BH3604 - Managing Organisational Health | Balanced Scorecard

Running Head: MANAGING ORGANIZATIONAL HEALTH
Managing Organizational Health
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1MANAGING ORGANIZATIONAL HEALTH
The Balanced Scorecard is considered to be one of the most extensively used new
generation performance measurement methods. The first generations of the Balanced Scorecard
as a result, does the proposing of new avenues in respect of measurement methods via a planned
combination regarding financial as well as non-financial metrics having strategic propositions.
A Balanced Scorecard will be identifying the essential perspectives required for providing a
comprehensive view regarding the performance of the organization (Corbetta 2015). It will also
do the identification of the strategic goals regarding each of those perceptions as well as doing
the selection of the indicators as well as targets in respect of each of the goals. The objective of
the Balanced Scorecard is associated with the aspect of addressing the problems in relation to the
measurement of the performance regarding the organization (Anaboldi 2015). Majority of the
organizations at present are facing the challenges of taking a 360 degree view of performance
through the concentration on reporting, reviewing as well as acting in respect of a limited
number of Key Performance Indicators (KPIs) that will be impacting mostly upon the
organizational performance (Burstein 2014). A major area of study in relation to holistic
organizational performance management is considered to be the Balance Scorecard (Goble
2014). This was primarily introduced by Kaplan as well as Norton to be a better way to view the
performance of an organization.
It has been stated that majority of the companies do the adoption of a myopic short
termed as well as financially supported view regarding performance as stated in traditional
performance measures like sales, profit, return on capital employed, gross margin, return on
investment, net margin as well as residual income (Awadh 2013). By agreeing to the fact that the
financial performance of a company is an essential consideration, Kaplan and Norton also

2MANAGING ORGANIZATIONAL HEALTH
provided the argument that this narrow performance evaluation detracted from the long-term
strategic organizational development (Ferguson 2013).
It was also advocated by them that there should occur the achievement of more balance in
ways by which there occurs the viewing of performance amongst financial and non-financial
measures as well as long-term and short-term measures (Ates 2013). For achieving this balance,
Kaplan and Norton advocated that there should occur the consideration of performance from four
different perspectives such as customers, shareholders, learning and innovation as well as
internal business methods (Upadhay 2014). Regarding the customers, it can be stated in what
ways the company will perform in the eyes of consumers. In respect of learning & innovation, it
is required considering the performance necessary for ensuring the long-term organizational
growth (Lin 2013). The shareholders are concerned with the financial performance measures and
the internal business methods will be explaining in what ways the organization performs in
carrying out daily methods in an effective as well as efficient manner (Person 2013).
It is necessary to advice clients in what ways the Balance Scorecard approach will get
implemented regarding performance management as well as suggesting what Key Performance
Indicators needs to be taken into consideration in respect of the specific industry of the client
(Matthews 2015).
It needs to be noted here that the suggested scorecard will be concentrating on a finite
number of industry specific KPIs (Peters 2013).
The advantages associated with the adoption of a Balanced Scorecard approach regarding
performance management might be including the following aspects such as, creating a longer
term strategic performance view in comparison to a myopic short-term view (Tjader 2014). Also,