Strategic Planning and Management System

Introduction
The Balanced Scorecard refers to a strategic performance management tool typified by

automation tools, verified design methods and semi-standard structured report that can be
utilized by managers to monitor the implementation of organizational activities by organizational
members under their control and monitor any following consequences associated with the
execution of these actions. The Balanced Scorecard is the most prevalent and adopted of the
several strategic performance tools since the early 1990s. In addition, the derivatives of the
Balanced Scorecard such as Performance Prism and Results Based Management have also
gained prominence in the field of strategic performance management and improvement. The
Balanced Scorecard is one of the strategic planning and performance management systems used
extensively by the business world, non-profit organizations and governments with the goal of
aligning business operations with the strategy and vision of organizations, improving
communications at both internal and external levels, and monitoring the performance of
organizations against the established strategic goals. The Balanced Scorecard commenced as a
performance management tool that incorporated strategic non-financial performance measures to
the conventional financial indicators in order to provide managers and company executives with
a somewhat balanced view of the aspect of organizational performance.
Definition- Balance scorecard
The balanced scorecard is a strategic planning and management system that is used extensively
in business and industry, government, and nonprofit organizations worldwide to align business
activities to the vision and strategy of the organization, improve internal and external
communications, and monitor organization performance against strategic goals. It was originated
by Drs. Robert Kaplan (Harvard Business School) and David Norton as a performance
measurement framework that added strategic non-financial performance measures to traditional
financial metrics to give managers and executives a more 'balanced' view of organizational
performance. While the phrase balanced scorecard was coined in the early 1990s, the roots of the
this type of approach are deep, and include the pioneering work of General Electric on
performance measurement reporting in the 1950s and the work of French process engineers
(who created the Tableau de Bord literally, a "dashboard" of performance measures) in the
early part of the 20th century.
The balanced scorecard has evolved from its early use as a simple performance measurement
framework to a full strategic planning and management system. The new balanced scorecard
transforms an organizations strategic plan from an attractive but passive document into the
"marching orders" for the organization on a daily basis. It provides a framework that not only
provides performance measurements, but helps planners identify what should be done and
measured. It enables executives to truly execute their strategies.
In simple word, The Balanced Scorecard is a set of measures that are directly linked to the
companys strategy. It directs a company to link its own long-term strategy with tangible goals
and actions.
The Four Perspectives in a Balanced Scorecard
The BSC retains financial metrics as the ultimate outcome measures for company success, but
supplements these with metrics from three additional perspectives customer, internal process,
and learning and growth that we proposed as the drivers for creating long-term shareholder
value.
Financial performance
Customer knowledge
Internal business processes
Learning and growth
SWOT Analysis
This is an example of a SWOT analysis in deciding whether to introduce a new service into their
portfolio.
Strengths:
Reputation for innovation
Good internal communications
Excellent sales staff with strong knowledge of existing services
Successful marketing strategies
Good relationship with customers
Excellent footfall
Weaknesses:
Currently struggling to meet deadlines - too much work?
High rental costs
Market research data may be out of date
Cash flow problems
Holding too much stock
Poor record keeping
Opportunities:
Similar services on the market are not as reliable or are more expensive
Loyal customers
Service could be on the market for ideal time
Customer demand - have asked sales staff for similar services
Threats:
Competitors have a similar service
Competitors have launched a new advertising campaign
Competitor opening service center nearby
Downturn in economy may mean people are spending less

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Introduction

The Balanced Scorecard refers to a strategic performance management tool typified by

Reputation for innovation

Good internal communications

Excellent sales staff with strong knowledge of existing services

Successful marketing strategies

Good relationship with customers

Currently struggling to meet deadlines - too much work?

High rental costs

Market research data may be out of date

Cash flow problems

Holding too much stock

Poor record keeping

Service could be on the market for ideal time

Customer demand - have asked sales staff for similar services

Competitors have a similar service

Competitors have launched a new advertising campaign

Competitor opening service center nearby

Downturn in economy may mean people are spending less

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