Balanced Score for the Balanced Scorecard Essay Example

and setting appropriate target measures for them.

The variations are determined by comparing the targeted performance with the actual, which will assist the firm in utilizing keywords such as Balanced scorecard, Benchmarking, Corporate strategy, Analytical hierarchy process. This research paper is published in Benchmarking: An International Journal Vol. 15 No. 4, 2008, pp. 420-443 by Emerald Group Publishing Limited, with the DOI 10.108/14635770810887230. Introduction Businesses houses are constantly striving for success in today's highly competitive and ever-changing environments.

In order to achieve their goals, managers must be willing to embrace different processes and accept benchmarking standards. These actions are crucial for efficiency and effectiveness. The benchmarks they accept should serve as references or measurement standards for comparison, as well as performance measurements that define excellence within a specific business. Additionally, these benchmarks should be measurable and represent achievements that are considered best-in-class ("On what is a benchmark?", available at: http://retailindustry.about.com/library/terms/b/bld_benchmark.htm). Due to the fierce competition in the market, managers have less time to respond to market situations.

The primary focus of organizations today is to maintain competitiveness through efficiency in operations and profitability. Rapid technological advancements and enhanced communication have resulted in managers being faced with a significant amount of data, requiring them to make decisions that align with market standards. This complexity emphasizes the need for benchmarking indicators that can objectively process data and enable quick and accurate conclusions.

Benchmarking is a strategic management process where organizations assess their processes and compare them to industry best practices. This helps organizations develop plans to implement these practices and improve performance. Benchmarking can be a one-time event or an ongoing process as organizations continuously

aim to challenge their own methods. Through benchmarking, organizations gain exposure to new ideas, methods, and tools that can enhance effectiveness.

By offering alternative problem-solving methods and proving their effectiveness, benchmarking assists in overcoming resistance to change. The paper "On best process of benchmarking" found at www.managementupdate.info/benchmarking.htm explains this concept. To evaluate the performance of a firm's strategy implementation, we have developed a calculation process called "Balanced score." This process determines a suitable benchmark figure for assessing achievements in performance.

The paper discusses the use of the "Balanced scorecard" concept proposed by Kaplan and Norton (1992a) and the model introduced by Brown and Gibson (1972) along with the added measure known as "balanced score". It highlights the importance of incorporating strategic intent in all activities. Over time, economies and companies have experienced significant growth. To continue expanding rapidly, many companies have expanded their operations globally.

The company has been compelled to face increased competition and unpredictability in the business environment they operate in. Strategy refers to the long-term direction and scope of an organization, enabling it to gain an advantage by effectively managing its resources amidst a dynamic environment. This allows the organization to meet market demands and fulfill stakeholder expectations (Jhonson and Scholes, 2001). It should be noted that any actions taken by competitors or customers can have significant implications for the company.

According to Porter (1985), the destiny of a company can be influenced by a single desire or the ambition of top management. Porter's five force model emphasizes the importance of considering various factors for organizational success. These factors include the firm itself, competitors, suppliers, customers, and substitutes. Failure to monitor and understand

these linkages properly can hinder organizational performance.

The study included data from high- and low-performing organizations, as seen in Table l. It is crucial for managers to fully comprehend the performance standards that the company must meet. However, simply understanding is not enough. Managers must also ensure that this information is effectively communicated throughout the organization. Additionally, top management should periodically monitor progress towards achieving strategic goals to guarantee successful strategy implementation.

In order to conduct a comprehensive evaluation, it is crucial to have objective measures that assess a company's efficiency and consider all aspects of its operations. Currently, intangible factors play a vital role in organizations and impact tangible assets. According to the Accounting for Intangibles report, human capital and structural capital are important indicators of a company's future value and its capacity to generate financial results.

The Skandia Reporting Model (2001) emphasizes the need for a systematic approach to reporting and managing intangible dimensions. In order to ensure success, modern managers must proficiently review all aspects of the business operation, including employee satisfaction, quality standards, social obligations, and customer satisfaction. These non-financial components are crucial for organizational success and can only be effectively linked through an appropriate strategy. The achievement of company goals depends on the successful completion of parameters set for all functions and activities. Porter (1996) adds that differences in cost or price between companies stem from the various activities involved in creating, producing, selling, and delivering their products or services. The choice and performance of these activities contribute to differentiation.