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Hello, I am looking for someone to write an article on The Balanced Scorecard as a Performance Indicator. It needs to be at least 1500 words.
Hello, I am looking for someone to write an article on The Balanced Scorecard as a Performance Indicator. It needs to be at least 1500 words. Companies often link compensation to scorecard measures because they believe that tying financial compensation to performance is a powerful lever. However, to get the right and intended results, the company must have the right measures on the card. The data should be valid and reliable so that unintended and unexpected consequences do not arise (Kaplan & Norton, 1996). The Eddison Electronics Company (EEC) should focus on long-term objectives rather than on short-term measures. If the compensation is linked to the performance right away, this strategy could lead the organization in the wrong direction (Walker, 2008). A strong ethical culture is essential to communicate and educate the employees on intolerant and inappropriate behaviors. This could also be subsequently measured on the scorecard. The top management leads by example and they should set the example of ethical behavior.
Using the BSC has its advantages because the company does not have to rely on short-term financial measures as the indicators of the company’s performance. However, there are certain barriers to strategic implementation (Evans, 2002). No one in the organization understands the strategies of the organization (vision barrier), people have objectives that are not linked to the strategies of the organization (people barrier), resources are not properly utilized such as the budgets are not linked to strategy (resource barrier), and management spends too little time on strategy and too much time on short-term decision-making (management barrier). All these barriers can lead to wrong measures when compensation is linked to performance.
Traditionally the organization is viewed from four different perspectives against which data is collected and the performance measured against the goals set. These include the learning and growth perspective, the business process perspective, the customer perspective, and the financial perspective.
