Balanced Scorecard Strategy And Performance Management Management Essay
This course work of Performance Management is about Balance Score Card, its application on Bexely Library. Balance score card is used for organizing and monitoring the performance of any organization and its best advantage is that it helps to point out the flaws. It provides a step by step orientation of work and identifies the right time for execution of right time. It has various perspectives associated with it i.e. learning and growth, business, customer and financial.
Introduction: Balanced Score Card
The balanced scorecard is a tactical planning and organization and controlling system. It is used broadly by the government, different sectors of government, nonprofit organizations, private and public business and industry throughout the world. It helps to support business activities in an aligned manner to the apparition and stratagem of the organization, expand and increase internal and external communications, and monitor and control organization’s performance in contrast to strategic goals. It delivers a charter that not only provides performance dimensions, but also helps planners recognize what should be done and measured instead or as a mitigatory measure.
It was initiated by David Norton and Dr. Robert Kaplan (Harvard Business School). It was initially used as a performance measurement tool that enhanced strategic non-financial performance measures to outdated financial metrics to help out the managers and executives a more ‘balanced’ view of organizational performance.
The balanced scorecard suggests that we view the organization from four perspectives.
The Learning & Growth Perspective:
This standpoint comprises employee training to and with corporate cultural attitudes which are related to both individual and corporate self-improvement. In the current scenario of quick technological changes, it is becoming essential for information workers to live in a continuous learning approach. Norton emphasizes that ‘learning’ is more than ‘training’ and it comes with both intrinsic and extrinsic outlook. For instance, it can be referred from Air Craft manufacturer Boeing. As soon as the labor started getting polished skills to manufacture a part of the air craft, the time to manufacture it also decreased. This ultimately led to reduce cost and increased profitability as the labor worked more in lesser time.
The Business Process Perspective:
This perspective mentions the internal business processes that are accountable with the micro environment. This perspective permits the managers to analyze how well their business is going on, and whether its products and services are in accordance to customer requirements. Since the merger of Bank of Tokyo and Mitsubishi Japan, it took 2 years to merger the cultures of these organizations. The complexes of inferiority and superiority amongst them were about to lead them to lose their management output day by day. This was being tackled after.
The Customer Perspective:
In case if customers are not contented, they will ultimately find other contractors that will meet their requirements. Creation of poor performance from this point is thus a leading sign of future failure, even though the existing financial status may look prosperous. KFC stands for Kentucky Fried Chicken and it made packages of veggie products into its product range in INDIA while covering the factor of ethnicity.
The Financial Perspective:
Judicious and precise funding statistics will always be significant, and managers will do what so ever essential to offer it. In reality, mostly there is ample conduct and processing of financial information. With the application of a commercial record, it is expected that most of the processing can be centralized, standardized and automated. Nonetheless the fact is that the current stress on financials indications to the “unbalanced” state with respect to other viewpoints. There is conceivably a requirement to embrace additional financial-related information, for instance risk assessment and cost-benefit data categorically.
Benefits (Advantages) of Balanced Scorecard
Balanced Scorecard gives a depiction of the organization’s communal objective and goals.
This means the aim of library is to serve people as knowledge hub. The way it will be doing will be its strategy and manner of its performance will be demonstration its vision.
Elucidates and communicates this idea to assemble and focus the organization.
Since a vision is a declaration that explains for what an organization exists for, this has to be distinguished by the user and beneficiaries of it also. The pledge of the management to stand for a drive for its strategic determined is the core idea.
It provides a rapid, but wide-ranging, picture of the organization’s strength and accomplishment.
Initiatives are repeatedly measured, evaluated and controlled in contrast to industry’s standards.
Improved Decision making and Better Solutions formulation.
The Balanced Scorecard helps to bring an organization for key performance measures with strategy at all levels within an organization.
Application of Balanced Scorecard Strategy to Bexely Library
Bexley Village Library is under threat of closure by the Conservative controlled Local Authority (Bexley) following cuts made to Local Authority funding by the Conservative and Liberal Democrat coalition Government. At this stage a community group of volunteers are considering taking over the running of Bexley Village Library. It will be very appropriate for them to take help of the balanced scorecard (Advantages described above)
The Learning & Growth Perspective:
Staff training will prove a vital procedure for cost reduction in Bexely Library. Bexley currently has twelve libraries and three mobile library vehicles which employees’ a large number of staff. Staff can be trained to work more efficiently and excess employees can be made redundant to reduce cost.
Staff members can be used in different related areas to reduce number of employees. They can also be utilized at other locations in a sharing agreement to reduce duplication across boroughs.
It is a much trend of making everything online available. This is an important aspect in relation to growth. This will also reduce the cost of services as there will be low requirement of keeping text books, and will rather be a collection of e-books available through library website.
