With everything that we have learned in this class and with thisweek reading, Balanced Scorecard shows organizational goals chart that is brokendown into four related areas. Which are learning and growth, Business process,customer and the financial (Balanced Scorecard Basics, 2017).
BSC letscompanies to bridge the gap between operating statement, where everyone incorporatesgoals, and how the day to day activities backup the company’s objectives. Forme it seems like BSC increases innovation and improvement process approaches likesix sigma and Lean manufacturing to a corporate goal as we learned last week.It also ensures that the customers voices are equally important.
But the performance of BSC is subjective. Opposingto the strategy pf quality, BSC is not quantifiable excepted for the opinion ofthe management and the surveys that were done. First, setting up a precisenumber of hours of learning a year to meet the organization’ goals of “learningand innovation” automatically does not mean all employees attend the training willutilize it in their everyday work to better the goals set at work or are focusingon the training to fill in the mission ratio of the organization instead ofworking on for example on an assembly line to understand it. Second, askinghigh morale from employees can damage managers rules, since morale is notalways a manager’s pure view rules.
Because setting up high morale goals might alongwith layoffs employees with low moral with hard working standards. BSC alsoseems not to incorporate the risk management or the direct financial analysisof economic value. Objectives that are selected under BSC does not automaticallyincludes opportunity cost computations. Because BSC can enhance a company financial reportingwithout automatically improving the quality of an organization nor improvingthe company’ financial numbers, it appears to be another type ofnon-value-added reporting. Or, even worse, its appears to be a distraction fromachieving actual goals of an organization.
Theoretically, BSC goals can be easyto reach but it can be hard to quantify.