There is a speaker present for today’s BES class to talk about Balance Score Card. As i listen attentively, he explained that Balance Score Card contains a diverse set of performance measures with regards to financial performance, customer relations, internal business processes and the organisation’s learning and growth activities. The purpose is solely to capture the firm’s desired business strategy by including drivers of performance in all areas.
Innovation is crucial for organisations to grow and not get left behind others in the business world. Especially with how interactive consumers and business people are in today’s world, there is no doubt that organisations will need to set the standards by being the most innovative by in terms in products and service.
4 different perspectives of BSC are : – Financial Perspective
– Customer Perspective
-Business-Process Prospective
-Learning and Growth
For the financial aspect, organisations used to look to increasing revenue by 10 percent, maximising their profits as much as possible. However, profit margins and asset turnover are the 2 areas to improve their returns on investment in the modern world. By splitting into further components, organisations are able to ‘fine tune’ their methods of increasing profits.
In customers’ perspective, there are many aspects that we can look into: Market Share, Customer Satisfaction, Customer Retention, Customer Acquistion and Customer Profitability. As a marketing student, i also learnt that the relationship between organisations and consumers are evolving from the traditional ways where products are made based on company’s decision into a modern way where products are made according to what customers want. Market segments are created and more variation of products are now available in the market place. Companies invest much more money for customer relationship systems to improve their service to customers in order to retain current customers and attracting newer customers.
Businee-Process Prospective involves several processes about Process Value, Innovation, Product development, Operations, Measures for quality, Measures for cycle time, Post-sale service and First-pass yield. Management of a company’s resources plays another integral part in helping to improve yields, proper usage of funds. In short, some call this Total Quality Management.
Employees are an important part of Learning and Growth. Employees are crucial as more of them are involved in multi-tasking to cut down costs. At the same time, employees are sent to training to enhance their capabilities and creating leaders for the company. Productivity will improve while enrichment of their skills will motivate them to stay with the company for a longer term.
At the end of the day, BSC is another innovative alternative to view the performance of a company. There are no such thing as a perfect organisation with perfect employees, but BSC is certainly a great SWOT analysis of the organisation.
After the presentation, i really find Balance Score Card to be an effective system for any organisation to evaluate their performances. While it will be more costly to adopt to such a systems, bigger companies with sound liquidity and management that wish to increase their productivity and financial gains should consider using this model.






