Balanced Score Card Essay Example | Topics and Well Written Essays - 3500 words

Balanced Score Card - Essay Example According to various studies, the Balanced Score Card system affects strategy at the levels of finance, customer, internal, and growth. One advantage of this strategy is that it relies significantly on measurable outcomes that weigh against specific goals as spelt out in the organization’s specific mission and vision. According to a range of financial management literature, the application of the Balanced Score Card is manifest at the financial level of strategy (Punniyamoorthy, & Murali, 2008; Figge, Hahn, Schaltegger, & Wagner, 2002, p. 269). This is because, financial growth strategies are comparably easier to ascertain as compared to the other levels of strategy as customer growth and satisfaction. The universal characteristic of these strategies involve the active application of specific periods within certain financial goals are measured (Brown & McDonnell, 1995). The levels of success or failure are measured within the specified period in order to obtain the most accurate standards of measurement as spelt out within specific growth objectives and strategies. On this score, it becomes appropriate to consider the fact that time factor remains one of the most important considerations of the rate of growth. Financial Management In many organizations, the determination of growth using the Balanced Score Card method involves the determination of revenue growths and profits (Chavan, 2009). This usually entails the determination of the rate of growth in profits as understood together with certain financial measurable. The application of the strategy involves the determination of the strategic growth objectives and the outcome measures as the key determinants of growth within the strategy (Chavan, 2009). For instance, within a manufacturing company, strategic growth could involve the determination of various strategies for growth and other processes (Brown, & McDonnell, 1995). Some of the issues that relate to the development of strategy within the understanding of the Balanced Score Card relate to the need to adjust outcomes within definite operational paradigms. On this matter, it is necessary to consider the fact that the application of strategy remains an integral issue that applies within various factors an d strategies of growth. The determination of specific outcome measures assists in providing the management with specific indicators of telling whether the strategy relates well with the projected goals (Chavan, 2009). The assumption is that the end-result is significantly a factor of the strategy within, which it was achieved. The relationship between outcome and process depends on the manner in which the strategy relates with the financial objectives and the ability of the management to harness all the other aspects of the strategy towards the attainment of the same. The various processes that attach to strategy relate to other application specifics that combine to form some continuous link between the starting point of the strategy and the budgeted outcomes (Chavan, 2009). Critics of the Balanced Score Card strategy contend that other variables apart from the mechanics of the strategy could be involved in the achievement of the specific goals of the organization. Organization proc esses are subject to multiple internal and external factors, which affect the processes in different