each reply students must incorporate at least 1 scholarly citation in current APA format. The citations must each be from a different source and cannot be the same as those used in their original thread. All 6 sources cited must have been published within the last five years unless the student is citing classic or historical theoretical information. Acceptable sources include the course textbook, scholarly peer-reviewed sources, and/or the Bible, in current APA format.
Feedback from the teacher: For the discussion board replies the thought is to continue building on the conversation, adding only new information that has not yet been touched on about the topic of the prompt.
Avoid repeating what you or your classmate have already stated. Statements that merely agree with or restate what you or your classmate has already said adds nothing new to the conversation.
Reply 1. Samantha
Harvard Business Review (2014) video provided an explanation of the balanced scorecard approach which was originally developed by Kaplan and Norton in 1992. Key elements of the balanced scorecard approach by Kaplan and Norton discussed within the video were expressed as four perspectives: financial, customer, internal, learning and growth. Each perspective having elements that pertains to both internal and external aspects of organizational operations. For successful implementation of this approach, each perspective requires its own identified goals and metrics (Harvard Business Review, 2014). In a study by Jabeen and Behery (2017), they found supporting evidence that utilizing the balanced scorecard approach was a useful mechanism in measuring performance and provide stability to demands.
According to Aguinis (2019) utilizing the balanced scorecard approach can create congruence between performance management and the strategic plan by aligning every level within an organization, inclusive of operations spread across states and/or countries. Aguinis (2019) expresses this through the use of “strategy map” (p. 71). Through this strategy map, top organizational leaders communicate a mission, vision, and strategic plans which gets translated into a unit’s individual mission, vision, and strategic plans; and completes with the modification and updating of individual position descriptions. As the top-down approach is occurring, all levels are being tied together with specific information to reach the main mission, vision, objectives, and goals. Each location is given clear cut expectations and strategies on how to accomplish them; the unification can occur across all departments/divisions regardless of geographical location. The management of performance becomes easier as the strategic plan outlines specific responsibilities of each position and connects it to how performing those duties will contribute to accomplishing the organizational mission and vision.
Within the video from Harvard Business Review (2014) and within the reading from Aguinis (2019); the optimal order of balanced scorecard approach is dependent on the organizations individual mission and vision. The important part is identifying the correct sequence of the four perspectives to achieve success for their own specific company. The conclusions from the study conducted by Kober and Northcott (2021;2020;) states a cause-and-effect relationships exist with the balanced scorecard approach and can impact performance goals. Therefore, the final perspective within an organizations strategic plan will be impacted by the effects from all the previous perspectives. In my prior organization, an optimal order of the balanced scorecard could be customer, internal, learning and growth, and financial. As a non-profit organization, the mission was to support service members and their families by providing quality care for their children. The customers (children in care and service members) individual needs and being able to provide the age appropriate developmental and educational experience were a priority. Staff were trained on a continuous basis to encourage and foster consistent learning and growth opportunities. If the program was a success, more customers would be referred and consider the program when they heard about it which would naturally increase the financial perspective.
As a manager, I would incorporate biblical principles into the process of implementing the balanced scorecard approach in a secular organization by inserting them into each perspective. For example, internal would have a focus similar to the words written in Romans 13:7 (New International Version Bible, 1973/2011); on treating others in the manner in which you would like to be treated, kindness, and respect. Being compassionate and loving each other can be essential in handling difficult situations, conflicts, and building cohesiveness within organizations. We all have a voice that wants to be heard, a purpose to fulfill, and we all should be confident in expressing ourselves without having to cause harm to another.
Aguinis, H. (2019). Performance management. (4th ed.). Chicago Business Press.
Jabeen, F., & Behery, M. (2017). Exploring the status and effects of balanced scorecard adoption in the non-western context: Evidence from the middle east. The Journal of Management Development, 36(8), 1063-1075.
Kaplan, R. S., & Norton, D. P. (2014, October 14). The explainer: The balanced scorecard [Video]. Harvard Business Review.
