7107IBA - Balanced Scorecard Application in Supply Chain Management

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Case Study
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This case study examines the application of the Balanced Scorecard (BSC) framework within the context of sustainable supply chain management, particularly focusing on Manpower Australia. It discusses the strengths and weaknesses of using the BSC, emphasizing its role in aligning strategic objectives with performance measures across financial, customer, internal processes, and innovation perspectives. The study also explores how the BSC can be redesigned to address innovation and productivity themes, considering factors like infrastructure, markets, and sociocultural frameworks. Furthermore, it highlights the BSC's importance in managing emerging business challenges, such as growing market share, contributing to employment expansion, and repositioning the brand. The analysis emphasizes the need for clear communication of strategic priorities and the development of strategic initiatives to measure impact on business performance, ultimately connecting management with a measurement framework for long-term financial success and customer relationships.
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Running head: SUSTAINABLE SUPPLY CHAIN MANAGEMENT
Sustainable Supply Chain Management
Name of the University:
Name of the Student:
Author Note:
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1SUSTAINABLE SUPPLY CHAIN MANAGEMENT
Answer 1
The procedure of developing and implementing the current Balance Score Card can
help the managers in recognizing the impact, which the strategic measures have on employee
performances. However, they believe very rarely that measurement is a vital factor of the
strategy. For instance; the executives might introduce some innovative processes of operating
and new strategies intended for achieving the breakthrough performances. Moreover, they
can continue to utilize the same financial indicators, which they have utilized for decades. In
addition to this, the can measure the return on investments, operating income and sales
growth. The managers at times, fail to introduce some new measures in order to monitor the
new processes as well as goals. Moreover, they also question if or not the old measure are
totally relevant to the innovative initiatives (Cuganesan, Ford & Khan, 2006).
It can be stated that effective way of measuring should be considered as an integral
part of management. The development and implementation of BSC (Balanced Scorecard) will
help in providing the executive with a framework, which will translate the overall strategic
objectives of the company into a set of performance measures. Moreover, management
system of balance scorecard motivates the breakthrough of the enhancements in critical areas
like product, customer, process as well as market development (Akkermans & Van Oorschot,
2018).
The strengths were the scorecard helped in presenting the managers with various
perspectives regarding choosing measures. Moreover, the scorecard can also complement the
traditional financial indicators along with the performance measures for the internal
processes, customers, innovation as well as improvement activities. These particular
measures differed from the ones, which were traditionally being utilized by the company in
various ways. Most importantly, the company got benefitted by the different operational as
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2SUSTAINABLE SUPPLY CHAIN MANAGEMENT
well as physical measures for the local activities. These measures are derived and bottom-up
from the ad hoc procedures (Hansen & Schaltegger, 2016).
On the other hand, there were certain weaknesses as well, which needs to be pointed
out. Firstly, the scorecard measures were grounded in the organizational strategic objectives
as well as competitive demands. Moreover, this requires the managers to select at least, a
limited number of the critical indicators. In addition to this, it should be done from different
perspectives as the scorecard will help in focusing on the strategic vision of the company. In
addition to this, the traditional financial reports are presented without even indicating the
performance improvement measures of the managers (Cooper, Ezzamel & Qu, 2017).
Therefore, it can be said that the balanced set of measures will enable the company to achieve
its goals in the near future.
Answer 2
Balance Scorecard can also be redesigned for ensuring the fact that Manpower can
assess the achievement of the plan ‘to be recognized as the Australian Leader in delivering
ground-breaking people solutions’. The scorecard will be redesigned by keeping in mind the
innovation as well as productivity themes. The balance scorecard model can be redesigned
for the western countries to operate within the capitalist system. It can be made innovative by
taking the infrastructure, markets, customers, capital sources, government intervention, socio-
cultural frameworks as well as the literacy levels into consideration. Moreover, the purpose is
to redesign the innovative perspective in order to suggest the new management approach for
the organization (Park, Lee & Chae, 2017).
The balanced scorecard model can be redesigned in order to address both the financial
as well as the non-financial measures at the time of performance management and corporate
planning systems. The aim of the model will be to add the leading measures in order to
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3SUSTAINABLE SUPPLY CHAIN MANAGEMENT
represent the indicators for the future performance planning to the traditional measures of
finance that are based on the past performances. In addition to this, the model should
emphasize more on the requirements of the information for covering all the areas like
corporate performance systems measurement (Roghani, 2016).
