Developing a Balanced Scorecard for Great Persons, Inc. (GPI)

This assignment develops a balanced scorecard for Great Persons, Inc. (GPI) and critically evaluates the applicability of balanced scorecard across the range of industries. It also includes a proposed balanced scorecard, stakeholder analysis, and critical success factors.

Running head: GREAT PERSONS, INC.
Financial and Performance Management
[Great Persons, Inc. (GPI)]
Name of the student:
Name of the university:
Author note:

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Executive summary
The main purpose of this assignment is to develop a balanced scorecard for the case study
company GPI. The case study company seems to have some problems related to its different
business aspects like customer service, employee engagement, financial management and
strategic information systems management. While doing the development of the balanced
scorecard this study also critically evaluates the applicability of balanced scorecard across the
range of industries.

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Table of Contents
1. Introduction..................................................................................................................................3
Question 1:.......................................................................................................................................3
2. A critical evaluation of Kaplan and Norton’s Balanced Scorecard as a Strategic Management
System and its application to the organization in the case study.....................................................3
A critical evaluation:....................................................................................................................3
Application:.................................................................................................................................5
Application of the BSC on GPI:..............................................................................................6
Question 2:.......................................................................................................................................7
3. Developing a proposed balanced scorecard:................................................................................7
Vision, mission and strategic objectives:.....................................................................................8
Stakeholder Analysis:..................................................................................................................9
Critical Success Factors:..............................................................................................................9
Balanced Scorecard:..................................................................................................................12
4. Conclusion.................................................................................................................................16
References......................................................................................................................................17

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1. Introduction
The main purpose of this assignment is to develop a balanced scorecard for the case study
organisation Great Persons, Inc. (GPI). It is a not-for-profit organisation aimed to serve various
areas such as helping the community where they operate and providing needful services to them.
The case study organisation is facing some challenges, which is stopping them to fulfill their
mission and vision strategy. In fact, few of its members do not even have their practices aligned
to the business objective. To them, financial performance is the only objective of GPI. This is a
problem situation for the organisation considering they have multiple business objectives relating
to different areas like finance and customer service (Korableva, Kalimullina and Kurbanova
2017). The purpose of this study, which has been mentioned earlier in this section will be served
in two distinct ways. First, scholarly articles are being used to perform a critical evaluation of
Kaplan and Norton’s Balanced Scorecard. It is followed by an application of the balanced
scorecard in the case study organisation. Second, the balanced scorecard was developed for the
case study organisation. It follows a set of critical success factors (CSFs) for this designed
balanced scorecard.
Question 1:
2. A critical evaluation of Kaplan and Norton’s Balanced Scorecard as a Strategic
Management System and its application to the organization in the case study
A critical evaluation:
Kaplan and Norton's balanced scorecard provides a strategic way to plan how the
company is likely to perform in the future. The process also includes identifying the critical
success factors (CSFs) for the designed balanced scorecard. Moreover, the identification of

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critical success factors (CSFs) also gives an understanding of the problem areas. The balanced
scorecard despite being a good way to achieve balance across the various business aspects have
certain limitations. The balanced scorecard becomes problematic when implementing this to the
practice. As argued by Zhao and Li (2015), the balanced scorecard (BSC) has high rates of
implementation failure. It creates considerable variations in interpretations and practice of the
BSC. According to Harden and Upton (2016), the BSC was expected to have matured, and
become easier and productive to be applied across the organisations. However, it could not. After
three decades of existence, the concept of BSC is still criticised for its applicability across the
organisations. These criticisms explore that the applicability of BSC has limitations. At the
conceptual level, it is being criticised as well. Awadallah and Allam (2015) criticise Kaplan and
Norton for unethically owning the concept of BSC, which was actually the result of collaborative
development between an engineering and management firm, and Analog Devices management.
According to Madsen and Stenheim (2015), the balanced scorecard is very much suitable for
engineering firms; however, not so beneficial for other industries like service industries. For
example, the internal process of the BSC may not be suitable for a consulting firm yet BSC
asserts that all of its four variables or performance metrics are important. Cooper, Ezzamel and
Qu (2017) disagree with practice-oriented literature suggestions on the BSC. This literature
considers the BSC an effective tool to improve strategy awareness execution, communication
and achievement. Cooper, Ezzamel and Qu (2017) say that the BSC is more about increasing
attention to strategy rather than the BSC itself.
Dudin and Frolova (2015) identify balanced scorecard as effective in improving the
firms' performance. The evaluation of the author is based on a close observation of an electrical
firm that has implemented the balanced scorecard. The author did observe that the