Kober, R., & Northcott, D. (2021;2020;). Testing cause‐and‐effect relationships within a balanced scorecard. Accounting and Finance (Parkville), 61(S1), 1815-1849.
New International Version Bible (2011). New International Version Bible. (Original work published 1973)
Reply 2 Shantel
Key elements of the balanced scorecard approach
The key elements of the balanced scorecard approach include the financial, customer, internal, and learning and growth perspectives. The perspectives represent the goals and measures found in most organizations. The financial view, in this case, is a viewpoint that describes the economic impacts of any actions taken in three of the remaining perspectives. The customer perspective represents a viewpoint defining the customer and the market segment the organization competes in. On the other hand, the internal perspective elaborates on the internal processes necessary to provide value for customers and owners. Lastly, the learning and growth perspective relates to an organization’s capabilities to develop long-term growth and improvement (Mehralian et al., 2017).
Linking performance management and strategic planning
The approach can form a link between performance management and strategic planning through alignment of the management process and focus the organizational plan with the company’s long-term objectives. It makes it possible for organizations to translate their plans into action and, as a result, paving the way to measure the actual performance against the set Benchmark and, in the process, identify the gaps and crucial issues in need of special attention. The usefulness of the approach is evident in the alignment of business strategies with the objectives of individuals to get rid of any ambiguity and encourage individuals to work towards achieving the shared set vision and goals of the organization (Quesado et al., 2018). Therefore, the balanced scorecard approach provides a framework that helps manage the implementation of a strategy and, at the same time, allows for the process to evolve in response to the changes in the various environments of the company.
Optimal order of the balanced scorecard approach
The traditional measurement systems mainly rely on the finance function, making it have a control bias on the systems. The conventional methods would specify the type of actions employees should undertake and then measure to determine whether the employees have as required. The traditional techniques were not effective because they tried to control behavior. The evolution and invention of the balanced scorecard approach changed the conventional perception of attaining control to focus on strategy and vision. This approach functions by assuming that individuals will take in the behaviors and actions necessary to arrive at the goals. The managers are aware of the outcomes, but they do not tell the employees how to achieve the results because of the changing conditions in which the employees operate. This order makes it possible for senior managers to understand the various interrelationships and surpass the traditional notions about functional barriers and lead to more enhanced decision-making and problem-solving skills (Frederico et al., 2020;2021). Therefore, the best optimal order for the balanced scorecard approach would start with the financial perspective, customer, internal process, and the learning and growth perspective.
God is a planner, and managers ought to plan in partnership with God. God designed the creation of human beings and everything here on earth, and it was perfect. As a manager of a secular organization, I would try and incorporate biblical principles in the implementation of the balanced scorecard approach by first planning with God and then plan in pencil. It would be foolish to plan in opposition to the will of God. Even though the results will not show immediately, they will eventually show, just like the tower of Babel, which ultimately collapsed when the participants believed that they had finally achieved their purpose. The Bible ascertains that it is indeed the plan made by the Lord that will prevail. “There are many devices in a man’s heart; nevertheless the counsel of the LORD, that shall stand” (King James Bible, 1769/2017, Proverbs 19:21). The approach is practical because it enables the organization to adapt to its specific needs and assess its performance.
Frederico, G. F., Garza-Reyes, J. A., Kumar, A., & Kumar, V. (2020;2021;). Performance measurement for supply chains in the industry 4.0 era: A balanced scorecard approach. International Journal of Productivity and Performance Management, 70(4), 789-807.
Kaplan, R. S. & Norton, D. P. (2014, October 14). The explainer: The balanced scorecard [Video]. Harvard Business Review.
King James Bible. (2017). King James Bible Online. (Original work published 1769)
Mehralian, G., Nazari, J. A., Nooriparto, G., & Rasekh, H. R. (2017). TQM and organizational performance using the balanced scorecard approach. International Journal of Productivity and Performance Management, 66(1), 111-125.
Quesado, P., Aibar Guzmán, B., & Lima Rodrigues, L. (2018). Advantages and contributions in the balanced scorecard implementation. Intangible Capital, 14(1), 186-201.