Balanced Scorecard (Learning and Growth Perspective) It is known that examining old measures is a part of strategy for a manager. Measurements are very important for evaluating performance. But, as a rule, managers rarely think of measurements. Taking it into account, new strategies and processes have been introduced. They help to improve a situation without examining old and new measures of performance. The measures have been organized into an effective measurement system: the balanced scorecard. The balanced scorecard strengthens a companys strategic aims with a management system. It helps to make change in key areas such as product, process, customer, and market development, though the system was not applied successfully by all companies.
The balanced scorecard can be examined from four different perspectives that it gives to managers: financial, customer, internal business process, and learning and growth. Managers can choose measures from different types of activities such as financial, customers, internal processes, and innovation and improvement activities. Knowing the measures, a companys competitive strategy becomes clear. Learning and growth balanced scorecard perspective helps organizations to achieve stretch goals that have been determined in the previous perspectives. There is always a gap between financial, customer and internal business process objectives and the organization’s existing capabilities to achieve the aims. Learning and growth scorecard should diminish the gap.
The Coursework on Process of Learning
Learning is an invisible process in which the behaviour is modified in order to attain certain goals. It is a process in which an individual acquires and develops knowledge, understanding, skills, interests and attitude that are necessary to meet life’s situations. This paper briefly analyzes the process of learning. Introduction “Learning is the insatiable curiosity that drives the adolescent boy ...
It invests in the three categories such as employee capabilities, information systems capabilities, and motivation, empowerment, and alignment. These three categories help agencies be sure that their long-term mission and objectives will be achieved. One of the companies that have implemented the balanced scorecard is FMC Corporation. It is one of the worlds famous diversified chemical companies. For long years it has been occupied leading positions in agricultural, industrial and consumer markets.It provided solutions to the worlds best companies and their customers. The company is competitive on the world market due to the strategy it has implemented. Larry D.
Brady, CEO of FMC Corporation, was interviewed by Kaplan. He emphasized that the balanced scorecard has become the basis of the management system at FMC. The CEO defined the companys mission. It is to become the most valued supplier. As Larry D. Brady pointed, nowadays, the company uses a lot of advanced technologies in research and development. These technologies have helped to improve the delivery of medications. The company has enhanced foods and beverages, power batteries. New technologies have helped to protect crop yields, structures and lawns.
Most of all, the company could extend the manufacture of glass, ceramics, plastics, textiles and other products. But it was difficult for employees to implement new programs because they have to fit them with other things that must be done. Larry D. Brady emphasized that the balanced scorecard helped managers focus on the companys strategy. It is evident that rapid technological change demands a continuous learning process. The Learning and Growth Perspective should include employee training and corporate cultural attitudes related to both individual and corporate self-improvement.
Learning and Innovation perspective should include not only percentage of revenue from new services or technologies; but rate of improvement Index, staff attitude survey,number of employee suggestions,and revenue per employee. Learning and Growth Perspective helps focus a companys strategic vision. By the way it helps to provide a balance between external and internal measures. It is known that intangible assets are sometimes more valuable for a companys prospect than its tangible assets. Taking it into account, the company tries to use a new measurement system to achieve internal goals. Long-terms goals such as customer service, new products and others, were placed the first.
The Research paper on The Balance Scorecard Initiative
... balanced scorecard has four perspectives and this report gives the complete exploration of financial, internal, customer and learning and growth perspective. ... of potential students, potential employees, alumni and recruiters. Planning a balanced scorecard, performance metrics and implementing ... a company to improve, change and adapt according to the external environment. Creating a Balanced Scorecard ...
Larry D. Brady pointed in the interview that the company has worked out the strategy that must stimulate a thought process Due to the system, employees do things differently instead of do existing things better. (Kaplan, 1993, p.146) Thats why the company began to apply the balanced scorecard to staff groups. As the CEO says, Applying the scorecard approach to staff groups has been more eye-opening Then he added that many companies dont see staff useful in providing competitive advantage. But FMC Corporation is sure that learning and growth perspective is a great potential for the development of the organization. It helps to improve strategic capability. FMC could mobilize its forces towards its strategy.
It could create a culture in which people were deeply aware of and internalized the mission, vision, and core values.. (Kaplan, 2004, p.4) In conclusion Larry D. Brady emphasized that the balanced scorecard helps to join together what had been strong but separated capabilities in strategy development and financial control. (Kaplan, 1993, p.147) It is known that in any organization people are the main resource. So, developing and implementing new technologies it is necessary for knowledge workers be in a continuous learning mode. Usually, it is not easy to hire new technical workers all the time new technologies are implemented.
It is better to increase training programs of existing employees. Thats why learning and growth perspectives are the essential foundation for success. Most of all it should be pointed that ‘learning’ here is not the same thing to simple ‘training’. ‘Learning’ in the balanced scorecard means that the organization should have things like mentors and tutors. Communication among workers should allow them to be ready to help on a problem when it is needed. ‘Learning’ perspectives should include technological tools that were called “high performance work systems.” Among them there is the Intranet.
The Essay on Learning to Balance Responsibilities
There are many points in ones life that can change a person's character. Many things have happened throughout my life, but recently, I have noticed a change in me. After my junior year in high school, I got a job at Freeport Medical Center; In addition, I work at New Rice Bowl Restaurant two nights a week. I am currently in school while holding two jobs at the same time which takes a lot of ...
Managers of FMC Corporation are sure that the balanced scorecard is very useful and should be the core of the management system. It has helped the company to achieved a “balanced” among the four perspectives.
Bibliography:
Kaplan, R.S. (1993), “Implementing the balanced scorecard at FMC Corporation: an interview with Larry D. Brady”, Harvard Business Review, Vol. 71 No.5, 1993. Kaplan, R.S; Norton, D.
(2004), Measuring the Strategic Readiness of Intangible Assets., Harvard Business School Press, 2004..
