The balanced scorecard is a useful tool in strategic management and planning. The framework is used extensively across the industries. The primary aim is to align activities to the strategy and vision that an organization pursues. Similarly, the framework focuses on improving both external and internal channels of communication as well monitoring the performance of an organization based on the strategy of the business. The focus on non-financial aspects presented by the framework is crucial in giving a balanced view of the performance of organizations.
The balanced scorecard presents a method that measures performance and helps planners to identify what should be measured. The system is also significant as it enables organizations to clarify their strategies and visions, an aspect that paves the way for action. The framework is critical in providing feedback on internal and external business outcomes. The overall mission is to improve the organizational performance.
However, the balanced scorecard factors are assessed in traditional aspects, such as financial measures. In recognition that there are other important aspects that help in measuring performance, the framework underscores the need to focus on investment in the suppliers, customers, employees, technology, processes, and innovation.
Assessing SAS Inc. Using a Balanced Scorecard
Under the framework of the balanced scorecard, the focus is on alignment of activities to both the vision and strategy of the organization. The other elements border on the improvement of the internal and the external environment in regards to communication and monitoring performance.
The company has an objective of improving performance. To achieve such a goal, the company has an innovative strategy. The company invests in research work heavily towards achieving the goal. This shows that there is an alignment between objectives and strategies. It is also necessary to examine the level of congruency between the vision and the strategies. Apple’s vision is to offer a unique customer experience to customers. In order to achieve such a goal, it is necessary to invest heavily in research in order to meet the customers’ expectations. It is also worth noting that the company has successfully aligned research and development and its development initiatives.
The four elements that include: customers, financial wellness, international business processes and learning and growth are also accounted for. In regards to the financial aspect, the Apple Company has consistently posted positive results ever since it became a world leader in the electronics industry. Similarly, its customer orientation as indicated by the pursuit to manufacture the products that offer a unique experience supports the vision of the company. Referring to the international business processes aspect, the central issue is how the company handles its supplies and distribution chains. It is evident that the company has a complete control of the chains, an aspect that supports its vision as postulated in the balanced scorecard.
Grid of objectives
Increase its revenues
Level of income to the company
Increase the company income by 20% in the following six months
Increase production and sales
Improve customers’ experience
Levels of satisfaction as indicated by customers referred to the company
Increase the number of customers referred to the company by existing customers
Improve the quality of products by conducting research
Improve workers welfare
Salaries and associated benefits
Increase the perks by 20 percent in a year
Request customers to rate their experience using the software
Increase relevancy of workers
20% workers enrolled in business schools
Register workers for business courses
The four attributes: financial, customer, internal and learning are critical in the success of an enterprise. The case of SAS is instrumental in highlighting the assertion. The objectives of SAS are primarily business driven. For instance, it is indicated that the company is concerned with maintaining its high levels of productivity based on research and development in order to generate more revenues. The objective of generating high revenues is instrumental towards guaranteeing the attainment of the other objectives. After raising revenues, the company is able to increase customer experience by investing part of its revenues is research to increase the quality of products. However, the quality of products depends on internal factors such as the working conditions of the workers. Based on this, the company has done well by harboring an objective of improving the working conditions. Thus, the company has an objective to sustain its global dominance. Similarly, the company learns in order to improve its operations. In this regard, learning is initiated through research. By engaging in the company, the company is in a position to increase sales. Thus, the company also has an objective of increasing its sales. The company’s strategy entails reducing the negative changes while maximizing the positive ones. The company’s strategy is diversification, which entails supplying electronic products and complementary products. The company also focuses on ensuring that customers get the best experience when using its products. The company focuses on developing unique products. In order to ensure success, the company has a policy of continuously investing in research and development.
Determining the consistency of objectives, mission, policies and strategies is an arduous task. Since the SAS’s group has a mission of uniqueness, the objective of giving customers a lasting experience, has adopted a policy to fund its objectives and has various strategies to achieve each objective, it is conclusive that there is consistency. The aspect of sustainability also implies that the company’s goals are consistent with both internal and external environmental expectations.
In current times, technology has assumed a great significance. Technology is a key attribute in the production process. Thus, the extent, to which an organization succeeds, is to some extent dependent upon technology. Thus, corporate performance may be a reflection of the level of technology that the company employs.
The interplay between basic, applied and engineering research affects the appropriateness of corporate strategies as well as missions. Given the weight the company places on research and development, it is discernable that the primary goal of the company is to achieve its mission based on its basic, applied and engineering research. Research and development present a significant attribute in the production process. Research and development allows the company to produce high-level products to the market. The production of high quality products endears the company to customers. As a result, it is held that research and development allows the company to enjoy a comparative advantage in the industry.
The association among the objectives is clear based on the idea that they are geared towards the same goal of attaining organizational success. Overall, the objectives are complimentary since they are all related to the vision and mission statement of the company. Based on this evidence, no earlier objective is revised. Based on the evidence presented in the paper, the balanced scorecard is a critical tool that aids in the assessment of the performance of organisations.