Developing The Balance Scorecard: Strategies And Steps

Executive Summary

Write an essay on Developing the Balance Scorecard ?

This research paper focuses on developing the Balance Scorecard (BS) business model and system for the Anthony’s Orchards in order to enhance and improve position in the competitive market. Anthony’s Orchards main aim behind developing and implementing BC system is to enhance the level of income and revenue of $25 million dollars by the year 2015. Moreover, Anthony’s Orchards also adopt significant strategy to enhance key area of business associated with internal business system & process, Financial Management, customer and learning and growth. At the same time, the company also focused on creating IT infrastructure and IT network so it can maintain communication with customers and stakeholders. In the same way, BS helped the company in developing or maintaining relationship with its key stakeholders. Furthermore, Anthony’s Orchards also considers the strategy of introducing new and already existence products in order to bring improvement in the products for the purpose of competitive position in the worldwide market. In addition to this, balanced scorecard is one of the significant way that provides feedback to the management of the company in the context of about the effectiveness of internal processes and external outcomes that helps it to enhance performance and results.

Balance Scorecard (BS) is known as a performance management method or procedure that used by the management of the organization in order to assess or gauge the exercises as well as day to day activities of employees. Additionally, the BC is the reflection of financial and non-financial measures to target value within a compact report. Furthermore, in the current time, the administration of the company is utilizing BS to analyze the overall performance including financial (Huang, 2009). This paper focus on creating as well as developing a strategy map and balanced scorecard for Anthony’s Orchard by considering the key objective of the organization that is to surpass income of $25 million dollars by the year 2015. Anthony’s Orchards is a family- owned 6,000-section of land plantation arranged in Wenatchee Valley that is delivering apple for more than 60 years to the customers. In the same way, in the context of this paper, the different performance measurement criteria in the four different key areas of the company including financial; customer; internal business processes; learning and growth notes.

In the time of globalization, balanced scorecard is used by today’s profit and non-profit organizations as a strategic planning process and management activity in order to support organizational activities related to business and operations with their strategic vision, mission and strategic goals. It displays the criteria of performance that can help administration of the company to evaluate and keep up the execution as per the mission and vision of association. Balanced scorecard is also known as tool of management that is utilized by management to improve as well as maintain the performance of a company as per organizational core strategies, strategic mission and vision (Huang, 2009). Balanced scorecard also improves organizational performance in the different business areas by giving proper response and feedbacks about the viability of interior procedures and outside results that helps management to enhance core and strategic performance.

Balanced scorecard

The balance scorecards (BSC) includes to making the structure of measuring the key point of view, for example, monetary, client, inside business process and learning and development. The imperative piece of BSC idea that it stretched out on building up the harmony between four sort estimations that is:

• Short and Long term,
• exterior and interior environment
• Most important indicators and Lagging needle
• Objective measures and Subjective measures for generating ideas

(Source: Martin, 2008)

In the current time, different kinds of ways, strategies and methods are considered in order to develop the balanced scorecard. Hence, it can be said that, the following are the key steps that would be considered by the Anthony’s Orchards to improve the performance of the company in different areas of business operations.

Assess the mission and goal of the company: This is first key step in creating an effective balanced scorecard which the organization will need to define organizational aims and objectives by building up the business method viably. For example, in this step, Anthony’s Orchard would define its organizational vision, mission, objectives, goals and challenges and the management of the company would analyze the organizational capacity to accomplish mission or objectives (Huang, 2009). Anthony’s Orchard key objective is surpassing income of $25 million dollars by 2015.

Concentrate on Client Necessity: In this phase of BS, the organization would adopt an innovative and precious strategy to address the issue and desire of customers or clients. In the same way, this strategy would help the company in deciding the value, quality, and costs of the items to its clients in order to accomplish the vision, mission and objectives (Blokdijk, 2008).

