Contemporary Management Technique Essay Example

like ACME, Inc can limit the profitability and growth of their competitors in the industry. The value in this approach lies in providing ACME, Inc's customers (such as NASA or USAF) with contracted services at the lowest possible cost. Additionally, ACME, Inc also benefits from its customers through revenue, which ultimately leads to profitability. Currently, ACME, Inc employs the total quality management (TQM) technique along with partially utilizing the activity-based costing technique (ABC).

TQM (Total Quality Management) involves developing policies to ensure that customer expectations are exceeded in terms of the organization's products or services (Blocher, Stout, & Cokins, 2010). As part of TQM, ACME, Inc evaluates its job costing systems by tracking the costs associated with each job using a generated work order number. For instance, when NASA issues a request for proposal (RFP), the contractor (which could be ACME, Inc) must adhere to strict guidelines set by NASA. ACME, Inc is evaluated by NASA on a quarterly basis using a metrics system, where it must achieve a score of 95% to be considered satisfactory.

This text discusses NASA's expectations and how ACME, Inc uses the ABC technique to improve cost analysis. According to Blocher, Stout, & Cokins (2010, p. 12), the ABC technique helps trace costs to products and improve accuracy. The same work order number is used to track direct materials and direct labor. Although these techniques have been successful for ACME, Inc, implementing the balanced scorecard (BSC) technique could be more effective since it is currently not being used.

The main objective of the balanced scorecard technique is to monitor the performance of strategy implementation in four balanced perspectives: learning & growing, internal process,

customer, and financial perspective (Jang, Luh, & Kung, 2011, p. 88). According to Blocher, Stout, & Cokins (2010), the balanced scorecard measures customer satisfaction, financial performance, internal business processes, and learning and innovation. In-Depth Analysis of BSC

The BSC is not a new concept, but rather builds on existing methods such as total quality management, continuous improvement, employee empowerment, and other systems (Xu & Yeh, 2011). It can be seen as an accounting report that focuses on categories like customer satisfaction, internal business process, learning and innovation, and financial measures. Robert S. Kaplan and David P. Norton introduced the BSC in their Theory of Performance Evaluation in the 1990s (Hui, 2010, p. 82-83).

The category of customer satisfaction evaluates the organization's ability to meet customer needs and expectations. This involves identifying the customer and market segments, as well as understanding their efficiency criteria (Valeckovc, 2009). On the other hand, the category of internal business process assesses how effectively and efficiently the organization produces its products or services (Blocher, Stout, ; Cokins, 2010, p. 11). It is crucial for the organization to establish and prioritize its key internal processes as they directly impact desired outcomes (Valeckovc, 2009).

The category of learning and growth highlights the organization's aptitude in utilizing available resources to achieve strategic goals and plans (Lupi, Verzola, Carandina, Salani, Antonioli, & Gregorio, 2011). Within this category, organizations need to be innovative in investing in employee development, policy enhancement, as well as technological advancements. The final category within the Balanced Scorecard (BSC) framework encompasses financial measurements, indicating the company's profitability in relation to its market value.

An example of its financial performance is "...how well the firm satisfies its

owners and shareholders" (Blocher, Stout, ; Cokins, 2010, p. 11). The implementation process of the Balanced Scorecard (BSC) is challenging for organizations. According to Blocher, Stout, ; Cokins (2010), one reason for difficulties in implementing the BSC is that measurements for one category may not be appropriate for another category. This leads to difficulties in comparison, especially when comparing non-financial measurements to financial measurements of the BSC.

There are several reasons for the difficulties encountered in implementing performance measures and linking them to desired outcomes. One reason is the failure to validate the assumptions underlying these links (Blocher, Stout, ; Cokins, 2010, p. 820). Additionally, human error can also contribute to implementation challenges, especially when it comes to accurately measuring results (Blocher, Stout, ; Cokins, 2010, p. 820). In order to ensure successful implementation of the Balanced Scorecard (BSC), Blocher, Stout, ; Cokins (2010) propose six steps for maximizing the value of non-financial measures.

1. A casual model is developed to demonstrate the connections between measures, performance, and desired outcomes.
2. Data is collected to improve the consistency, accuracy, and accessibility of the data for decision makers.
3. The collected data is converted into information to test the validity of the developed model.
4. The model is continually refined by monitoring internal and external events in a timely manner.
5. Actions are based on the findings, with confidence in the model guiding decision-making.
6. Outcomes are continuously assessed to evaluate the effectiveness of both the model and the actions taken to achieve desired results (p.21).

Once all steps are completed, the management must ask themselves if the model has worked for ACME, Inc. If the answer is yes, then the Balanced Scorecard (BSC)

has been successfully implemented. If the answer is no, starting over from step one to analyze potential alternatives is necessary.

Amberg & Panitz (2009) highlight how Price Waterhouse Coopers, Inc., an auditing company, applies BSC as a compliance reporting tool to determine data security rules and establish guidelines for identity and access management and information security (p.156). Verizon Business also utilizes a compliance scorecard for its customers.The compliance scorecard compares the security programs of companies to industry standards. It calculates a percentage, which serves as a meaningful evaluation of a company's security standards (Amberg & Panitz, 2009, p.156).

