Management Accounting for Decision Making

This article discusses the balance scorecard of Macmillan Support Cancer from financial, internal processes, customer, and knowledge & growth perspectives. It also explains the justifications behind each measure and how it can help the organization achieve its objectives. The article includes references and is relevant for students studying management accounting for decision making.

MANAGEMENT
ACCOUNTING FOR
DECISION MAKING

TABLE OF CONTENTS
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Balance scorecard of Macmillan Support Cancer............................................................................1
Explaining the justifications...................................................................................................2
REFERENCES................................................................................................................................8

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1
Balance
scorecard of
Macmillan
Support
Cancer
Financial Perspective
 Raising 11% fund to provide more assistance
to achieve higher efficiency in order provide
more advance treatment
 Generating 5% income sources from donation
and social events for promoting people's good
life.
 Increasing 7% efficiency of optimum
utilization of resources as per budget to have
higher sustainability in turn adopt changing
circumstances.
 Attaining 3% growth via investing in
technological utilized for inclining
effectiveness
 Reducing cancer treatment related cost by 5%
at the end of month.
Internal Processes Perspective
 Increasing quality services by 4%.
 Developing innovation in services by 9% at
the end of month.
 Declining irrelevant step by 5% that delays
processing of providing cancer related help
to society.
 Launching new modern hierarchy of
communication with staff so that qualitative
guidance can be given before ending month.
 Enhancing transparency among stakeholders
within month
Customer Perspective
 Increased customers’ satisfaction regarding
services provided by 2% at the end month.
 Building good image in the eyes of targeted
people with in selected period.
 Inclining customer complaints regarding
ineffective by 7%
 Improving experience of customer by 11%
to get higher conversion rate in sector
 Getting right supplies by 12% to provide
sufficient providing to help customers
Getting right supplies by 2% to provide
sufficient providing to help customers
Knowledge & growth
 Increasing capacity and skills of employees by
9%.
 Declining staff turnover rate within month
 inclined employee satisfaction by 3% at the
end of each month
 Decreased the productivity of employees by
10%
 Developing attributes for personal
development of employees by 8% .