Interior Business Processes: In this step, organization of Anthony’s Orchard must focus on the process of internal business and adjust the objectives and task with the strategic paln of the company. According to this, the organization must need to see on the specific exercises and practices that will most influence results.

Strategy Maps out the process. As per this step, the administration of Anthony’s Orchard would utilizes strategic mapping to in order to analyze how the developed strategic plan would fulfill the objectives of the company in an effective and proper manner. It incorporates specific values that the association will convey to their clients, customers and shareholders (Rampersad, 2006). In this procedure, the management of Anthony Orchard would make plans and develop innovative strategy to enhance overall organizational core objectives, mission and vision.

Assign initiatives and implement process: According to this step, the management of Anthony Orchard would need to provide directions to their employees and management about their duties, roles, functions and responsibilities and how they can be able to fulfill the performance goals properly. For case, the employees or team members would also need to understand the role and importance of strategic, objectives, goals and strategic plan for the total success of the organization (Niven, 2011).

Developing a Balanced Scorecard

Cascade the scorecard: This is the next step in which the company would consider various tools and procedures of measurement in the context of all the objectives. Moreover, the the previous and current market situation of the company would be considered in order to produce quality products to the customers. On the other hand, it should also be noted down that, the company Anthony Orchard would also focus on the following given area of business operations in order to improve the overall performance.

Anthony’s Orchard
Financial	To capture the extra market growth	Comparison to growth of the apple market or need of the apple related products
Maintain the base of business effectively	Volume trend line and gross profit margin
Expansion of the business operations in the worldwide market	Ratio of domestic to international sales
Commercialize new ingredients and services that are profitable	Gross profit from new products
Customer	To providing the quality products and services with a wide range of variety at the lower costs	To focus on various strategies that can help the company in maintaining the quality of its product in the market.
Customization of wide range of goods and services in order to fulfill the requirement of local customers	Enhancement in the % of products in R & D in test phase
To enhance the level of Customer satisfaction	Customer surveys
Internal Business Processes	To providing the product at the cheapest price	Total cost of product relative to competition
To continue reliable production	First pass success rate
Enhancing the efficiency of distribution system	Percent of perfect orders
Developing ability to monitor profitable products and services	Modification in the economic value
Incorporate acquisitions	Revenues per salary dollar
Learning & Growth Notes	Linking the business strategy with the reward system	Net income per dollar of variable pay
Innovative culture and development	To focus on annual assessments as well as Quarterly reviews
Creating competencies critical to overall gaps that must be filled	Percentage of competency deployment filled on tracking matrix

(Source: Tracy, 2011)

Evaluate the scorecard and the process: The four particular measures that may be utilized to track performance of the company effectively. For example, the financial execution may be utilized to track performance of Anthony’s Orchard in the terms of working edge, gross overall revenue, return on capital utilized, net revenue, others key bookkeeping proportions and accomplishment of offers or income objectives. Furthermore, Customer area may be utilized to track performance of organizational total sales on the premise of sales information, customer complaints, and surveys and puzzle shopping. Additionally, internal business process would consider the organizational performance on the premise of stock level, stock return, efficiency, floor space use and individual’s profitability (Wisner, 2011). Moreover, learning & development notes measures through utilized of follow development of Anthony’s Orchard in the terms of capacity to accomplish development and surpassing income of $25 million dollars. .

In the present time, there are different successful procedures, strategies and routines utilized by the business association to modify the balanced scorecard process. In the same way, it is suggested that, Anthony’s Orchard ought to take after the given techniques and systems in a powerful and more extensive way (Blokdijk, 2008). These are proposals are given underneath:

• It is suggested that, the administration and organization ought to concentrate on building and creating individual and organizational qualities
   
• The organization should also use viable rules and methodologies in adjusting the BSC process (Friedrichs, 2011)
   
• The organization and the administration should also concentrate on creating trust; relationship and pride within the association so that BSC procedure can be alter in a powerful way.
   