The BSC technique has potential applications in the healthcare industry, particularly within organizations like hospitals. It is essential to implement the BSC because healthcare organizations are required to improve their performance for multiple stakeholders and deliver integrated care, which necessitates effective work, innovation, and efficient organization (Lupi et al, 2011, p. 7). In addition to financial measures, the BSC would measure non-financial metrics like customer satisfaction.

Regarding ACME, Inc, the BSC technique is suitable because it provides balance to the organization. The central concept of the BSC is "balance," where ACME, Inc's evaluation system does not exclusively focus on optimizing partial benefits but emphasizes coordinating and unifying the entire value chain (Hui, 2010, p. 84). ACME, Inc aims to excel in all areas of evaluation with NASA rather than just one area of their metrics review. Therefore, it is important to implement the BSC technique to ensure this division aligns with the vision and strategy of the organization. The BSC also enables ACME, Inc to achieve its critical success factors.

According to Blocher, Stout, ; Cokins (2010), CSFs are "measures of

those aspects of the firm's performance essential to its competitive advantage and, therefore, to its success" (p. 10). ACME, Inc has both financial and nonfinancial measures of success through its CSFs. Some of the financial measures are earnings and dividends growth, credit rating, stock price, and cash flows (Doe, 2011). Some of the nonfinancial measures are customer satisfactions, internal capabilities, innovations, and employees (Doe, 2011). Doe (2011) demonstrates in the following chart the Balanced Scorecard Perspective/Objective/Measure for ACME, Inc Kennedy Space Center Division (KSCD): Customer - improve customer satisfaction (1. 100% Customer Satisfaction 2. Meeting or exceeding Metrics system percentages. 3. Maintaining ISO 9001 certification), Financial - reduce costs to NASA and other government contractors (1. Finding new ways to control the costs billed to NASA and other government contractors. Profitability 2. Controlling total workforce ratio while abiding by Collective Bargaining Agreement. Growth 3. Strategic research and bid proposals for NASA cost-plus contracts), Employee - competitive benefits and salaries.

Earnings for both represented and non-represented employees are determined through Collective Bargaining Agreements and comparisons to other governmental agencies in the region, respectively. Equal opportunities for training and promotions are provided to all employees, regardless of their representation status. Additionally, employees are empowered to make decisions within their designated authority limits. The company excels in the information technology industry and specializes in developing patented software and equipment that meet NASA standards.

Internal Business Capabilities: Improving Safety and Quality
1. Strikly following OSHA and NASA rules and regulations.
2. Adhering to the ISO 9001 standards for Quality Assurance.
3. Developing additional safety rules to be followed alongside the requirements from OSHA and NASA.

Implementation Plans of the Balanced Scorecard (BSC) for ACME,

Inc, KSCD
To effectively implement the BSC technique, ACME, Inc must follow a six-step process to optimize its business performance and achieve its strategic objectives. Since employee empowerment is a priority for ACME, Inc, a select group of employees will be involved in the design and implementation of the BSC.

ACME, Inc will commence the implementation process by gathering data and information to construct a model that identifies desired outcomes and associations between measures and performance. In this stage, the team will define strategic objectives that will be translated into actions. Subsequently, team members will create a strategic map based on the balanced scorecard framework. This strategy map will establish performance measures that exhibit connections across four categories: customer satisfaction, financial performance, internal business processes, and learning and innovation. Once the strategy map is finalized, close monitoring of progress without any alterations will take place as they have faith in its guiding direction. If events align with desired outcomes, it can be concluded that the model is effective.

From a Christian perspective, Mark 8:34-38 teaches about discipleship under Jesus where one must deny themselves, carry their cross, and follow him. By sacrificing their life for Jesus and spreading his gospel message, they ultimately save it."If someone were to acquire the entirety of the world but lose their soul, what benefit would they have? And what could anyone offer in exchange for their soul? If someone is embarrassed by me and my teachings in this corrupt and immoral era, the Son of Man will also be embarrassed by them when he arrives in his Father's majestic presence accompanied by divine angels" (NIV).

In Mark 8:34-38, Jesus Christ highlights the

importance of an exchange and its worth. Just as in a commercial transaction, there are two parties - a buyer and a seller - each with their own desired value. For example, if a buyer desires knowledge about Jesus' teachings, they can acquire a Bible from the seller. The Bible holds significance for the buyer, while the money used to purchase it is valuable to the seller. Jesus is expressing that this concept of exchange goes beyond earthly transactions; it also applies to obtaining eternal life by having faith in Him and his teachings.

The concept is referred to as the value proposition in business terms (or commonly known as CSF), but from a Christian perspective, it is called a Christian value position. The only requirement for Christians is to replace their self-centered life with one that aligns with the desires of Christ. Jesus asks, 'What benefit is there in gaining the whole world if you lose your soul? What can be exchanged for one's soul?' When confronted with this choice to live for Christ, individuals should assess their goals first. What does the Lord desire from me? What will I receive in exchange?

One may even create a strategic map to illustrate this situation. Throughout the process of making a final decision, various events occur that can either facilitate the person's acceptance of Jesus or complicate the decision, leading to fear. Ultimately, a process similar to an organization implementing a Critical Success Factor (CSF) through the use of the Balanced Scorecard (BSC) occurs.

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