CAN TACTICS OF BSC BOOST ORGANISATIONAL PERFORMANCE?

1234Research Scholar, Department of Commerce, Aligarh Muslim University, Aligarh.

1 2 3Belaleidhlayel Irbihat , Modafarnayelhwashel Alhroob , Aisarayednahar Albashabsheh4

and Sarfaraz Javed

theories based on thesis, research paper, magazine and all possible secondary sources. On the basis of the slew of literature researcher drawn conclusion of the paper.

Balance Score Card, Perspectives of BSC, Performance measurement.

The Balanced Scorecard is a strategic performance management framework that has been designed to help an organisation monitor its performance and manage the execution of its strategy. Neely et al. (2002) defines performance measurement and performance measurement system. Performance measurement is the process of quantifying the efficiency and effectiveness of past action. A performance measurement system enables informed decisions to be made and actions to be taken be-cause it quantifies the efficiency and effectiveness of past actions through the acquisition, collation, sorting, analysis and interpretation of appropriate data.

Through the years, the Balanced Scorecard has evolved, from the performance measurement tool originally introduced by Kaplan and Norton (1992), to a tool for implementing strategies Kaplan and Norton, (1996) and a framework for determining the alignment of organization‘s human, information and organization capital with its strategy Kaplan and Norton, (2004).Khan & Javed, (2016)Farooq & Hussain, (2011)by now, the Balanced Scorecard's universal appeal as a management approach is well established. BSC provides a visual framework that integrates the organization's strategic objectives across these four perspectivesKhan, Baseer, & Javed, (2017).

KEY WORDS:

INTRODUCTION:

ABSTRACT Balanced scorecard scoring system helps

organizations to streamline vision and strategy with business activit ies and measures actual organizational performance against presentgoals. In this paper researcher try to accomplish its objectives formulated as; To In-depth study of the concept Balance score card, its different viewpoints, and benefit of strategic planning. To draw out conclusion based on the relevant literature. With the intention of attending these objective researcher go through all the possible relevant

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OBJECTIVES OF THE STUDY

DIFFERENT VIEW POINT OF BALANCED SCORECARD

The Financial Perspective:

The Customer Perspective:

The Internal Process Perspective:

The Learning and Growth Perspective:

This study cover-up this following objective:1) To In-depth study of the concept Balance score card, its different viewpoints, benefit of strategic planning.2) To draw out conclusion based on the relevant literature.

Here are the definition for the four Balanced Scorecard perspectivesPujas, (2010);ALAO, (2013): This viewpoint consist financial related objectives of organisation and permit to

management to follow up the financial success and stakeholder value.This viewpoint consist and focus on customer objectives like ultimately

customer will be satisfied. Market share objectives also services and product qualities and attributes In this type of view point, it consist internal operational goals and

highlight the key processes necessary to achieve the customer objectives. It consist intangible assets of coming success such as human

resource capital, information capital comprising skills, training, organisational culture, leadership, systems and databases.

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Figure 1: Balance Scorecard perspectives

CAUSE-AND-EFFECT LOGICConveying the correct execution in the one viewpoint (e.g. money related achievement) must be

accomplished by conveying the goals in alternate viewpoints (e.g. conveying what clients need). You fundamentally make a guide of interlinked goals. For instance (Anand, Sahay, & Saha, 2005): ­The objectives in the Learning and Growth Perspective (e.g. developing the right competencies) underpin the objectives in the Internal Process Perspective (e.g. delivering high quality business processes).­The objectives in the Internal Process Perspective (e.g. delivering high quality business processes) underpin the objectives in the Customer Perspectives (e.g. gaining market share and repeat business).­Delivering the customer objectives should then lead to the achievement of the financial objectives in the Financial Perspective.

