Balanced Scorecard and Communication Plan

Balanced Scorecard and Communication Plan

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Balanced Scorecard and Communication Plan

Finance

Enhancing the return on investment for the shareholders of the entity is one of the primary goals and objectives of the management. This amounts to increasing profit oriented activities by diversification of the entity portfolio and increasing shareholder wealth. In addition, enhancing the shareholder wealth amounts to improving the share value through active strategies towards reducing costs of operation and improving revenue collection. Revenue collection in turn enhances the cash flows of the entity related to the entity’s operating activities.

There is a need to work towards ensuring that the financial statements reported by the entity, quarterly and annually are able to meet such targets (Bourne, & Bourne, 2007). Reducing costs of operation and enhancing the rate of capital employed for new capital investments undertaken by the entity through a variety of financing options provide a high return with respect to shareholder interests in the entity.

It is essential to ensure that communication is maintained with all level mangers in the entity with respect to the identified targets of cost reduction, shareholder investment enhancement and improving the overall financial health of the business. In addition, elimination of non-strategic investments in the entity would free up cash flows in the entity and reduce cost associated with running programs that do not contribute to the strategic objectives of the entity with respect to its strategic financial goals and objectives (Bourne, & Bourne, 2007).

Internal Business Processes

Improving internal business functions can enhance the position of the entity in the marketplace. Enhancing the number of activities related to various functions in the organization would improve overall organizational productivity levels. Reducing the levels of redundancy and duplication of duties would ensure efficiency across all internal functions in the organization. Furthermore, the entity would have to ensure that the core functions are aligned with the strategic goals and objectives of the organization.

Automation of various tasks and core functions using new technology would improve efficiency and reduce costs associated with process bottlenecks in the entity (Bourne, & Bourne, 2007). Launching corporate initiatives and programs in the organization as a means of introducing new approaches and functionalities in the business would move the entity towards the achievement of its strategic goals and objectives.

Learning and Growth

This forms an integral part of the organization in terms shifting and aligning the organizational goals and objectives. Issues such as employee turnover and the satisfaction levels of the employees should be evaluated as a means of enhancing employee productivity and motivating them towards their respective positions. Establishing individual performance goals and objectives is paramount especially with respect to the three top levels of management and their incentive compensation (Kaplan, & Norton, 2001).

In addition, linking all employees’ performances with the balance scorecard in terms of enhancing information movement within the organization and strategies for growth would ensure positive results towards achievement of strategic goals and objectives of learning new ideas that would enhance core functions execution in the organization (Bourne, & Bourne, 2007). Learning amounts to understanding new strategies, technology, creativity and innovation as well as constant benchmarking with respect to customer needs, wants, preferences and new human resource management techniques. Human resource and strategic planning towards distribution of resources should be geared towards growth and achievement of an optimized workforce.

Customer

This is one of the integral parts of the modern organization. Focusing on the clients or customers ensures that the entity understands the importance of clients towards the existence and profitability of the organization. Performance delivery, quality performance, client or customer satisfaction and retention of clients are important strategies and issues of consideration that should inform the core functions of the entity. Focusing on the needs of clients should drive the entity to learn to techniques that will enhance retention of existing clientele as well as attracting potential clients as a result of enhanced business process and provision of quality goods and services.

Communicating the importance of customers to the employees and the role of new strategies towards achievement of strategic goals and objectives of the entity is vital. The organization goals such as profitability and growth are all reliant on the focus on satisfaction and retention of clients. Customer loyalty has become a backbone for modern organizations as it provides a means of ensuring continued support from clients through purchases (Bourne, & Bourne, 2007).

It is essential to link incentives compensations to performance measures with respect to customer satisfaction and retention. This ensures that entities are driven towards ensuring performance driven culture as a means of enhancing customer services and improving the levels of customer turnover (Kaplan, & Norton, 2001). Linking employee compensation with the various items of the scorecard enhances the achievement of strategic goals and objectives of the organization. its is important to note that resource allocation and strategic planning should focus on the value of goods and services delivered to customers as a primary tool for achieving set out goals and objectives of growth and profitability.

Reference

Bourne, M., & Bourne, P. (2007). Balanced scorecard. London: Hodder Arnold.

Kaplan, R. S., & Norton, D. P. (2001). The strategy-focused organization: How balanced scorecard companies thrive in the new business environment. Boston, Mass: Harvard Business School Press.