Balanced Scorecard Implementation: Management Accounting Report

This report analyzes a management accounting assignment focusing on the implementation of a balanced scorecard by the 2GC consultancy for an international retailer to improve its employee performance management system. The report details the reasons for adopting the balanced scorecard, highlighting its ability to provide a comprehensive overview of internal business processes and align employee roles with organizational objectives. It outlines the organizational objectives, measures, and targets, including the development of performance criteria, trial runs, and worldwide implementation. The core elements of the balanced scorecard—results, activity, and behaviors—are explained, illustrating how they contribute to a clearer employee management system. The report concludes that the balanced scorecard system effectively addresses the client organization's needs by summarizing current employee performance and setting clear standards for improvement. The balanced scorecard approach helps to evaluate employee performance and align their roles with the organization's goals.

Running head: MANAGEMENT ACCOUNTING
Management Accounting
Name of the Student:
Name of the University:
Author Note

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Table of Contents
Introduction................................................................................................................................2
Reasons for the organization developing the Balanced Scorecard............................................2
Organizational objectives, measures and targets of the Balanced Scorecard............................2
Elements of the Balanced Scorecard..........................................................................................3
Evaluation of the Balanced Scorecard system...........................................................................3
Conclusion..................................................................................................................................4
References..................................................................................................................................4

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Introduction
The issue presented in this particular study is that the consultancy firm 2GC excels in
the area of specialist strategy implementation and thought leader in the Performance
Management field. Now, 2G has been assigned with the task of redesigning the employee
performance management system of a fast-growing international retailer. The approach used
by the consultancy is the balanced scorecard approach with the perspectives of results,
activity and behaviors.
Reasons for the organization developing the Balanced Scorecard
The reason for the organization developing the balanced score card is that this will not
only help to improve the employee performance of the organization but also will provide an
overview into the internal proceedings of business and the essentialities that is ought to be
reviewed in order to improve the entire structure of employee management. The decision of
the organization to utilize the balanced scorecard system is also supported by the fact that the
triple approach area that the applied technique attempts to cover does make the entire
operational framework that each employee is responsible to follow, easier to comprehend and
simpler to execute. The performance (result perspective) of the client organization including
the non-financial aspects of it; the activity and behavior perspectives set a clear line of
objectives for the employees at different levels of hierarchy by aligning the roles and
evolving them by raising their standards (Cooper, Ezzamel, & Qu, 2017).
Organizational objectives, measures and targets of the Balanced Scorecard
The organizational objective that is targeted to be achieved with the help of utilization
of the balanced scorecard is the implementation of an environment within the organization

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and among the employees that promote a clear employee performance management system
that is inevitable in maintaining the company standards (Hoque, 2014).
The measures and targets undertaken by 2GC via the balanced scorecard approach are
the development of the performance criteria, forms and descriptors that is utilized for the
management of the employee performance; trial running of the system in a particular
geographical area; lastly, the implementation of the new employee management program
worldwide based on the results of the trial.
Elements of the Balanced Scorecard
The elements of the balanced scorecard that relate to the organizational criteria are
firstly, the results that represent the quantitative as well as qualitative indicators of the
operational performance of the firm including the operational efficiency related to future
business projections.
The next element that is activity, research and identify the exact roles and
responsibilities of the different designations or positions of employees at different levels. For
instance, a single core activity like resource management may apply differently to different
levels of employees, viz. the regional director, stores manager and assistant manager.
Thirdly, the element of describe and simplify the norms and values of behavior that
the organization is expecting from each employee. Thus, all these factors summarize the
employee management system.
Evaluation of the Balanced Scorecard system
The balanced scorecard system developed by the 2GC consultancy aptly suits to the
requirements of the client organization. The three elements of the balanced scorecard system

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effectively summarize the current condition of the employee performance in the organization
and then set clear standards in order to improve the performance of the same. Therefore, the
balanced scorecard approach has been best applied to remedy the problem faced by the client
organization (Martello, Watson & Fischer, 2016).
Conclusion
Thus, from the above discussions, it can be clearly obtained that 2GC has done a
commendable job in improving the employee performance management in the client
organization.

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References
Cooper, D. J., Ezzamel, M., & Qu, S. Q. (2017). Popularizing a management accounting idea:
The case of the balanced scorecard. Contemporary Accounting Research.
Hoque, Z. (2014). 20 years of studies on the balanced scorecard: Trends, accomplishments,
gaps and opportunities for future research. The British accounting review, 46(1), 33-
59.
Martello, M., Watson, J. G., & Fischer, M. J. (2016). Implementing a balanced scorecard in a
not-for-profit organization. Journal of Business & Economics Research (Online),
14(3), 61.