to form a balanced management...
Balance Scorecard for Fatura Business organizations operate with the sole objective of effectively utilizing the input factors in order to maximize on the output. For this case, output is measured in terms of performance, which, essentially relates to the profits or customer satisfaction. In the industrial age, most managers relied heavily on conventional financial metrics as the only strategic measure to align the activities of the organization to the goals and
Futura Industries The balanced scorecard approach is a framework for building a better organization. It relies on the organization placing emphasis on four different perspectives, with the theory being that if the organization excels at these four perspectives it will achieve success. The dimensions are customer, financial, internal business processes and learning & growth. At Futura, Susan Johnson chose to focus most of the company's effort on the learning and growth
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
Futura Industries implemented the Balanced Scorecard approach and its apparent effects At some companies, the Balanced Scorecard approach is solely used to improve the company's financial 'bottom line' and to set benchmarks for financial performance. However, the innovative organization Futura Industries has taken a different approach. The company sent benchmarks for success in three specific quadrants: "customer service, financial, and internal operations," resulting in "50% increase in revenue without adding
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