Balanced Scorecard Essay

Introduction feat management systems are often designed to enable system of ruless to plan, measure and control their performance, so that decisions, resources and activities merchantman be better aligned with business strategies to achieve desired results and create dowerholder value. The balance Scorecard is a performance tool using financial and nonfinancial measures. It provides an organization with ways to develop and evaluate strategical objectives and goals.For the past two decades, the Balanced Scorecard (BSC) has been proposed as an integrated framework for the implementation of financial and nonfinancial performance measures that helps organizations align their initiatives with the organizations strategy (Kaplan Norton, 1992). The United States postal Service delivers more institutionalize to more addresses in a larger geographical area than any other post in the world. The Postal Service delivers to more than152 million homes, businesses and Post Office boxes in eve ry state, city, town and borough in this country.Everyone living in the United States and its territories has access to postal products and answers and pays the same postage regardless of their fix (USPS, 2014). This paper will examine the onusiveness of the implementation of the balanced score card approach. Key Issues for sermon Explain how the Voice of the Employee supports improved internal processes (Voice of the Business), and how the Voice of the Business supports customer joy (Voice of the Customer).Employees have a grand impact on their organizations financial results. When employees are empowered to make decisions they share information relating to the strategic processes and direction of that organization. When it comes to carrying out the message and mission of the organization the voice of the employee is very crucial. done empowerment, the employees are able to create an opportunity to show management how they will apply the connection wad to their daily task.T he voice of the business relates to information derived from financial data. This data tin be used to indentify failing in certain market areas and the status of the research and development process. In order to move the organization forward or closer to its overall objectives, analyst must understand the relevance of the balanced identity card process. The voice of the customer indentifies the needs of the customer which are keys to the strategy to defining which processes can be viewed as value added products or services.The customers are a continuous source of feedback both good and bad. Customer feedback can alike provide new opportunities to identify and develop new products. Kaplan and Norton advocated a healthy-connected map impinge on that leads from an organizations main strategy to the four perspectives of the balanced placard Financial, Customer Satisfaction, Internal Process, and instruction and Growth. Each element works to support the strategic objectives in a linked process.Customer satisfaction leads to the desired financial outcome, which in the case of the Postal Service is sufficient r til nowue to support the ecumenical delivery service mission (Evans, Lindsay, 2011). While Figure 8. 14 shows only representative measures associated with the balanced scorecard, invoke virtually other measures that might be included using your knowledge of postal operations. Based on my personal experience and knowledge of the United States Postal Service, I would suggest that the organization add some additional measures to it balanced scorecard.The organization should measure customer complaints relating to package handling and damaged goods. Damaged packages loosely lead to claims brought forward by customers which is certainly a value associated with it that should be tracked and measured. The organization should also measure and analyze the effects of the employee turnover rate. Employee replacement cost can have a huge affect on the financial element. Cost associated with the orientation and training of a new employee as well as the cost associated with employee separation can have an effect on the bottom-line.Advantages and Disadvantages of Using a Balanced Scorecard Some organizations have a difficult time establishing a process that can return its strategic vision into concrete goals and actions. There are understandably some beneficial advantages to applying the balanced scorecard approach. Some of these benefits include gaining a cross organizational team that will open channels of communications. The company will have enthusiastic people who are focused on carrying out the organizations mission and commitment to quality.Also, the company will gain a unique competitive advantage relating to humiliate time frames, improved decisions and better solutions. Most importantly, initiatives are continually measured and evaluated against industry standards. There can be some disadvantages as well. The balanced scorecard t akes a lot of planning and forethought. Defining clearly stated objectives and setting goals are crucial to the process. There can be resistance from employees or even management. Some individuals may see the implementation as a threat or indication of a lack of performance on their part.While the balanced scorecard gives an extensive overview of the organizations performance, it does non give recommendations regarding how to resolve discovered problem performance areas. Conclusion The case study involving the United States Postal Service presents evidence that the balanced scorecard approach can have a positive effect on an organizations overall performance. If integrated successfully, the balance scorecard will be a tool that ensures lucidity and consistency across all departments or individuals involved.Solving quality management issues rely on the serious approach and planning. Understanding the importance of the linkage among all four of the balanced scorecard is crucial to its success. peculiar(prenominal) attention should be given to the proper implementation and cultivation of intangible assets relating to learning and growth. The USPS has improved its service and has increased customer satisfaction. First-class mail performance has improved to over 95 percent of nightlong mail being delivered on time, with improvements in other categories of first-class mail (Evans, Lindsay, 2011).