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implementation of the balanced scorecard had positive impacts on sales, and net and gross profit.
Moreover, it is also being noticed that the removal of the BSC has negative impacts on sales net
profit and gross profit. Dankó and Molnár (2017) observe that the implementation of the
balanced scorecard is time intensive. The time needed to perform the balanced scorecard
implementation could be utilised to perform the assigned responsibilities. As argued by
Anjomshoae et al. (2017), the suggestions as given by Kaplan and Norton in the form of the
balanced scorecard do not meet the needs of the stakeholders. The strategic objectives and
performance measures as suggested in the balanced scorecard leave out the interest of other key
stakeholders like suppliers, the environment and the government. It rather caters the interest of
shareholders. Massingham, Massingham and Dumay (2019) criticise the balanced scorecard for
its lack of engagement and explicit involvement with the employees. This is to be noted that the
learning and growth, and internal process performance metrics are related with employees.
However, it at times does not relate to the employee support. At times, it happens that the
balanced scorecard does not appear advantageous to the employees. According to Kang et al.
(2015), balanced scorecard enables an organisation to be able to transform its strategy into other
measures like tangible measures of performance. By limiting an organisation to just the four
categories as explained in the balanced scorecard, the balanced scorecard may introduce rigidity.
Rigidity is evident in the fact that the four performance measures as evidenced in the balanced
scorecard form the foundation of the CSFs. Furthermore, there is the danger that the
organisations will lose their concerns on other than these four performance areas.
Application:
From manufacturing to construction industries, the balanced scorecard has been applied
to many sectors. The balanced scorecard was found as benefitting for the organisations dealing

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with intangible assets. However, continued research and revision of the concept widened its
applicability to a broader range of industries. For example, the balanced scorecard was applied to
a major public infrastructure project having multiple numbers of stakeholders. The project was
related to the expansion of Heathrow Airport's Terminal 5 (Lai et al. 2015). The balanced
scorecard was being used mainly because of its project managers who possessed high flexibility
for the performance metrics. The application of the balanced scorecard was successful; however,
it raised certain points of concern regarding its applicability in project management cases. The
success of a project depends on the neighborhood communities, suppliers and the environment.
However, a business organisation is different from projects in these aspects (Young 2016).
Application of the BSC on GPI:
As identified in the case study on GPI, there are a lot of problems that the organisation is
facing. First, there is no clear understanding among the organisational members regarding the
organisations’ business objectives. To many of the members, the financial performance of the
organisation is the only objective of the business. However, the senior members belonging to the
management team does not believe this way. To most of them providing support and services to
the needful people such as people with disability is the primary objective if the existence of
Great Persons, Inc. (GPI). The management does not deny the importance of financial
performance as funding is required to support and facilitate social causes. This objective can be
served by applying the balanced scorecard. One of the performance measures of the balanced
scorecard is related to “Customer Perspective”. By developing the balanced scorecard, the areas
of improvement in regards to customer perspective can be identified and treated as well by
implementing the balanced scorecard (Akkermans and Van Oorschot 2018).