• The organization must also offer highest HR quality services on the grounds that it would minimize organization’s danger and assign the organization’s assets methodically (Khosrowpour, 2006).
   
• Moreover, management and employees to must also be considered in the prcoess of BSC for the smooth functioning of the procedures.

Subsequently, these are various rules and techniques that must to be used by the company management, organization and individuals appropriately to adjust the BSC’s procedure. The BSC methodology was actualized at Anthony’s Orchard framework as a result of a present culture change program. The primary target of cultural change project is to accomplish the organization’s objectives and mission through strengthening its five essential qualities (Blokdijk, 2008).

The senior administration of the Anthony’s Orchard decide to execute change program at Anthony’s Orchard framework by considering different aspects  as generate competitive benefits for the entire enterprise, reducing dependence on managerial authorities, develop formal rules and procedures and narrow division of work in between the employees. Besides, the principle purpose of this change project was Anthony’s Orchard’s equalization scorecard implies the BSC was focus to the association’s control framework (Murby & Gould, 2005). Moreover, to accomplish the targets of this change program the accompanying seven stages were trailed by the organization:

• Review of competitive position
   
• Involvement of senor employees in decision making
   
• Create share vision (Fisher, Lauria, & Chengalur-Smith, 2012).
   
• Overall vision of company is communicate with employees
   
• Create and plan for short-term performance goals
   
• Embed cultural change
   
• To maintain the link in between the cultural change project and organization competitive success (Murby & Gould, 2005)

Anthony’s Orchard

The Anthony’s Orchard’s balanced scorecard and change project methodology sways on the management control arrangement of the organization. Additionally, through utilized the BSC, NAE frameworks empower to report the month to month aftereffects of the scorecard through outwardly showing up method for on the web. Besides, the data was partaken in the middle of the every one of the organization’s workers and saw by administration. The BSC gives criticism of the top administration about the adequacy of inside procedures, representative execution, association society and outside results that helped administration to enhance vital execution (Blokdijk, 2008). This BSC methodology sways on the workers’ execution on the grounds that representatives are guarantee that their execution is not going waste and its execution would be considered by the administration amid evaluation and execution estimation. The organization’s representatives would be acknowledged the BSC activities in light of the fact that it helps them to accomplish its own goals through give great culture and workplace at working environment (Han, Kamber, & Pei, 2011).

Also, after Anthony’s Orchard’s framework executed BSC approach then it was centered around measuring and overseeing execution as per the present day bookkeeping execution measurements and additionally looks at the non-money related qualities identified with execution that persuades the workers to acknowledge the BSC activity (Huang, 2009). Furthermore, this methodology permitted representatives to view information from a top-down viewpoint and in addition distinguish the variables those contributes its execution and their work adds to the execution of specialty unit or association, so workers would be acknowledge the BSC approach. The workers may be trusted that their endeavors paid off by the association and its execution considered by the administration while choose installment level, so they are acknowledge the BSC activity (Huang, 2009).

The decision to not use a balanced scorecard approach as an performance management tool is aasociated with the different benefits and limitations for Anthony’s Orchard’s. For instance, the primary benefits of this is that, the organization can utilize BS as a strategic planning instrument that can help in enhancing the decision making inside of the association in a compelling and more thorough way. Interestingly, the choice to not utilize balanced scorecard as an performance tool has disservices. For instance, the organization would not have the capacity to embrace this for the enhancing different business region of an organization successfully including fund, promoting, operation, client administrations and so on (Mather, 2005).

Financial

Moreover, in today’s all the more difficult and focused business time, balanced scorecard methodology is utilized by the business firms for the distinctive purposes so that the upper e competitive advantages can be achieved over the competitors in a viable and fitting way. Then again, by utilizing BSC, Anthony’s Orchard’s can also enhance its market share, efficiency, productivity and enhance consumer loyalty in the overall industry. In the same way, BSC gives a considerable measure of advantages to Anthony’s Orchard’s in enhancing its operational, strategic and regulatory performance in a viable and fitting way (Chai, 2009).

