”

Assignment:

Note: there are helpful guidance and support materials posted for your use in this
week’s conference area. An attached Power Point presentation explains the
balanced scorecard.

1. Build a Balanced Scorecard for the unit of the organization
for which you work, or have worked. Unless you are in senior management,
focus on the unit with which you are most familiar rather than the
organization as a whole. Identify the strategic objectives of the entire
organization and the secondary objectives for the unit. Develop three
specific objectives within each of the four perspectives for the unit. Each
objective should have at least one quantified target metric associated with
it.

It
is essential to understand what metrics are. Be sure to study the next
section of this Conference entitled “”More Information on metrics””
The specific information needed to calculate each metric should be discussed.
For each metric discuss the appropriate target value and the actions that
need to be taken to achieve the target. The paper should be no more than 15
pages, including the reference list, and be formatted in accordance with the
APA guidelines as modified for the MBA program (.umuc.edu/mba/public/MBA-apa.html””>http://info.umuc.edu/mba/public/MBA-apa.html).
Please format your paper in Microsoft Word as a XXX.doc or XXX.rtf file, and
place the paper in your assignment folder.

2. By Friday night, create a separate main topic in the Week 10
conference, using your name in the title and post an Executive Summary in the
text box. Do not include any confidential information in your Executive
Summary, because your Executive Summary is not private. But you can include
confidential information in your paper because your assignment folder is
private. Comment on your classmates’ Executive Summaries in the Week 10
conference.

Metrics
Develop three specific
objectives within each of the four perspectives for the unit. Each objective
should have at least one quantified target metric associated with it. So
your table should contain 4 perspectives, each with 3 specific objectives,
and a target value of the metric for each objective.
If you would like to see
a sample table of metrics, here is one example:

Perspective

Objective

Metric

Target
Value

Financial

Revenue
Growth

Operating
Profit Growth

Short-term
Solvency

Long-term
Solvency

Annual
Rate of Growth

%
EBIT/Sales

Current
Ratio

Long-term
Debt/Equity

>
6%
>
7%
>
2.0
<
30%

Customer

Increase
Number of Customers

Maintaining
Transaction Size

Improve
Customer Satisfaction

Annual
rate of Customers Increase

Average
Transaction Size

Median
Score: Customer Survey

>
5%

>
$600
>
90%

Internal

Product
Improvement

Ratio
of New to Old Products

Maintain
Market Share

%
R&D Expense to Revenue

Ratio
of New to Old Products

Market
Share %

>
4%

>
8%

>
24%

Learning

Employee
Training

Employee
Turnover

Employee
Compensation

Annual
Hours of Employee Training

Employee
Turnover

Average
Compensation

>
30,000

<
3%
>
$38,000

Sample
Table of Metrics for an Example Business Unit

The Balanced Scorecard
Reading
(Recommended but not required)

Epstein,
M.J., & Manzoni, J. (1997, August). The balanced scorecard and the
tableau de bord; Translating strategy into action.Management Accounting, 79(2).(A)
Kaplan,
R.S., & Norton, D.P. (1996, January/February). Using the balanced
scorecard as a strategic management system. Harvard Business Review, 74(1). (B)
Kaplan,
R.S., & Norton, D.P. (1996, Fall). Linking the balanced scorecard to
strategy. California Management Review, 39(1). (A)
Kaplan,
R.S., & Norton, D.P. (1996, September/October). Strategic learning
& the balanced scorecard. Strategy
& Leadership, 24(5). (A)

Videos explaining the Balanced Scorecard

.youtube.com/watch?v=_A02vKgE4NQ&feature=related””>http://www.youtube.com/watch?v=_A02vKgE4NQ&feature=related

.youtube.com/watch?v=p0SrIb5qcMU&feature=related””>http://www.youtube.com/watch?v=p0SrIb5qcMU&feature=related
.youtube.com/watch?v=iI8ZmLwqElI””> http://www.youtube.com/watch?v=iI8ZmLwqElI
**************
There
are very useful articles on the Balanced Scorecard at:
.netmba.com/accounting/mgmt/balanced-scorecard/””>http://www.netmba.com/accounting/mgmt/balanced-scorecard/

.quickmba.com/accounting/mgmt/balanced-scorecard/””>http://www.quickmba.com/accounting/mgmt/balanced-scorecard/

.dmreview.com/article_sub.cfm?articleId=5788″”>http://www.dmreview.com/article_sub.cfm?articleId=5788.
.wikispaces.com/+Balanced+Scorecard,+BSC+and+Performance+Improvement””>http://organized-change-consultancy.wikispaces.com/+Balanced+Scorecard,+BSC+and+Performance+Improvement
**************
A
useful article on problems with strategic planning is at the following link:
.mckinseyquarterly.com/article_page.aspx?ar=1819&L2=21&L3=37&srid=17&gp=0″”>http://www.mckinseyquarterly.com/article_page.aspx?ar=1819&L2=21&L3=37&srid=17&gp=0

*************
The Balanced Scorecard is the most widely used system of
performance management, as evidenced by the following two studies.
1) Cranfield University, a well-know and well-respected U.K.
institution of higher learning found that 75% of organizations with formal
performance management systems use a system based on the Balanced
Scorecard. Marr, B. (2004). Business
performance management: current state of the art. Cranfield School of
Management and Hyperion.
2) The Balanced Scorecard has become by far the the leading
system for managing company performance, outdistancing systems based on
quality management (such as six sigma) and financial management (such as
Economic Value Added, known as EVA) according to Lawson, R. et al (2008). Scorecard Best Practices: Design, Implementation and Evaluation.
Hoboken NJ: John Wiley & Sons, Inc. pp. 59-60.

