Holmes Institute T2 2019 HA2011: Balanced Scorecard Analysis Report

This report delves into the Balanced Scorecard (BSC) technique, a crucial management accounting tool for performance measurement. It begins with an executive summary and introduction, followed by a description of Qantas Airways, including its background and operations. The report then explains the BSC and its features, highlighting its four perspectives: financial evaluation, customer perception, internal business processes, and learning and growth. A key aspect is the comparison between the BSC and traditional performance measurement systems, emphasizing the BSC's advantages. The report concludes by assessing the suitability of the BSC for Qantas Airways, arguing its potential benefits for the airline's long-term success. The analysis considers the company's internal processes, customer satisfaction, and overall strategic objectives. References are included for further research.

Management accounting

Executive summary
The report has been made on the balanced scorecard which is a technique used by the
companies to measure their performance. All the features which are obtained with the help of
this are taken into account and proper description of the approach is made. There is the
identification of the difference which exists among the BSC and the traditional approach
which is used by the companies. The deviation states that the advantages which are obtained
with BSC are more than that of the traditional method. There is the consideration of the
approach in respect of Qantas and it has been concluded that it will be highly; suitable for the
company and various benefits will be attained with the help of this in long run.

Table of Contents
Executive summary....................................................................................................................2
Introduction................................................................................................................................4
Description of Qantas airways...................................................................................................4
Description of BSC and its features...........................................................................................4
Difference between BSC and traditional performance measurement systems..........................6
Suitability of BSC for Qantas airways.......................................................................................7
Conclusion..................................................................................................................................9
References................................................................................................................................10

Introduction
The report is prepared in relation to the balance scorecard technique which is used in the
businesses. It is a management accounting tool which is used for the measurement of the
performance. In this report there will be a description which will be provided for the Qantas
airways and in that complete information about the company will be provided. There will be
consideration of BSC and in that, all of the aspects in relation to the same will be covered.
The feature of the technique and the benefits which will be attained with this will be
identified. There will be consideration of the difference which exists among the BSC and the
traditional systems which are used. There will be the determination of the deviations so that
complete knowledge about the tool can be obtained. The manner in which the techniques will
be beneficial for the company will also be taken into account and will be explained in an
adequate manner.
Description of Qantas airways
Qantas airway is the leading airline's company of Australia and same has been founded in
November 1920. It is the leader in the Asia-pacific region and is counted among the top 10
companies in the world. There are a total of 81 destinations which are covered by the
company and they are covering the 40 countries of the world (Qantas, 2019). There are
domestic services which are provided by the company in New Zealand and Australia. In a
year there are about 30 million passengers who are carried by the company. There are main
two brands which are operated by the company and they include Jet star and Qantas. The
company operates and there are many subsidiaries which are involved in the company.
Description of BSC and its features
In the business it is very important there is an appropriate plan which is made and in that, all
of the important aspects shall be covered. The performance which is made in the company
shall be measured and for that, there are various systems which can be used. The balance
scorecard is one of them and by the help of that, it will be possible to make the adequate
evaluation of the performance and then the effective decisions can be taken for the coming
period by which the improvement will be made by the company (Balance scorecard institute,
2017). There are various uses of this technique such as the effective communication will be
made possible by which all of the targets and processes which are to be attained will be

fulfilled and the success will be attained the day to day activities will be carried in better
manner as the strategies will be there which will be taken into use. The projects which are
available are vast in number and in order to complete those in an effective manner the priority
of all shall be identified. There will be proper monitoring of the progress which is made. All
of these will be fulfilled with the help of this technique and for that proper implementation of
the same will be made.
There are mainly four perspectives which are involved in this technique which include the
financial evaluation, customer perception, internal business processes, and learning and
growth. The main perspective is the financial evaluation for which the technique is used.
Under this, there is the consideration of the financial information and then the measurement
of the performance of the business is undertaken (Clark, 2017). By the help of this, the
current performance is evaluated and then the company makes such decisions which will be
leading to the increased gain in the coming period. This will be considered and the overall
improvement will be made as the increase returns will be used to take the additional measures
by which the company can attain higher growth and sustainability.
Customer perception is another perspective which is involved and in that the preferences and
requirements of the consumers are taken into consideration. With the changing time, there is
the change in the needs and requirements of the consumers, their perspective is different and
it is required that the services shall be provided to them as per the needs. The customer’s
view will be considered in the identification of the position of the business and so customer
satisfaction shall be improved at the highest level.
The internal process which is involved in the company is required to be maintained in an
effective manner and for that, there shall be consideration of all the elements which are
involved in the same (Grigoroudis, Orfanoudaki and Zopounidis, 2012). If the internal
process of the company will be strong then all the activities will be performed in the best
manner and that will lead to the attainment of the best quality and the processes will be
completed in an effective manner. In that, all of the issues which are involved will be
considered and then the method by which they can be eliminated will be taken into account.
The last perspective is the learning and growth in which the growth of the business is
measured in terms of the employees, infrastructure and other components which reflect the
growth of the business (Valmohammadi and Ahmadi, 2015). If there will be the incorporation

