How to apply Balance Score Card

How to apply Balance Score Card 

Competition has become so intense that managers do have less time to respond to market situation. Efficiency in operation and the profitability are. the key words in driving organizations today to remain competitive. The rapid technology development and improvement in communication have forced the manager to deal with a large quantum of data and arrive at the decision which would produce results comparable to market standards. This makes the process little too complex.what they perhaps needs in some benchmark in indicators to process the data objectively and to come to a conclusion not only correctly but also quickly..

According to BSC collaborative, there are four barriers to strategic implementation. They are

1.vision barrier -No one in the organization understands the strategies of the organization.

        In this situation, the organization is difficult to achieve to its targets without knowing the targets by the employees and all. Toprevent from this barrier,the all employees should be known the targets of the organization , by when the targets to be achieved.So in our bank all employees should have the significant knowledge about its targets.Through training session they can be educated

2.People barrier-Most people have targets but they have not linked to the strategy of the organization.

          In this situation, in order to cross this barrier, all employess should be in one target as well they should have same vision.

3. Resource Barrier-Time, energy and money are not allocated to those things that are critical to the organization.

          The management should understand the need of the bank and Time, energy and money is most important to implement the balance score card in the bank. Allocation of time energy, time is not wastage at all

4.Management Barrier-Management spends too little time on strategy and too much time on short term tactical decision making

  The bank should be expected the strategically decision from higher management than the tactical management. So they should have enough time to allocate to get strategic decisions

Therefore, through this research paper they have devised a process of calculating a suitable bench marking figure called balance score through which the achievements of the performance in the implementation of the strategy by the firm can be evaluated

Balance score card is a system that enables the organization to clarify their strategy and translate them into action. It is a system derived from the strategy reflecting the business objectives which the firm had set for it self.

Balance Score card consists of 4 categories. They are,

1)Financial Perspective-It evaluates the profitability element of the strategy

2)Customer’sperspective-It identifies the target market, segments and measures the company’s success in these segments.

3)internal andbusiness perspective –It focuses on internal operations.

And

4) learning & growth perspective- It identifies the capabilities in which the organization must excel in order to achieve superior internal process that creates value for customers and share holders.

Our bank applies Balance score card to achieve its targets.

First metrics should be designed to support strategies. According to Kaplan and Norton there are typical allocation across four perspectives.

1-Financial (22 %)

2-Customer (22%)

3-Internal (34%)

4-learning and growth (22%)