Question

1. How does Balanced Scorecard factor into an organization’s total strategy? 2. What is the relationship between a company’s vision and the balanced scorecard? 3. What are the four processes described by the authors?

Answer 1

(1): Balanced scorecard factors in an organization’s total strategy by aligning the day to day work of the organization with its strategy and by prioritizing different projects, products and services of the organization as per their strategic intent. Balanced scorecard is a strategic management performance tool that takes into account factors like customer, internal business processes, financial and learning and growth. Balanced scorecard factors in an organization’s total strategy by looking at strategic measures in addition to traditional financial measures to get a more “balanced” view of performance.

(2): There is a direct relationship between a company’s vision and balanced scorecard. We know that a vision statement is a company’s picture of future success i.e. where it wants to be in future. Balanced scorecard helps an organization to achieve its vision by focusing on strategic initiatives and strategic objectives. It clearly helps the organization to develop a cause-effect relationship among objectives and all these helps the organization to walk towards its vision in a systematic manner.

(3): The four processes are – translating the vision, communication and linking, business planning, feedback and learning. These processes enables organizations to make a more decisive and precise use of their intangible assets in the long run so that the goals and objectives are optimally achieved.