For instance, balanced scorecard methodology gives a complete examination about diverse zones of business to an association adequately. For case, by utilizing and actualizing an balanced scorecard approach, Anthony’s Orchard’s future ready to assess and recognize the distinctive particular are of execution. Notwithstanding this, this methodology will likewise address every all the areas that need concern. That is to say, an organization can enhances its HR, fiancé, marketing, operational division, division in a more far reaching way (Grembergen, 2004).

The other principle points of interest of utilizing BSC methodology is that, it helps the Anthony’s Orchard’s in amending the diverse divisions. For instance, in the present time, in the association the administration of an organization creates and makes the goal or focus to the firm. Thusly, with the assistance of this, the administration of the Anthony’s Orchard’s would likewise have the capacity to audit authoritative key vision and mission viably. By taking the another illustration, if the administration of the Anthony’s Orchard’s finds that the work is getting hampered because of the breakdown of a key machine, it steps to either repair the machine or supplant it (Demirkan, Spohrer & Krishna, 2011).

(Source: Grembergen, 2004).

This tool can likewise be utilized by an organization as a comparison device. For instance, by utilizing this, the Anthony’s Orchard’s can be able to assess and look at the past, present and anticipated exhibitions at the foreordained time period and in an extensive way. This point of interest of BSC approach unmistakably demonstrates that, the Anthony’s Orchard’s future ready to evaluate the past highs and lows in execution successfully. J Integration of different functions is another primary point of interest of utilizing balanced scorecard approach. For case, this balanced scorecard methodology helps the Anthony’s Orchard’s and administrations in incorporating every one of the capacities and also capacity of an organization in deliberate way (Grembergen, 2004).

Customer

In the same way, the management of the Anthony’s Orchard’s would likewise have the capacity to design and implement different organizational function in a more particular way. Subsequently, it can be inferred that, by utilizing a balanced scorecard approach, a firm can take different benefits and advantages. The strategic objectives are essentially considered as the measures of achieving vision and mission of the organization in the business. Nonetheless, these strategic objectives can be produced in a BSC to see effectively. The BSC is a device that serves to analyze the condition of the company and their items in the business sector and vital change if there should be an occurrence of necessities (Jarke, 2003).

The primary qualities and Weaknesses are given underneath:

• It offers an unmistakable picture about the advancement of an organization in the setting of key vision, mission and destinations.
   
• It gives positive course to the organization for the satisfaction of hierarchical long haul objectives in a compelling and more complete way.
   
• This prepare likewise concentrate on the nature of merchandise, and administrations so it is extremely profitable in enhancing the consumer loyalty successfully (Wrembel, R. & Koncilia, 2007).
   
• Balance scorecard procedure is likewise viewed as a standout amongst the most critical apparatuses for the business firms to enhance inward business forms.
   
• This procedure is additionally vital and viable for the organizations in enhancing the diverse regions of business adequately, for example, money and operation

• Ignoring of competitors
   
• Exclusion of suppliers (Withee, 2010).
   
• Lack of Community and environmental
   
• Incomplete information
   
• This process takes more time, cost, and price

Conclusion

On the conclusion’s premise, it can be inferred that the BSC approach usage of Anthony’s Orchard would proper of them to enhance their general execution. Also, this methodology would be acknowledged by the workers in light of the fact that they trust that their execution has not given waste after actualize of this methodology and their endeavors paid off by the association. Furthermore, BSC methodology is enhanced inside and outer capacity of the Anthony’s Orchard that helps it to accomplish development and surpassing income of $25 million dollars. The BSC is additionally one of the powerful devices or strategy that likewise concentrate on the quality change by diminishing an extensive variety of expenses connected with the item or administration. With the assistance of BSC, Anthony’s Orchard would have the capacity to concentrate on the distinctive regions of business viably. For instance, with the assistance of this, monetary, clients, interior and so forth ranges would be enhanced by the organization that is essential in improving the quality effectively.