Explaining the justifications
Financial Perspective
 The objective of raising fund will help MCS to succeed financially so that better ability
to accomplish organizational objectives from monetary perspective can become possible.
Giving emphasis on raising 11% will assist the non-profit organization to attain its
objective of having sustainability by monitoring the performance with standard outcome
stated. This can be achieved by action strategy such as conducting circumstance to
motivate stakeholder so that appropriate level of financial resources can be obtained
(Vrontis and et.al., 2020). It promotes the challenging activities among society that
assist in having capital for functioning charity practices.
 This perspective of financial can be derived by promoting health related concern among
people so that better approach regarding goal of firm can be established. The reason
behind this specific target is reach stable financial position by having appropriate source
of income via donation, charity, etc. This will permit the Macmillan Cancer Support to
sustain in industry effectively to accomplish purpose of firm to have ability to make
propel extent of monetary assistance for reaching larger segment of audience for helping
them.
 Inclining 7% efficiency can enable the Macmillan Cancer Support to utilize its available
resources for making sure to deliver demanded services. This is basically can be
attained by action such as properly concentrating on formulation on budget according to
alternative budgetary system (Hill, 2020). The reason behind applying particular
processing is to increase efficiency in allocating, utilizing & monitoring available
resources to MCS in turn greater effectiveness can be attained. Having such proper
control on budge may aid in cooperating with changing external scenarios in turn
effectual pattern of enhancing efficiency can be derived. The shown percentage for
specific month regarding this measure will give positive outcome.
 Organizational growth via investing into technological practices is one of the crucial
factor for cancer treatment support providing charity (The Balanced Scorecard—
Measures that Drive Performance, 2021). It is suitable for the mentioned form of firm as
it will help in attaining efficiency by utilizing technological devices. This can enable the
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Macmillan Cancer Support to become able to complete targets of servicing maximum
clients for betterment of patient those who are in critical condition. This will permit the
company established for the purpose of conducting charity via attaining 3% growth in
stated subject matter for the month.
 Declination of cost is one of the essential financial measure for Macmillan Cancer
Support which is important to highlight as it will be beneficial in terms of providing
treatment to large number of audience. It can be derived by focusing on operational
practices in deeper manner so that irrelevant parts incurring cost trio firm can be
eliminated.
Internal Processes Perspectives
 The measure regarding internal procedure which is concerned with inclining quality
services by 9% can help specific organization to deliver standard outcome to meet
objective patient (Villanueva, 2018). The crucial factor behind this perspective to gain
competitiveness in sector by achieving trustworthiness among stakeholders. It can be
succeeding through identifying stage of cancer, providing suitable guidance & assistance,
supporting emotionally & financially, etc. it all will become possible for Macmillan
Cancer Support training & convening employees to treat the concerned people with
appropriate care.
 Development of innovative practices in MCS can become possible by implementing
actions like discovering needs of cancer facing people, implementing market analysis in
industry to identify prevailing updated version of techniques. These steps can assist the
firm in cooperating with changing situations of world in turn better services can be
provided. Having significant innovation practices in turn competitive advantages in
terms of differentiation, specialization, etc can be established in present working
procedure of Macmillan Cancer Support.
 Paying attention on reducing components that are creating hurdles in internal processing
so that higher effectiveness to compliance with quality measures. Eliminating aspects
that are not relevant according to the objective of organization enables firm to properly
understand the areas which require improvement for increasing qualitative aspect of
overall Macmillan Cancer Support. Reducing such factor can be exerted by feedback
mechanism, continuous internal analysis, performance evaluation, etc
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 Implementation of hierarchy regarding communication channel is associate with makings
significant flow of essential information in turn better quality while providing services by
staff can be maintained (Erawan, 2020). This measure can be useful for the mentioned
type of organization is to get capability to effectively allow the flow of information in
internal processes so that productivity can be enhanced by having appropriate knowledge
in respect to spread understand-ability.
 Internal procedure can be more effectual by creating transparency which can give more
trustworthiness among stakeholders. This particular measure is widely capable of
grabbing opportunities prevailing in industry in turn competitive advantages by
achieving support from stakeholders so that sustainability to conduct charitable activities
can be attained (Jaworska and Nadolna, 2019). It will permit Macmillan Cancer Support
to lead on the basis of higher transparent practices which can reduce cost, efforts, etc
required to accomplish objectives.
Customer Perspective
 The main objective of any organization operating as charitable trust is to achieve position
which is capable of making customers satisfied. Customers in this particular report refers
to the cancer concerned people who are seeking for assistance to deal with disease of
their life. Increased satisfaction can be derived by executing course of actions which
includes taking feedback about provided services like financial, mental support. In
addition to this, Macmillan Cancer Support can ask for suggestions so that goal can be
attempted.
 The criteria while evaluating options for obtaining help audience widely consider image
in brand. On the basis of this it can be justified that firm required to build good image in
society o that conducting welfare can become possible (Swapna, 2020). This can be
achieved by having significant measure for providing quality based services so that
positive result help in establishing such reputation which can as well guide in attaining
financial perspective of trust. Macmillan Cancer Support can have good reputation by
enabling its employees to be effective while dealing with stakeholders in turn better
compliance with customers’ expectations become possible.
 Inclination of challenges that are faced by customers due to inappropriate conducing of
organizational activities. This is relevant objective that can help in measuring
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performance of Macmillan Cancer Support in terms of efficiency of its services
regarding cancer treatment so that lacking areas can be identified and removed. The