Measure of job satisfaction and salary competitiveness:
Surveys should be conducted amongst employees to know their satisfaction level. Increase satisfaction level means retention of employees. Thus reducing redundancy cost and training cost for new recruitment.
The Business Process Perspective:
Decrease in mobile libraries:
Bexely currently has 3 mobile libraries and it can still continue to work at same level even if it reduces the mobile libraries to 2. Having a 3rd mobile library is just increasing the cost.
Charging Schools etc. for their use of mobile library:
Schools and other community people should be charged for using mobile libraries. This can cover significantly the cost of running the mobile library.
Changing opening hours:
Late night opening should be stopped at libraries. Libraries should be closed at 7pm rather than 8pm. This will significantly reduce the cost of lighting and heating.
In Addition to this each branch of library can be closed for half a day each week. This will also result in cost reduction.
Buying items and services together to get a better price:
Library should collaborate with other libraries in buying books. This will decrease cost by bulk buying. It will be beneficial for both libraries and most libraries will be willing to accept this offer.
The Customer Perspective:
Better quality of materials:
The value for money exists only when the customer perceives it. It would be useless for any organization for making and big claims for it unless it fruitfully convey it. Not only just conveying the value to the customer and making it perceived by it, it’s also necessary to manage it till the end of any product life cycle. Taking a reference from a case study of Ford in consideration here, it was evident in 1970’s practically; it was perceived as an executive car. But as its value was mismanaged it was used very enormously by American police and movies, the product lost it value and up till every effort has become useless to sustain its worth.
Sometimes organizations are unable to anticipate the need and demand of the users and it brings a bad name to itself due to unavailability of its product. Many methods have been used in order to cope with this sort of problems. One of it is the arrangement of the product as when it’s needed. This underpins pull through demand philosophy. As the customer asks from the product it’s been arranged by the firm. This is same as “Just In Time” system. Such arrangement was first introduced in world by Toyota Japan. Before applying this strategy they were facing huge costs in line with material storage. They managed to obtain all those facilities those could equip them with such resources which enabled them to implement this I.e. a reliable quality supplier without any interruption.
Getting customer ratings for library services:
The analysis of the trends can help a lot here, since the need would be clear that in which discipline books are needed which are not. It is allocated in accordance with the need. As getting the proportionate percentage can help. Greater the unite demand is, the greater the deployment of funds should be there and vice versa.
The Financial Perspective:
Closure of small libraries that are only cost centers for library:
The trend analysis helps to generate a feature in managing the area of library. The library is mainly focused for the areas where the customer turnover is greater.
Sharing resources such as premises, transport and IT:
Collaboration can help many people at a time. As it could be cost saving for each and every one. Try to have sponsors for the vehicles that would help the advertiser and the library as well. Make an agreement with different institutes. As they would not have library in their premises and they fund this specific library for keeping those books for which they want their students to refer. This will help them to reduce the cost and management problems. In this way both will be benefited. The institute will get spare space for launching any other program and library will get the turnover by the students’ visit.
Hiring spaces to others:
Once the library will be providing the services at the part of the institutes this will be generating funds to it.
Raising funds through Community Volunteers and Charities:
For every section of library those persons would be approached who would be performing their research work in a particular discipline. This will benefit the researchers to have all those books to study and any other persons who would like to gain knowledge as well.
Offering university and colleges E-Books:
Hire some IT volunteers as they would be performing their internships for gaining their experience with the library for developing the system of IT for it. They would be given this line as project of their course in the supervision of their teacher to for a system of e-books. This should be made in a way that who every uses the website be charged very nominally for it. This will attract other people to study and library’ repute will be reimbursed.
Key Performance Indicators
The list of KPIs for Bexley Village Library are:
Educating staff in reference to modern changes
Educating staff will help them to stay up to date with library innovations, methodologies of record keeping and managing different activities in collaboration to each other
Hire specialized staff
Specialized staff can help them to have an edge and achieve a mile extra; they can put in to the use of their expertise as well.
Introduce e-books, journals and newspapers
Bexley library needs to cope with their lagging behind the today’s means and methods of running library, so in order to stay useful they defiantly need use of internet.
Hire multi task specialized staff
By this they can save on salaries and one single person of staff can help out with various tasks.
Increasing working hours
This will provide more availability of resources to users.
Offer services in accordance to age group i.e. children, adults and old people
Morning sessions for children as introduction to library, short course for adults and small get-togethers of old people can help them to earn more recognition.
Ask for users comments and suggestions
End users are always best source to judge one’s working.
Organize events to raise funds for development
Events such as painting competitions for children or poetic competitions can help in this manner.
Make library space available for hire for small congregations and public meetings
Congregations and public meetings can be organized at non-peak timings by renting out space.
Offer library sessions for kindergarteners along with their parents
Kindergarteners are always keen for stories, so such sessions can be organized for fun.