Advanced Management Accounting: Balanced Scorecard and its Application in NHS Trust

Advanced Management
Accounting

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Balanced Score card and how it may be used for performance management within
organisations:...............................................................................................................................3
How BSC approach be applied within NHS trust to assess and control organisation
performance:................................................................................................................................5
Critically analysing strengths and weaknesses of balanced score card:......................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Advanced managerial accounting consists of various aspects which enable management to think
analytically and deal with different contingent circumstances. Balance scorecard is major
element of advance managerial accounting which help management to take busines decisions
effectively and mange business’s performance (Chong, Ong, Abdullah and Choo, 2019). The
study based on case study of NHS which is a trust having 4 hospitals and consists of discussion
regarding how balance scorecard will help NHS to measure as well as control trust performance.
Further the study discusses about advantages and disadvantages relating to use of balance
scorecard.
MAIN BODY
Balanced Score card and how it may be used for performance management within organisations:
The term balanced scorecard stems from the principle of focusing at strategic metrics, in
comparison to basic financial metrics, in order to achieve more balanced views of results. The
idea of concept balanced scorecard has developed from the mere use of viewpoints and is
now holistic strategy management framework. The primary advantage of having a disciplined
structure is that this allows organisations a chance to "link dots" among the various elements of
tactical planning including management, ensuring that there'll be a tangible correlation between
the tasks and activities that individuals are focused on the metrics utilized to track
progress and strategic goals that the organisation is seeking to attain. This was initially presented
as paper by Robert Kaplan with David Norton in year 1992. And later, legally, as a publication in
1996. That both journal and book have contributed to its mainstream popularity (Asiaei and
Bontis, 2019). It is important to recognize that while Kaplan with Norton published their first
article, they were unprecedentedly alluded to in work of Art Schneiderman, whom was presumed
to be balanced scorecard creator. Balanced scorecard framework promotes positive behaviour in
the enterprise by separating four different fields which have to be analysed. Such four fields, also
known as legs, include learning and growths, business's processes, consumers and finances.
Balanced scorecard technique is being used to accomplish the goals, metrics, strategies and
priorities that arise from such four main market functions. Companies will quickly define issues
that impede market success and prioritize planned improvements that can be monitored by
potential scorecards. The scorecard can provide details on the business as whole when reviewing