Strategy maps in this way layout what an associations needs to achieve and how it arrangements to finish. This circumstances and end results rationale is a standout amongst the most essential components of best-practice Balanced Scorecards. It permits organizations to make a really incorporated arrangement of

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Table 1: View point of Balanced Scorecard and Strategic matrices

Viewpoint Strategic Objectives Strategic matrices

Financial perspective Increase the revenues F1: revenue gap with reference to the

projected revenues

F2: profit gap wtth reference to the

projected cost and revenues

F3: profit margin

Fulfil monetary

Restrictions

F4: cash situation

F5: solvency ratio

Customer perspective Increase the market

Share

C1: % of increase inMarket share (increase

inSales company/increase

Total market sales)

Control the relative

Position of the company

C2: funds salesIncrease/funds increase

Under management in theMarket

Increase number of

Clients

C3: subscriptionsreimbursements

C4: total volume fundsManaged/nº

investors

Increase in the direct

Negociation

C5: volume of the fund’sPortfolio obtained

byDirect negotiation/totalVolume managed

in thePortfolio

Internal process

perspective

Innovation process

(increase the firm’s

Competitively)

I1: new funds on pipeline

I2: average lead timeUntil the launching

ofThe new fund

Improve the operative

Process

I3: nº of investors’Complaints in a

Period/total nº ofInvestors

I4: measure of theFastness of the global

Information given to theClient (days

Funds control risk Modified duration

Learning and

Growth Perspective

Improve the salesmen

And portfolio

Managers effort

G1: employee satisfaction(statistical

surveys)

G2: commercial effort: nºNew clients/nº

salesmen

G3: portfolio managersEffort: nº new

funds/nºPortfolio managers

Success of a

newDistribution

channelThrough internet

G4: productivity of theInternet channel

G5: degree of satisfactionWith the

internetEmployees

(Colomina et al., 2003)

key destinations on a solitary pageColomina et al., (2003);Murby & Gould, (2005).

The Balanced Scorecard gives an intense system to building and conveying technique. The plan of action is pictured in a Strategy Map which powers administrators to consider circumstances and end results connections. The way toward making a Strategy Map guarantees that accord is come to over an arrangement of interrelated key goals. It implies that execution results and in addition key empowering agents or drivers of future execution, (for example, the intangibles) are distinguished to make an entire picture of the system Jordão & Casas Novas, 2013);Shutibhinyo, (2014).

The way that the methodology with all its interrelated destinations is mapped on one bit of paper permits organizations to effortlessly impart system inside and remotely. We have known for quite a while that words generally can't do a picture justice. This 'arrangement on a page' offices the comprehension of the procedure and connects with staff and outer partners in the conveyance and audit of methodology. At last it is difficult to execute a technique that is not comprehended by everyone.

The Balanced Scorecard approach powers associations to configuration key execution pointers for their different vital targets. This guarantees organizations are measuring what really matters. Explore demonstrates that organizations with a BSC approach tend to report higher quality administration data and increase expanding profits by the way this data is utilized to guide administration and basic leadership.

organizations utilizing a Balanced Scorecard approach tend to deliver preferred execution reports over associations without such an organized way to deal with execution administration. Expanding necessities and prerequisites for straightforwardness can be met if organizations make significant administration reports and dashboards to impart execution both inside and remotely.

associations with a Balanced Scorecard can better adjust their association to the key goals. Keeping in mind the end goal to execute an arrangement well, associations need to guarantee that all business and bolster units are working towards similar objectives. Falling the Balanced Scorecard into those units will accomplish that and connect system to operations.

all around actualized Balanced Scorecards additionally help to adjust hierarchical procedures, for example, planning, chance administration and investigation with the vital needs. This will make a really technique centered association.

In order to help companies with selection process, Bernard Marr of Cranfield University has led study consisting more than 70 companies over 3 years. Data from companies arranged and used theoretical sampling techniques with the objective to develop a selection process framework that could be applicable across different organisations (Kaplan, 2010).Interview was done with more than 25 senior members of consulting firms, like including Accenture, Cap Gemini, Ernst & Young, KPMG and Gartner. Each had experience of scorecard implementation and software selection. In addition, more than 45 members of software companies specialising in providing balanced scorecard and performance management software were interviewed. Cranfield’s team identified ten points that each organisation should consider when looking for the right software to use with a balanced scorecard Murby & Gould, (2005);Molleman, (2007):

Company and product – vendor background and expertise, licence fee, maintenance fees, training and implementation costs;­Scalability of the programming, how the database works;