References

Blokdijk, G. (2008). Balanced Scorecard 100 Success Secrets, 100 Most Asked Questions on Approach, Development, Management, Measures, Performance and Strategy. USA: Lulu.com.

Blokdijk, G. (2008). Balanced Scorecard 100 Success Secrets, 100 Most Asked Questions on Approach, Development, Management, Measures, Performance and Strategy. Lulu.com.

Chai, N. (2009). Sustainability Performance Evaluation System in Government: A Balanced Scorecard Approach Towards Sustainable Development. USA: Springer.

Demirkan, H., Spohrer, J.C. & Krishna, V. (2011). Service Systems Implementation. USA: Springer.

Fisher, C., Lauria, E. & Chengalur-Smith, S. (2012). Introduction to Information Quality. USA: AuthorHouse.

Friedrichs, C. (2011). An analysis how the Balanced Score Card approach could enhance the personal contentedness considering the change in the society from a Work/Life balance to a multi-duty-life of individuals in consulting companies in Germany. USA: Diplomarbeiten Agentur.

Grembergen, W.V. (2004). Strategies for Information Technology Governance. UK: Idea Group Inc (IGI).

Han, J., Kamber, M. & Pei, J. (2011). Data Mining: Concepts and Techniques: Concepts and Techniques (3rd ed.). USA: Elsevier.

Huang, H.C. (2009). Designing a knowledge-based system for strategic planning: A balanced scorecard perspective. Expert Systems with Applications, 36 (1), 209–218.

Huang, H.C. (2009). Designing a knowledge-based system for strategic planning: A balanced scorecard perspective. Expert Systems with Applications, 36 (1), 209–218.

Jarke, M. (2003). Fundamentals of Data Warehouses (2nd ed.). Germany: Springer.

Jill, D. (2000). E-Data: Turning Data Into Information With Data Warehousing. USA: Addison-Wesley Professional.

Keyes, J. (2005). Implementing the IT Balanced Scorecard: Aligning IT with Corporate Strategy. USA: CRC Press.

Khosrowpour, M. (2006). Emerging Trends and Challenges in Information Technology Management: 2006 Information Resources Management Association International Conference, Washington, DC, USA, May 21-24, 2006. UK: Idea Group Inc (IGI).

Martin, J.R. (2008). Summary of the Balanced Scorecard Concepts. Retrieved from: https://maaw.info/BalScoreSum.htm

Mather, D. (2005). The Maintenance Scorecard: Creating Strategic Advantage. USA: Industrial Press Inc.

Murby, L. & Gould, S. (2005). Effective Performance Management with the Balanced Scorecard: Technical Report. Chartered Institute of Management Accountants. Retrieved from: https://www.cimaglobal.com/Documents/ImportedDocuments/Tech_rept_Effective_Performance_Mgt_with_Balanced_Scd_July_2005.pdf

Niven, P.R. (2011). Balanced Scorecard: Step-by-Step for Government and Nonprofit Agencies (2nd ed.). Canada: John Wiley & Sons.

Rampersad, H.K. (2006). Personal Balanced Scorecard: The Way to Individual Happiness, Personal Integrity, and Organizational Effectiveness. USA: IAP.

Smith, R.F. (2010). Business Process Management and the Balanced Scorecard: Using Processes as Strategic Drivers. Canada: John Wiley & Sons.

Wisner, J.D. (2011). Principles of Supply Chain Management: A Balanced Approach. USA: Cengage Learning.

Withee, K. (2010). Microsoft Business Intelligence For Dummies. USA: John Wiley & Sons.

Wrembel, R. & Koncilia, C. (2007). Data Warehouses And OLAP: Concepts, Architectures And Solutions. UK: Idea Group Inc (IGI).