Identifying Value Drivers / Sage Publications.

Format:

Book

Author/Creator:

Rajagopal, Ringo, author.

Sage Publications, author, issuing body.

Series:

SAGE skills: Business.

SAGE skills: Business

Language:

English

Subjects (All):

Value added.

Physical Description:

1 online resource

Place of Publication:

[Place of publication not identified] : Sage Publications, 2024.

Summary:

The balanced scorecard was developed by Robert Kaplan and David Norton to harmonize, improve, and monitor performance and operations of organizations. Kaplan and Norton were working with several companies to develop new measures of performance that would go beyond financial measures to provide a more comprehensive view of organizational performance. Traditional models were too focused on financial indicators as measures of performance of an organization. The original idea behind the balanced scorecard was to create a set of measures that would provide a more balanced view of organizational performance across four key perspectives: financial, customer, internal processes, and learning and growth. The approach was designed to provide a more holistic view of performance that would help organizations better align their strategies and operations. Kaplan and Norton first introduced the balanced scorecard approach in a Harvard Business Review article in 1992 and subsequently published a book on the subject in 1996 titled The Balanced Scorecard: Translating Strategy Into Action. The book quickly became a bestseller and has since been widely adopted by organizations around the world. Traditional methods of organizational performance relied more heavily on concepts such as return on investment and earning per share. This may have been relevant for the industrial era, but contemporary organizational fabric requires a more comprehensive and holistic measure that allows the leadership to align the firm's activities in such a way that it addresses all the important components of a firm that drive success and sustainability. Since its introduction, the balanced scorecard approach has evolved and expanded to include additional dimensions and perspectives. For example, some organizations have added environmental or social dimensions to their balanced scorecards to reflect their commitment to sustainability or corporate social responsibility. The balanced scorecard approach is widely recognized as a leading framework for performance measurement and management and is used by organizations across a range of industries and sectors. There has been extensive research, and the evidence points to the balanced scorecard approach being robust and beneficial, as companies using the balanced scorecard tend to outperform their peers in terms of financial performance, customer satisfaction, and internal business processes. With dynamic changes in industries, the ability to be flexible, agile, and aligned to the vision and goals of an organization is critical for survival and success. In this Skill, you will start by learning how the balanced scorecard is a holistic planning tool to help organizations align their strategies, objectives, and initiatives with their overall mission and vision. This module will give you an appreciation as to how the balanced scorecard helps organizations align their objectives and strategies by considering the financial, customer, internal business processes, and learning and growth perspectives. There are several benefits of balanced scorecard adoption such as building strategic alignment within the firm, improved decision-making, enhanced communication, continuous improvement, and increased accountability. The other critical aspect of the balanced scorecard helps align business strategy with individual goals by measuring and monitoring the organization's performance across various perspectives. You will also learn what value drivers are and how they play a critical role in the success of an organization's strategy. The balanced scorecard will help determine which value drivers are essential and how to prioritize them to ensure that the strategy is effective and aligned with the organization's mission and vision. This module will also examine the importance of indicators of performance. They are typically measurable and quantifiable variables that an organization can use to track and evaluate its success or progress toward achieving its goals. Finally, you will learn how the balanced scorecard framework can be applied in an entrepreneurial organization in much the same way as in a larger organization. However, the specific indicators of performance and strategic objectives could differ depending on the size and stage of the start-up.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

1-0719-6168-3

9781071961681

OCLC:

1438745445