Performance Measurement at Great Persons, Inc.: An Application of the Balanced Scorecard

This case study analyzes the process of developing a balanced scorecard for Great Persons, Inc. (GPI), advantages and disadvantages of scorecard, and a proposed balanced scorecard to be presented to the Board of Directors at its next meeting. It also includes a strategy map for a set of CSFs in the balanced scorecard. The study provides insights into the critical role of a balanced scorecard in determining the success of an organization.

Performance Measurement at Great
Persons, Inc.: An Application of the
Balanced Scorecard
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Abstract
The current scope of analysis deals with a case study of Great Persons, Inc. (GPI) which
is a nonprofit corporation. The case analysis includes arriving at several answers to newly
developed scorecard, advantages and disadvantages of scorecard and new scorecard
development. A strategy map for balanced scorecard map is also drawn such as to depict the
connection of several CSF factors with each other.
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Table of Contents
Abstract............................................................................................................................................2
Introduction......................................................................................................................................4
1. The process that Deb Young used to develop a balanced scorecard for GPI..............................4
2. Advantages & Disadvantages of a balanced scorecard at GPI...................................................5
3. Develop a proposed balanced scorecard to be presented to the Board of Directors at its next
meeting............................................................................................................................................7
4. Diagram a strategy map for a set of CSFs in your balanced scorecard.....................................11
Conclusion.....................................................................................................................................11
Reference Lists..............................................................................................................................12
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Introduction
Great Persons, Inc. (GPI) is a not for profit organization that was set up in the year 1957.
It was established for rendering services which can meet necessities for the local community for
adults and children (Cardinaels & van Veen-Dirks, 2010). GPI use to work with other existing
agencies or by creating new agencies in order to meet needs of the service. The scope of the
current analysis includes catering to various answers to questions that has been developed.
1. The process that Deb Young used to develop a balanced scorecard for
GPI
Deb Young, the Business Director at the GPI suggested operating at appropriate funding levels
in order for the business to be successful. Deb Young being a recent MBA graduate suggested at
adopting a balanced scorecard in order to communicate objectives and goals of the organization
(Cebeci, 2009). It would allow providing diagnostic information in relation to agency operation.
It comes along with more informed and strategic type of decision making. Deb Young formed a
Committee of Representatives from each of the directorates such as to develop a balanced
scorecard. The Committee then adopted a step by step procedure for arriving at GPI scores;
Generating Perspectives and Critical Success Factors (Setting Objectives). The Committee that
was formed by Deb Young settled on developing of a balanced scorecard critical success factor
(CSFs). In order to follow this ideas from each Committee members was called out and another
Committee members was noting down such ideas on flipchart. Post brainstorming of ideas when
every member of the group had ended jotting down on ideas, new ideas was created by way of
group discussion. Then such ideas generated was evaluated through group discussion and added
to master list. Then CSF was written on posts, pasted on the wall. The Committee was divided
into two separate teams where nonverbal communication was taken place. The second team
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reviewed and revised the groupings by way of discussions of ideas. The Committee had
reviewed results in order that they could make effective revisions to the same. The perspectives
on the balanced scorecard was reviewed and revised by way of similarities in the CSFs. The aim
of the discussion was to ascertain quality of services, client satisfaction, financial viability and
efficient operations that were deemed to be critical for an organization. The Nominal Group
Technique process of GPI developed several CSFs for every perspectives. For the purpose of
greater contextual justification for CSF map, the Committee had developed a strategy map. The
strategy map depicted link of one CSF factor to another. This would allow accomplishment of
success for maintaining financial health of the organization.
2. Advantages & Disadvantages of a
balanced scorecard at GPI
Balanced Scorecard has been widely used in many organizations over the past 15 years. Of
course, these organizations have advantages. The benefits of Balanced Scorecard, and these are
also the reasons why so many organizations use the BSC. First, all aspects of balanced scorecard
require multiple goals and actions. This means that the BSC can strongly support organizational
decisions. In a competitive world, it is very important that the organization identifies the most
important things. Each BSC and target instrument are closely linked to the strategic objectives of
the organization. The organization can make strategic decisions based on the BSC. Multinational
organizations are often very numerous and need to simplify and target targets to maintain the
competitiveness of the entire organization. Otherwise, the relationship between the different
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units will diminish and the organization will eventually collapse. A balanced scorecard can offer
several advantages and disadvantages at GPI. The current discussion pertains to advantages first
and then subsequent disadvantages of a balanced scorecard.
 It offers structure to CSF methodology. Unlike money or staff management, associations
in various ways in the field of practice, there are many ways to manage strategic
management. Balanced Scorecard is a structured and organized approach to supporting
the organization association. It helps keep track of what one does, what one needs to do
and what one has to do.
 It allows ease of communication of the strategy. A strategy map must be clearly
communicated to reflect vital trends. A flawless and direct visual guide to improving the
condition of the organization goals. Since they are free from the perspectives, they give
clear targets that representatives should remember. They enable the representatives to
distinguish the most important goals. It makes it easier for the representatives to
understand the essential components required by the business.
 Customization of areas of expertise. It needs to be a technical precedent for all
departments and departments, and the Balanced Scorecard recommends this procedure.
The BSC structure allows to connect to an organization or parent company. It can also be
used to measure business processes and ways to connect to important business tasks. The
BSC also configures when many activities are shared between departments.
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 Allows representatives to implement individual goals in a hierarchical system. With a
strategy-based organizational system, the BSC enables people to form associations to
their goals. In this way, the BSC allows employees to interact with the majority of the
group and with the progress of the overall organization.
 Keep technology at the top of advertising process. The BSC is based on constantly
finding training system, and it cannot be implemented if technique does not exist. The
test and examination method is adjusted to meet the requirements of the regular monthly
physical examination. The organization can ascertain constantly at current targets.
The Balanced Score Card is not suitable for any organization in the world. It also has some
limitations. It is complicated for many companies. Organizations need to increase their
performance and scalability in relation to the BSC, and many organizations make it difficult for
their performance. If the organization is trying to accept the BSC, it must define a clear and real
relationship link between the various activities. This relationship can take years. Because of this,
it is difficult for many BSC organizations to take. Some of the organizations that do not accept
the BSC are simply simplifying.The disadvantages Of The Balanced Scorecard are as follows;
 It very well may be a brainstorming structure. BSC endeavored has to peruse each and
every contextual analysis, where organizations can get hindered rapidly.
 It cannot be duplicated absolutely from illustrations. Various consultancy organizations
propose utilizing layouts to get thoughts of what different associations utilizing the BSC
have done.
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 It requires solid authority support to be effective. BSC is a feasible alternative for current
initiative basically dislike or comprehend the structure. It becomes critical to recall that
the BSC requires an aggregate update to the manner.
 It very well may be hard to keep everybody in agreement. Numerous associations attempt
to deal with their scorecard in Excel or PowerPoint and wind up discarding it. Dealing
with a BSC in Excel can prompt exactness issues, rendition control issues, and different
complexities and designing inconveniences (Yüksel & Dağdeviren, 2010). Moreover,
while Excel is a free instrument, there are various shrouded costs. At the point when
these things happen, pioneers are probably going to see the Balanced Scorecard as the
issue rather than the device used to oversee it.
 It might show up excessively unbending for the manner in that organizations might
oversee. As opposed to setting aside opportunity to adjust, a few pioneers rapidly choose
to stop the BSC and come back to their old ways.
3. Develop a proposed balanced scorecard to be presented to the Board
of Directors at its next meeting
The balanced scorecard of the organization will be developed for all areas of services and based
on Mission statement, Vision and Values. While the mission statement aims at creating positive
difference for the people with disabilities through enhancing community childcare and
strengthening families. The vision of the organization is focused on developing broad array of
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services (Asosheh, Nalchigar & Jamporazmey, 2010). The values for the organization is focused
on stewardship, teamwork, integrity and quality.
Table 1: Financial Balanced Scorecard
Financial
“To succeed
financially, to
reflect on ways the
organization
should appear to
stakeholders”
Objectives Measures Targets Initiatives
Table 1: Customer BSC
Community
“To achieve vision
as it has been
depicted for the
community”
Objectives Measures Targets Initiatives
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Table 1: Adult Services
Adult Services
“To attain
transportation services,
health equipment
program, residential
services, employment
services, day habitation
services and multiple
sclerosis services ”
Objectives Measures Targets Initiatives
Table 1: Children Services BSC
Children Services
“To provide services to
children with disabilities,
children resources &
Referral Program, Early
ACESS Program”
Objectives Measures Targets Initiatives
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4. Diagram a strategy map for a set of CSFs in your balanced scorecard
A strategy map for a set of CSF in the balanced scorecard is depicted as below (Akkermans &
Van Oorschot, 2018)
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Financial