STRATEGIC PLANNING

1. Improved Strategy Communication & Execution -

2. Better Management Information -

3. Improved Performance Reporting -

4. Better Strategic Alignment -

5. Better Organisational Alignment -

SOFTWARE IN SCORECARD DEVELOPMENT AND APPLICATION

­

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­Flexibility and customisation of methodology and approaches;­Features and functions – security and access control, exception alerting, collaboration and reporting;­Communication – web-based,commenting, email integration;­Technical specifications – technical requirements, integration with existing infrastructure and databases;­User interface/data presentation –information display and strategy maps;­Analysis functionality – analysis capabilities, statistical functionality, forecasting;­Service – levels of service, implementation support, technical support; and­Future – developments and release frequency of the product, future compatibility.

The idea of the Balanced Scorecard is straightforward however to a great degree effective if executed well. For whatever length of time that utilize the key thoughts of the Balance score card to (a) make a one of a kind technique and imagine it in a circumstances and end results delineate, adjust the association and its procedures to the targets distinguished in the vital guide, (c) outline significant key execution markers and (d) utilize them to encourage learning and enhanced basic leadership you will wind up with an effective instrument that ought to prompt to better execution.

1. Alao, e. (2013). Strategic decision making , balanced scorecard profitability?: issues and challenges. International Journal of Accounting Research, 1(1), 20–31.2. Anand, M., Sahay, B. S., & Saha, S. (2005). Balanced Scorecard in Indian Companies. Vikalpa, 30(2), 11–25. Http://doi.org/10.2139/ssrn.6292493. Colomina, M., Clara, I., Grande, U., Martín, S., Javier, F., Muñoz Colomina, C. I., & Urquía Grande, E. (2003). A proposal on how to apply the balanced scorecard to the collective investment managerial firms, 1–25. Retrieved from http://eprints.ucm.es/6806/1/0306.pdf4. Farooq, A., & Hussain, Z. (2011). Balanced Scorecard Perspective on Change and Performance?: a Study of Selected Indian, (2008), 37–48. Http://doi.org/10.20460/JGSM.20115157965. Jordão, R. V. D., & Casas Novas, J. L. (2013). A study on the use of the balanced scorecard for strategy implementation in a large Brazilian mixed economy company. Journal of Technology Management and Innovation, 8(3), 98–107. Http://doi.org/10.4067/S0718-272420130004000096. Kaplan, R. S. (2010). Conceptual Foundations of the Balanced Scorecard. Harvard Business School, 1–36. Http://doi.org/10.1016/S1751-3243(07)03003-97. Kaplan, R. S. And Norton, D. P. (1996), The Balanced Scorecard: Translating strategy into action, Harvard8. Kaplan, R. S. And Norton, D. P. (2004), Strategy Maps: Converting Intangible Assets into Tangible Outcome, Harvard Business School Press, and Boston9. Kaplan, R.S. and Norton, D.P. (1992), The balanced scorecard – measures that drive Performance, Harvard Business Review, 70(1), pp.172- 180.10. Khan, A., & Javed, S. (2016). Determining Factors Responsible in Shifting Consumption of Mobile Data ( 2G to 3G ), 155(14), 30–33.11. Khan, A., Baseer, S., & Javed, S. (2017). International Journal of Advanced and Applied Sciences Perception of students on usage of mobile data by K-mean clustering algorithm, 4(2), 17–21.12. Molleman, B. (2007). The challenge of implementing the Balanced Scorecard. 6th Twente Student Conference on IT. Cerca Con ….13. Murby, L. (Cima), & Gould, S. (Cima). (2005). Effective Performance Management with the Balanced Scorecard-Technical Report. Cima, 8–19.

CONCLUSION

REFERENCES

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14. Neely, A., Adams, C., Kennerley, M. (2002), the Performance Prism: The Scorecard for Measuring and Managing Business Success, Financial Times Prentice Hall, London.15. Pujas, D. (2010). Barriers to the Successful Implementation of the Balanced Scorecard - the Case of Plava Laguna J . S . C ., (January), 89. Retrieved from https://www.modul.ac.at/uploads/files/Theses/Master /Thesis-2010-Pujas-Dragan.pdf16. Shutibhinyo, W. (2014). Usage?: Indirect Correlation Through, 8(4), 17–24.

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