Select a company and identify, categorize by “box” (i.e., financial, customer, internal business processes, and learning and growth), and explain 6 examples of items from the organization that would fit into the Balanced Scorecard. Additionally, identify and explain any potential linkages.
Balanced Scorecard
Philips Electronics Company uses a balanced scorecard to educate employees on the critical business goals, align company vision, ascertain key financial indicators, and communicate business strategy. The company incorporates various elements to meet the company’s operational and financial performance. The company altered the balanced scorecard to fit its purpose and developed four critical success factors, which are linked to the balanced scorecard. The elements include financial, customers, processes, and competence. The company replaced learning and growth with capability, which incorporates teamwork, leadership, knowledge, and leadership. The four factors offer six elements that measure the effectiveness of the balanced scorecard (Aktaş, 2019). The six key aspects include customer delight, employee satisfaction, information technology support, organizational development, the overall increase in the company’s revenue, and operational excellence.
| Financial | Customers | Internal business processes | Learning and growth |
| The overall increase in company’s revenue | Customer delight Employee satisfaction | Operational excellence | Organizational development Information technology support |
The overall financial and operational of the company depends on the interrelationship between different factors in various departments. The six elements relate are linked to the balanced scorecard. Information technology support and organizational development drive the competence standpoint. The operational brilliance drives process outlook, while the overall increase in company’s revenue drive the financial perspective worker satisfaction. Finally, client delight drives consumer view (Gumbus, & Lyons, 2002). The balanced scorecard is used in both commercial and non-financial business activities.
Philips Electronics Company has realized significant benefits after implementing the balanced scorecard. The system links the long-term and short-term strategies of the company. Employees use the scorecard to improve performance, while indicators monitor the implementation of the business strategy (Aktaş, 2019). The company has managed to the main streamlined, direct, and transparent communication channel between organizational framework, values, goals, and the people through the use of the balanced scorecard.
References
Aktaş, U. (2019). Applications of balanced scorecard in different business contexts.
Gumbus, A., & Lyons, B. (2002). The balanced scorecard at Philips Electronics. strategic finance-montvale-, 84, 45-49.https://www.scribd.com/document/44682018/The-Balanced-Scorecard-at-Philips-Electronics
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