Strategic Management Report: Kaplan and Norton's Balanced Scorecard

This report provides a comprehensive analysis of the Balanced Scorecard approach, a strategic management tool developed by Kaplan and David P. Norton. The report examines how the Balanced Scorecard helps organizations measure and improve their performance across various internal functions, including financial, customer, internal processes, and learning and growth perspectives. It discusses the importance of clear communication of business strategies to employees, as well as the development of a strategic map that aligns with the Balanced Scorecard framework. The report highlights the benefits of the Balanced Scorecard in terms of better decision-making, improved strategic planning, and enhanced shareholder value. Examples, such as a financial organization's use of the 4 Ps (process, people, profit, and portfolio) and mobile strategy maps, are used to illustrate the practical application of the Balanced Scorecard. The conclusion emphasizes the Balanced Scorecard's essential role in setting organizational goals. The report references key academic sources, including works by Shen, Chen, and Wang (2016), and Valmohammadi and Ahmadi (2015), to support its analysis.

Strategic
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
CONCLUSION ...............................................................................................................................2
REFERENCES ...............................................................................................................................3

INTRODUCTION
Balanced scorecard approach is the process or strategic map which helps organisation to
measure performance level. Present case is based on Kaplan and David P. Norton.
MAIN BODY
Explaining and discussing the Balanced Scorecard Approach as outlined by Kaplan and Norton
in their articles.
Balanced score card approach is the performance metric used in strategic management. It
helps to identify and improve various internal functions of a business (Shen, Chen and Wang,
2016). This process also helps in better decision making approach. As per the case or strategy of
Kaplan and David P. Norton, under which they planning to make a trip with their employees.
The main concern of business strategies is to communicate their employees in proper manner
without any miscommunication. All team members should be briefed by all areas of necessary
places to implement business strategy. Overall, this cleared that best implementing the plan will
give better results through company enhance their Balanced Scorecard. Moreover, it will help to
understand the better planning growth for the company. They developed balanced scorecard
which enables business to measure the actual position level in terms of customers, financial,
internal process as well as learning and growth. Moreover, it is the kind of map that gives
knowledge and learning to employees that help to innovate new strategic growth. It also helps to
give better performance level and high shareholder value. Since 1992, when Kaplan and David
P. Norton introduced this concept, they both worked with many organisations in equally private
and public sectors. Under this Kaplan and David P. Norton found and noticed certain patterns
and have brought them into a common visual framework. The main purpose of the balanced
scorecard is to develop their own strategies map which is based on balanced scorecard
(Valmohammadi and Ahmadi, 2015). Balanced scorecard is the template which shows company
distinct regions such as financial, customer, internal process and learning plus growth areas.
According to Kaplan and David P. Norton, balanced scorecard approach defines the best
effective growth making strategic map which covers the scorecard of all distinct regions in the
organisation. Moreover, it covers the best possible approach to identify the actual requirement
and growth. More apart, it is the long-term process of making good task oriented process. For
example, a financial organisation identified the 4 Ps in their own balanced scorecard such as
process, people, profit and portfolio. Through this balanced scorecard, company can easily
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measure their own performance level and take corrective action plan. This is the common
statement which communicates general overall plan for implementing the strategic planning
process. Another example of balanced scorecard is mobile strategy map, this helps to make
understand by the manager to take corrective action plan. This explained the overall process of
making good performance who learned from balanced scorecard strategical map. in terms of
purchasing transaction (Valmohammadi and Ahmadi, 2015). Apart from that, it will also explain
the more important process to identify the company strategic position. Overall, balanced
scorecard is the required process for the organisation which helps in identifying the different
important aspects of the company.
CONCLUSION
From the above discussion, it can be concluded that balanced score card is the essential
process of making good goals for the organisation suggested by Kaplan and David P. Norton.
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REFERENCES
Books and Journals
Shen, Y. C., Chen, P. S. and Wang, C. H., 2016. A study of enterprise resource planning (ERP)
system performance measurement using the quantitative balanced scorecard
approach. Computers in Industry. 75. pp.127-139.
Valmohammadi, C. and Ahmadi, M., 2015. The impact of knowledge management practices on
organizational performance: A balanced scorecard approach. Journal of Enterprise
Information Management. 28(1). pp.131-159.
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