strategy target of having knowledge regarding organization's lacking activities with help
of proper implementation of internal & external factors via executing several modern
techniques so that actual condition can be ascertained. It permits the charity based
organization to be prompt in removing & reducing the factors which are resulting into
hindered performance. The increased customer complaints by the mentioned figure can
largely harm performance of company which is required to be removed by applying
mentioned actions.
 Customer experience plays important role in present time weather it profit making
organization or not. This is important for the mentioned charity based firm to largely
give consideration in attaining higher level of attribute (Vrontis and et.al., 202). This can
be established by adopting strategy such as proper focus on identifying elements that
are leading to this particular disease and guiding clients to decline this via adopting
certain serious tools. From this, it can be justified Macmillan Cancer Support should pay
attention on this perspective of balance scorecard. In current era, having this particular
component can allow & help in making execution of aspects that can enhance
productivity to provide higher customer satisfaction.
 There should be proper availability of resources on which Macmillan Cancer Support is
dependent for providing services to customers. In addition to this, it gives convenience to
company for deriving ability to meet market factors so that patient can be satisfied and
get appropriate treatment for living better life. There are different types of approaches
which can help the firm in achieving such as effectual supply chain management,
inventory system, etc. These will benefit not only organization but also the clients related
with MCS.
Knowledge & growth perspective
 Increasing capability & skills of staff is concerned with the ensuring that employees are
meeting the requirements of patient concerned with specified disease. It will help
Macmillan Cancer Support to adopt changing requirements according to prevailing rules
& regulations by making employees more advanced through inclining capacity & skills
of employees (Utomo, Machmuddah and Setiawanta, 2019). It can be attained by
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providing training & session, interactions with professional, etc. In modern time, trust
highly give emphasis on conducting events in turn this measure can be achieved for
having significant factor increased by 9% so that better productivity can become
possible.
 Decreasing staff turnover rate is one of the significant measure that can be useful in
having higher experienced employees for smooth functioning of firm. It can be
interpreted that it is justified to include this in particular balance scorecard so that
strategic approach to manage employees of organization so that cost reduction, higher
efficiency, experience based strategy, etc. can allow to have higher learning & growth of
employees (TRUONG, NGUYEN and DUONG, 2020). From this it can be identified
that having such approach to declining employee turnover can increase efficiency &
productivity of employees. This will provide ability to organization to capable of having
sufficient resources to comply with standard performance required to lead in industry. In
addition this, application of this action can enable firm to prompt in responding
prevailing changes with maintaining competitive advantages in terms of effective
employees.
 Decreased productivity of employees by 10% can largely impact the mentioned charity
processing so it is important for the company to give focus on removing this. It is crucial
to work on employees’ satisfaction for deriving higher potential of employees towards
accomplishment of roles & responsibilities. It is important to justified that firm need to
work on its employees’ satisfaction through focusing on learning & development
opportunity (Kaplan and McMillan, 2020). MCS will be benefited by having this factor
in balance scorecard for the specific month as it will help in concentrating on major
resources of firm irrespective nature of operating so that optimum utilization can be
exerted. It can be achieved by strategies like performance appraisal, evaluation,
feedback mechanism, etc so that better implementation & accomplishment of learning &
knowledge based objective. There are certain other actions as well that can help this
cancer based charity organization to lead in industry through having positive approach
among employees regarding firms process which can be exerted by contributing towards
motivational factor.
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 From the knowledge and growth perspective it can be analyzed that including measure
regarding developing plan for providing learning to subordinates of organization (11
Employee Development Methods, 2021). In addition to this, the particular measure
mentioned in balance score card prepared for Macmillan Cancer Support is one of the
important aspect that is required to be mentioned for having proper disclosure. This can
be achieved by implementing several courses in effectual ways so that better
understanding & ability is gained by subordinates. It can be exerted by having
significant coaching, training, simulation programs, etc so that higher level of expertise
for personal development can be attained.
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REFERENCES
Books and Journals
Erawan, I. G. A., 2020. Implementation of Balanced Scorecard in Indonesian Government
Institutions: A Systematic Literature Review. JPAS (Journal of Public
Administration Studies). 4(2). pp.64-71..
Hill, J., 2020. Environmental, Social, and Governance (ESG) investing: A balanced analysis of
the theory and practice of a sustainable portfolio. Academic Press.
Jaworska, E. and Nadolna, B., 2019. Balanced Scorecard for Selected Confectionery Companies
Listed on the Warsaw Stock Exchange in Poland. RESEARCH FOR RURAL
DEVELOPMENT, 2.
Kaplan, R. S. and McMillan, D., 2020. Updating the balanced scorecard for triple bottom line
strategies. Harvard Business School Accounting & Management Unit Working
Paper, (21-028).
Saidin, A. and et.al., 2017. Formulating A Performance Measurement System using Balanced
Score Card in Islamic Philanthropy Institutions. In SHS Web of Conferences (Vol.
36, p. 00023). EDP Sciences.
Swapna, A. J., 2020. Financial Statement Analysis of a Non Profit Organization.
TRUONG, D. D., NGUYEN, H. and DUONG, T. Q. L., 2020. Factors influencing balanced
scorecard application in evaluating the performance of tourist firms. The Journal
of Asian Finance, Economics, and Business. 7(5). pp.217-224.
Utomo, S. D., Machmuddah, Z. and Setiawanta, Y., 2019. Balanced scorecard: Learning and
growth perspective. Jurnal Inovasi Ekonomi 4(02). pp.55-66.
Villanueva, E., 2018. Decolonizing wealth: Indigenous wisdom to heal divides and restore
balance. Berrett-Koehler Publishers.
Vrontis, D. and et.al., 2020. Cause-related marketing in international business: what works and what
does not?. International Marketing Review
Online
11 Employee Development Methods. 2021. [online]. Available through:
<https://www.valamis.com/hub/employee-development-methods>
The Balanced Scorecard—Measures that Drive Performance. 2021. [online]. Available through:
<https://hbr.org/1992/01/the-balanced-scorecard-measures-that-drive-
performance-2>
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