Assignment: Note:
there are helpful guidance and support materials posted for your use in this
week’s conference area. An attached Power Point presentation explains the
balanced scorecard.
1. Build a Balanced Scorecard for the unit of the organization
for which you work, or have worked. Unless you are in senior management,
focus on the unit with which you are most familiar rather than the
organization as a whole. Identify the strategic objectives of the entire
organization and the secondary objectives for the unit. Develop three
specific objectives within each of the four perspectives for the unit. Each
objective should have at least one quantified target metric associated with
it.
It
is essential to understand what metrics are. Be sure to study the next
section of this Conference entitled “”More Information on metrics””
The specific information needed to calculate each metric should be discussed.
For each metric discuss the appropriate target value and the actions that
need to be taken to achieve the target. The paper should be no more than 15
pages, including the reference list, and be formatted in accordance with the
APA guidelines as modified for the MBA program (.umuc.edu/mba/public/MBA-apa.html””>http://info.umuc.edu/mba/public/MBA-apa.html).
Please format your paper in Microsoft Word as a XXX.doc or XXX.rtf file, and
place the paper in your assignment folder. 2. By Friday night, create a separate main topic in the Week 10
conference, using your name in the title and post an Executive Summary in the
text box. Do not include any confidential information in your Executive
Summary, because your Executive Summary is not private. But you can include
confidential information in your paper because your assignment folder is
private. Comment on your classmates’ Executive Summaries in the Week 10
conference. Metrics Develop three specific
objectives within each of the four perspectives for the unit. Each objective
should have at least one quantified target metric associated with it. So
your table should contain 4 perspectives, each with 3 specific objectives,
and a target value of the metric for each objective. If you would like to see
a sample table of metrics, here is one example: Perspective Objective Metric Target
Value Financial Revenue
Growth
Operating
Profit Growth
Short-term
Solvency
Long-term
Solvency Annual
Rate of Growth
%
EBIT/Sales
Current
Ratio
Long-term
Debt/Equity >
6% >
7% >
2.0 <
30% Customer Increase
Number of Customers
Maintaining
Transaction Size
Improve
Customer Satisfaction Annual
rate of Customers Increase
Average
Transaction Size
Median
Score: Customer Survey >
5% >
$600 >
90% Internal Product
Improvement
Ratio
of New to Old Products
Maintain
Market Share %
R&D Expense to Revenue
Ratio
of New to Old Products
Market
Share % >
4% >
8% >
24% Learning Employee
Training
Employee
Turnover
Employee
Compensation Annual
Hours of Employee Training
Employee
Turnover
Average
Compensation >
30,000 <
3% >
$38,000
Sample
Table of Metrics for an Example Business Unit The Balanced Scorecard Reading
(Recommended but not required) Videos explaining the Balanced Scorecard .youtube.com/watch?v=_A02vKgE4NQ&feature=related””>http://www.youtube.com/watch?v=_A02vKgE4NQ&feature=related .youtube.com/watch?v=p0SrIb5qcMU&feature=related””>http://www.youtube.com/watch?v=p0SrIb5qcMU&feature=related .youtube.com/watch?v=iI8ZmLwqElI””> http://www.youtube.com/watch?v=iI8ZmLwqElI ************** There
are very useful articles on the Balanced Scorecard at: .netmba.com/accounting/mgmt/balanced-scorecard/””>http://www.netmba.com/accounting/mgmt/balanced-scorecard/
.quickmba.com/accounting/mgmt/balanced-scorecard/””>http://www.quickmba.com/accounting/mgmt/balanced-scorecard/
.dmreview.com/article_sub.cfm?articleId=5788″”>http://www.dmreview.com/article_sub.cfm?articleId=5788. .wikispaces.com/+Balanced+Scorecard,+BSC+and+Performance+Improvement””>http://organized-change-consultancy.wikispaces.com/+Balanced+Scorecard,+BSC+and+Performance+Improvement ************** A
useful article on problems with strategic planning is at the following link: .mckinseyquarterly.com/article_page.aspx?ar=1819&L2=21&L3=37&srid=17&gp=0″”>http://www.mckinseyquarterly.com/article_page.aspx?ar=1819&L2=21&L3=37&srid=17&gp=0
************* The Balanced Scorecard is the most widely used system of
performance management, as evidenced by the following two studies. 1) Cranfield University, a well-know and well-respected U.K.
institution of higher learning found that 75% of organizations with formal
performance management systems use a system based on the Balanced
Scorecard. Marr, B. (2004). Business
performance management: current state of the art. Cranfield School of
Management and Hyperion. 2) The Balanced Scorecard has become by far the the leading
system for managing company performance, outdistancing systems based on
quality management (such as six sigma) and financial management (such as
Economic Value Added, known as EVA) according to Lawson, R. et al (2008). Scorecard Best Practices: Design, Implementation and Evaluation.
Hoboken NJ: John Wiley & Sons, Inc. pp. 59-60. “