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Balanced Scorecard Essay

1126 words - 5 pages

Balanced ScorecardBUS/475: Integrated Business TopicsJanuary 25, 2010Balanced ScorecardCreating mission and vision statements are the initial steps of strategic management, "the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company's objectives" (Pearce & Robinson, 2009, p. 3). Establishing what the business is and where it wants to go leads to the development of strategic objectives that identify "what must be done to realize the vision and mission of a business" (University of Phoenix, 2009, para. 2). Knowing what must be done is not enough; a set of specific actions and measures are needed. "A balanced scorecard is the tool that can identify what must be measured, what the specific measures are, and what specific targets are needed" (University of Phoenix, 2009, para. 2). The balanced scorecard is "a strategic approach and performance management system that enables organizations to translate a company's vision and strategy into implementation, working from 4 perspectives: (a) financial perspective, (b) customer perspective, (c) business process perspective, and (d) learning and growth perspective" (Value Based Management, 2009, para. 1).Strategic ObjectivesStrategic objectives and a balanced scorecard (appendix A) were developed by taking into consideration the company mission statement, vision statement, values, and the outcomes of the SWOTT (strengths, weaknesses, opportunities, threats, and trends) analysis for My First Teeth Keepsakes.Financial PerspectiveThe strategic objectives for the financial perspective are:Increase market share by five percent yearly for the next five years.Increase profitability three percent yearly after break-even point.Increase revenue two percent yearly for the next five years after year one and decrease costs one percent yearly for years two through five.Customer PerspectiveThe strategic objectives for the customer perspective are:Increase amount of customers two percent yearly for the next five years.Establish partnership with one dental provider monthly for the next five years.Offer one new product line every two years.Internal Processes PerspectiveThe strategic objectives for the internal processes perspective are:Improve operational efficiency by one percent yearly for the next five years.Increase marketing budget one percent yearly for the next five years.Provide quality innovative products and service with 98% quality control.Learning and Growth PerspectiveThe strategic objectives for the learning and growth perspective are:Improve use of technology in production and service three percent yearly for the next five years.Maintain employee satisfaction at 95%.Increase workforce knowledge and skills with trainings yearly over the next five years.Derivation of ObjectivesEach of the strategic objectives are interrelated and derived from a combination of...

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