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Second, the purpose that the GPI serves requires an information-based approach towards
fulfilling its business objectives. However, Great Persons, Inc. (GPI) lacks the system needed to
collect as much data as required to be able to reach to more number of the needful people. This is
also evidenced in their financial performance for fiscal years 2009 and 2010. The figure suggests
that there is minimal growth in the numbers of the needful people approached from the last year.
For example, the number of "Disabled Adults” approached in 2009 stood at 307 whereas 331 in
2010 (Secure.expertsmind.com 2019). It clearly shows that they have ineffective access to a wide
array of information to be able to reach to more people, to understand their issues and to provide
them adequate solutions. This particular task appears as achievable by using the balanced
scorecard. One of the performance metrics of the balanced scorecard is “Internal Processes
Perspective”. Internal processes include activities that are being conducted to take care of the
different organisational processes. This includes but not limited to like facilitating supplier
relationship management. Access to a wide array of information can be established by
identifying and implementing technologies that can serve the purpose. For an example, an
integrated platform in the form of customer relationship management (CRM) and sales force
automation can help to access to and store a wide array of information available through various
channels (Nyadzayo and Khajehzadeh 2016). These channels include but not limited to like
online surveys, government reports on the community development and much more. The CRM
and sales force automation can be used to access a range of data in real-time by using data
analytics.
Similarly, there are other areas that can be addressed by using and applying the balanced
scorecard. These areas include the lack of sufficient funding and the inability to serve a large
number of people with disabilities. The lack of sufficient funding is addressable with “Financial

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Perspective” of the balanced scorecard. The inability to serve more people with disabilities can
be addressed with “Customer perspective” of the balanced scorecard.
Question 2:
3. Developing a proposed balanced scorecard:
As suggested in the application section of this assignment the balanced scorecard looks
applicable to Great Persons, Inc. (GPI). The proposed balanced scorecard will follow stepwise
progress towards its development. The steps are as under (Hansen and Schaltegger 2016);
Vision, mission and strategic objectives:
Vision: “The vision statement of GPI is to provide a wide array of services for the people with
disabilities, families with childcare needs and serving all who can be benefitted from their
service”.
Mission: “Great Persons, Inc. (GPI) makes a positive difference for the people living with
disabilities, strengthening the families and enhancing the community childcare”.
Strategic Objectives:
Financial Objectives
 Increase funding
 Increase gross revenue
Customer Objectives
 Customer satisfaction
 Reach to more people with disabilities

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 Use technology like CRM and sales force automation to access to information
 Understand their needs
 Serve the community
Internal processes Objectives
 Increase access to information
 Implement CRM and sales force automation
Learning and Growth Objectives
 Employee engagement
 Train the employees
 Motivate them with rewards
Stakeholder Analysis:
The stakeholders
The stakeholders are board, staff, funders, volunteers, beneficiaries and donors.
Prioritise the stakeholders
Based on the Power/Interest Grid for prioritising between stakeholders, following
strategies to effectively utilise the stakeholders can be obtained (Elsaid, Salem and Abdul-Kader
2017);
High power, highly interested people (Manage closely): Donors
High power, less interested people (Keep satisfied): Beneficiaries
Low power, highly interested people (Keep informed): Board and Founders

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Low power, less interested people (monitor): Volunteers and Staff
Critical Success Factors:
Objectives CSFs
Financial  Increase funding - by increasing the
number of donors
 Increase gross revenue – by handling
more cases as this will help to gain the
trust of donors
Customer Objectives  Customer satisfaction - reaching to
more number of people and providing
them the needful service
 Reach to more people with disabilities
– broadening the ability to access to
large-scale information using
technology like CRM
 Use technology like CRM and sales
force automation to access to
information -
 Understand their needs – accessing a
wide array of information and using
data analytics to supply relevant
service to people with disabilities