Table 1: Strategy Map
Conclusion
From the above analysis it can easily be understood that a balanced scorecard plays a critical role
in any organization for determining its success. Measurement of Critical success factor can
provide an extension to the measurement of CSF. therefore GPI can easily make use of balanced
scorecard to arrive at its organization’s goals.
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Reference Lists
Akkermans, H.A. and Van Oorschot, K.E., 2018. Relevance assumed: a case study of balanced
scorecard development using system dynamics. In System Dynamics (pp. 107-132). Palgrave
Macmillan, London.
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Asosheh, A., Nalchigar, S. and Jamporazmey, M., 2010. Information technology project
evaluation: An integrated data envelopment analysis and balanced scorecard approach. Expert
Systems with Applications, 37(8), pp.5931-5938.
Cardinaels, E. and van Veen-Dirks, P.M., 2010. Financial versus non-financial information: The
impact of information organization and presentation in a Balanced Scorecard. Accounting,
Organizations and Society, 35(6), pp.565-578.
Cebeci, U., 2009. Fuzzy AHP-based decision support system for selecting ERP systems in textile
industry by using balanced scorecard. Expert Systems with Applications, 36(5), pp.8900-8909.
Yüksel, İ. and Dağdeviren, M., 2010. Using the fuzzy analytic network process (ANP) for
Balanced Scorecard (BSC): A case study for a manufacturing firm. Expert Systems with
Applications, 37(2), pp.1270-1278.
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