Moreover, the company should also incorporate some measures as well as initiatives
in the scorecard in order to lead the market. They can balance their finance and non-financial
perspectives in order to get utmost satisfaction. The internal efficiencies, innovation
perspectives and customer satisfaction should be the most sought-after points. The innovation
perspective mainly describes how the organization can improve their long term progresses.
This can be done simply my taking the extra skills as well as abilities into consideration,
which would benefit the company on the long run (Lubis, Torong & Muda, 2016).
In addition to this, the company needs to measure the looks on how the organization’s
intangible assets can reflect the skills availability, talent of the employees and other factors.
Most importantly, the three different measures of the innovation are organizational structural
capabilities, employee capabilities as well as information system capabilities. The current
perspective of the innovation can be measured through the company’s balance scorecard.
Furthermore, the company can also focus on several management theories and the adoption
of these practices or theories can help the executive managers of the company on the long run
(Coe & Letza, 2014).
Answer 3
Balanced scorecard plays a major role in helping and managing the emerging
challenges of the business that are being identified. In order to make the strategic themes of
the Manpower Company operational, it needs to reposition and take some innovative steps in
order to succeed. Moreover, the challenges which are addressed are the growing market share
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4SUSTAINABLE SUPPLY CHAIN MANAGEMENT
in the growth sectors and industries, contribution to the employment expansion in the
communities, meeting the industrial benchmarks, repositioning the brand and proactively
managing the risks. Balanced scorecard will help in communicating and driving the strategic
priorities by developing as well as finalizing the strategic initiatives (Lin et al., 2016).
It will help in measuring the impact on the business performances. Moreover, the
implementation tool should consist of the vision as well as strategies of the Manpower
Company. It should be translated into actions on the basis of facts and measurements.
Additionally, the key challenges are required for the measurement systems, so that it has
lesser impact on the relationships with the customers, organizational capabilities as well as
core competencies. These measures or information would also help in increasing the
reactions or refining the planned initiatives in order to meet the challenges (Valmohammadi
& Ahmadi, 2015).
The can be done by connecting the management with the measurement framework for
the long term financial successes, systems performances, great customer relationships,
employees and internal processes. However, to achieve the clarity for Manpower’s strategy,
the company can develop various sessions of strategies with the management. In addition to
this, the strategy map will help in describing the corporate strategies as well as elaborate the
values through execution strategies. The key outcomes related to the financial parts and
customer relationships should be identified in order to get benefitted on the long run
(Roghani, 2016).
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5SUSTAINABLE SUPPLY CHAIN MANAGEMENT
References
Akkermans, H. A., & 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.
Coe, N., & Letza, S. (2014). Two decades of the balanced scorecard: A review of
developments. The Poznan University of Economics Review, 14(1), 63.
Cooper, D. J., Ezzamel, M., & Qu, S. Q. (2017). Popularizing a management accounting idea:
The case of the balanced scorecard. Contemporary Accounting Research, 34(2), 991-
1025.
Cuganesan, S., Ford, G., & Khan, H. (2006). Using strategy maps and the balanced scorecard
effectively: the case of Manpower Australia.
Hansen, E. G., & Schaltegger, S. (2016). The sustainability balanced scorecard: A systematic
review of architectures. Journal of Business Ethics, 133(2), 193-221.
Lin, M. H., Hu, J., Tseng, M. L., Chiu, A. S., & Lin, C. (2016). Sustainable development in
technological and vocational higher education: Balanced scorecard measures with
uncertainty. Journal of Cleaner Production, 120, 1-12.
Lubis, A., Torong, Z. B., & Muda, I. (2016). The urgency of implementing balanced
scorecard system on local government in North Sumatra–Indonesia.
Park, S., Lee, H., & Chae, S. W. (2017). Rethinking balanced scorecard (BSC) measures:
formative versus reflective measurement models. International Journal of
Productivity and Performance Management, 66(1), 92-110.
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6SUSTAINABLE SUPPLY CHAIN MANAGEMENT
Roghani, M. (2016). Analysis of Relation between Model of Balanced Scorecard (BSC) and
Organization Performance. International journal of advanced biotechnology and
research, 7, 1167-1180.
Valmohammadi, C., & Ahmadi, M. (2015). The impact of knowledge management practices
on organizational performance: A balanced scorecard approach. Journal of Enterprise
Information Management, 28(1), 131-159.
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