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 Serve the community – increased
donations, increased access to
information and the use of data
analytics
Internal Processes Objectives  Increase access to information – using
technology such as CRM to collect
information from various channels
like online surveys
 Implement CRM and sales force
automation – understanding the
challenges of using CRM and sales
force automation, and taking the
expert guidance from online resources
Learning and Growth Objectives  Employee engagement – understand
what stopping them to perform,
provide them the required support and
train them to help learn the core
business objectives of the organisation
 Train the employees – communicate
the needs for training, and ensure
trainers and other resources are
available
 Motivate them with rewards – use

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employee survey to be able to know
the factors that motivate them the
most and apply many or all the
identified factors if are feasible from
the perspective of organisational
resources
Table 1: Critical Success Factors (CSFs)
(Source: As created by the author)
Balanced Scorecard:
Financial Perspective
Objectives Measurement Target Action Plan
Increase funding
The total number
of new starts every
single month
10-12 new starts
Expand advertising and
promotional reach
Increase gross
revenue
Total fund minus
spending on people
with disabilities
50%
Contact more donors
who healthy capital
Table 2: Financial Perspective
(Source: As created by the author)
Customer Perspective
Objectives Measurement Target Action Plan

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Customer
satisfaction
Reduce the number
of complaints,
increase the
number of satisfied
customers
95% satisfaction/1
complaint from
every 10 people
Create a technologically-
driven communication
system such as the use
of internet
Reach to more
people with
disabilities
Reduce the number
of disability cases
from the
community where
the business
operates
30% increment of
customers every
year
Use an integrated
platform in the form of
CRM and sales force
automation to access to
more information,
understand their needs
and supply them the
relevant services
Use technology
like CRM and
sales force
automation to
access to
information
Lead generation
and successful
conversion into
contacts
30% successful
conversion into
potential contacts
Lead management and
contact management
using sales force
automation
Understand their A higher number of 9 out of 10 people Access and understand

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needs
satisfied people
with disabilities
should be satisfied
with the services
supplied to them
the information obtained
from various channels
like online surveys
Serve the
community
A low number of
people with no
services supplied to
them
Only 1 out of 10
people should have
this concern
Provide services in
different forms like
health equipment, family
support services for
children with
disabilities, residential
services for people with
disabilities,
transportation for
children, information
and referral services,
transportation for adults
and children with
disabilities, consultation
and coordination with
affiliated agencies,
daycare resources, early
childhood programs for
children, their families

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and caregivers.
Table 3: Customer Perspective
(Source: As created by the author)
Internal Processes Perspective
Objectives Measurement Target Action Plan
Increase access to
information
Increase in the
number of leads
30% success rate
in converting leads
to potential
contacts
Increase the ability to
use data analytics to be
able to use productive
data in real-time
Implement CRM
and sales force
automation
Higher success rate
with decreasing
barriers to
implementation
Increase number of
leads and potential
contacts
Train employees to help
them become proficient
in dealing with CRM
and sales force
automation and reduce
cultural barriers
Table 4: Internal Processes Perspective
(Source: As created by the author)
Learning and Growth Perspective
Objectives Measurement Target Action Plan
Employee Increase  95% Train employees on

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engagement
productivity in
terms of customer
service and the
number of clients
approached
customer
satisfaction
rate
 30% of
people with
disabilities
every year
ways to deal with CRM
and sales force
automation, and quality
of service while dealing
with the clients
Train the
employees
Number of skills
sets being
developed
85% completed
Develop and implement
staff training
Motivate them
with rewards
Range of rewards
to be distributed
88% completed
Rewards and
recognition ceremony,
and circulating
congratulatory words
through emails
Table 5: Learning and Growth Perspective
(Source: As created by the author)
4. Conclusion
To conclude, it can be said that the balanced scorecard despite having few flaws in it is
still applicable to many firms if are supported with relevant strategies. It is being found in this
study that by applying the balanced scorecard the problem areas of Great Persons, Inc. (GPI) can
be sorted out. The developed balanced scorecard for GPI should be good guidance for GPI in

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regards to increasing their customer satisfaction rate, boosting employee engagement, increasing
the funding and improving the strategic information systems.

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