of the best technology and skilled people then it will be considered that there is an adequate
system which is followed and the company is providing the adequate learning by which
growth is made.
All of the perspectives which have been defined are required to be followed under this system
and with the help of that, there will be best results which will be attained. The progress will
be made as the results which are obtained will be helpful in making the decision for the
coming period and the success will be attained and performance will be improved.
Difference between BSC and traditional performance measurement systems
All of the businesses are required to evaluate their performance and in that there is the use of
various performance measurement strategies which will make it easy for the company to
make the decision (Ioppolo, Saija and Salomone, 2012). In this, there were the traditional
systems which were used earlier and now the company uses a balance scorecard method for
the measurement of the performance.
The balance scorecard is the technique in which the company integrates all the financial as
well as the non-financial measures and by the help of them, there is the integration which is
made between the strategic objectives and performance measures of the company. By the
help of this, it is possible for the business to analyze all of the results which are obtained in
the company and also the operations which are performed and the capacity is evaluated in an
adequate manner (Rabbani et al., 2014). All the performance objectives are taken into
consideration and the performance of the company is monitored with the help of this
approach. In this, there are various perspectives which are involved and with the help of them
the customer perspective is taken into account and then the activities are performed in a
required manner. The value of the customers is identified and that helps in carrying the
functions in a manner that will be providing them with the maximum amount of satisfaction.
By the help of this, all of the resources are used in such manner that the short term and long
term both the objectives are attained by the company. This is because the internal processes
are considered in this technique and there is the consideration of all the processes in an
adequate manner.
In comparison to this earlier, there was the traditional system which was used and in that
there was the consideration which was only provided to the financial objectives. There are
some additional features which are incorporated in the balanced scorecard method which

were not available in the traditional system. In this, only the short term goals were taken into
consideration and there was no focus which was provided to the long term goals (Taticchi,
Tonelli and Pasqualino, 2013). In the case of the traditional system only the existing activities
were considered and monitors which are involved in the current period. The quality and other
aspects were not paid any attention to this technique.
BSC takes into consideration all of the future aspects and in that there are various innovations
which are considered and by which the performance will be improved. This is because of the
various perspectives which will be considered in this method. The needs of the consumers are
attended to and by that, the company helps them to remain satisfied and this will be helping
the business to retain the consumers for a long period of time. In BSC there is the
consideration of the objectives of the business as well as the consumer's requirements are
taken into account.
The main difference is the consideration which is provided to the future in case of BSC which
was not there in the traditional approach. In that, there were the inclusion of the existing
systems and all the changes which will be taking place were not involved in the making of
the system. In case of the additional system, there is no account which is kept in relation to
the tangible assets which are also the part of the company and needs to be incorporated in the
process (Franco-Santos, Lucianetti and Bourne, 2012). This is not a good approach to exclude
the main aspect but the same is not done under the balance scorecard. There is the
involvement of the intangible assets in that and all of the changes which are taking place in
them are also taken into account.
From the discussion which is carried it can be said that there are various differences which
arise in both the approach and the crux is that in case of the balance scorecard the
performance is evaluated for the existing as well as the coming period which is not the case
with the traditional system. In the traditional, there is the inclusion of the current system an
all the risks which will be arising in the coming period will not be paid any heed. The
approach of balance scorecard is more beneficial for the business in the long term and to
maintain the position in the market.
Suitability of BSC for Qantas airways
Qantas airway is the company which is dealing in the airline services and that is the industry
in which there is the need for the proper system and focus is made on the satisfaction of the

consumers. For that, there will be the use of the balance scorecard which will be highly
suitable for the company (Davis et al., 2012). All of the perspectives which are involved in
the method will be of use to the company and it will be able to fulfill the requirements and
meet with the targets which are set to be attained.
The internal processes are highly important in the company as then only the [roper
management of various tasks will be made possible. There shall be proper checking of the
airplanes and the manner in which the allocation of the task is made. By the help of that, the
company will be managing all the flights in such manner that there is no delay which is made
by the company (Wu and Liao, 2014). All of the systems which are involved will be able to
coordinate as they will have the proper communication which will be established with the
help of the BSC. The company will be in the position that it can deal with the issues which
are faced in the most adequate manner.
The financial perspective of the approach will help the company in attaining the financial
goals in the most adequate manner. The freight which will be charged by the company from
the consumers will be decided in such manner that it is affordable for them and will also be
beneficial for the company. There will be a proper evaluation which will be made and if there
are any of the transactions or expenses which are waste and are not providing the company
with an advantage then they will be eliminated from the system and there will be saving of
that cost in the company. This will be reducing the expense and the amount which will be
saved will be used to do the other operations which will yield the additional benefits for the
company.
There are various types of passengers who are involved and all have different requirements
and needs. It will be the responsibility of the company that their needs are identified and they
are fulfilled in the best possible manner. The consumers will be provided with the best
facilities and new innovations will be made in this so that more of the customers can be
attracted and this will be rising the profits of the company (Dinçer, Hacıoğlu and Yüksel,
2017). There will be consideration of the coming period and al the changes which are
required as per that will also be incorporated in the company.
In the airline industry, it is important to have skilled and talented employees as then only they
will be able to treat the customers with dignity and in the manner required. The customers in
this are of different class and they want the proper treatment. If the employees will be skilled

then they will be able to deliver the best services and with the use of appropriate means. This
will be made possible with the help of the balance scorecard as the company will be using the
learning and growth perspective. There will be proper training which is provided to the
employees and in that they will be developed in personal as well as professional manner. This
will be advantageous for the company as well as the employees in the long run.
Due to all of these factors, it can be said that the company will be benefiting from this
approach and BSC is suitable for the company.
Conclusion
From the report, it can be concluded that there are various benefits which are involved in the
use of the technique. There has been an understanding which is obtained in relation to the
approach. All of the features which are involved in the system have been identified and there
is the proper knowledge which is gained because of the same. The traditional approach which
was used to measure the performance in the earlier period has also been considered and
compared with the balance scorecard has been made. In that, the manner in which one is
better than others has been provided. The approach is highly suitable for the Qantas airway
and this has been understood with the explanation which is provided in the report in which all
the benefits which will be attained are identified.

References
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September 2019]
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