Balanced Score Card Article Example | Topics and Well Written Essays - 3000 words

Balanced Score Card - Article Example Learning and Growth perspective 12 6.1 Objectives 13 Increase the skills and knowledge of the employees 13 Satisfaction amongst the employees 13 Reduce the attrition rate of the employees 13 6.2 Measures 13 7. Initiative 14 REFERENCES 18 1. Balanced Scorecard The balanced scorecard is a tactical arrangement and management system that is extensively used in industry, government, business and non-profit organization all over the world in order to align the activities of the business to the strategy and vision of the of the organization, enhance the external and internal communication and monitor the performance of the organization against the predetermined strategic goals. This has been created by Professors David Norton and Robert Kaplan as a framework for performance measurement that adds traditional financial metrics with the non-financial performance measures that provides the executives and the managers with a balanced view of the performance of the organization. The balanced scor ecard model is used by the organization to get a clear perspective about what the organization should measure in order to balance the financial perspective in operation with the organization of strategic plans. The balance scorecard changes the strategic plan of the organization from a striking but passive document into an active one for the daily basis. It is a framework that not only provides the executives of the company with performance measures but also helps them in identifying and planning what can be done. It makes the executives capable of framing strategies. The balanced scorecard claims to consider an organization from four perspectives and look for developing metrics, collecting the data and analyzing them. The four perspectives are financial perspective that looks at the return on equity, cash flow, sales and income growth. Second is the customer’s satisfaction perspective that measures on time delivery, product development, defect levels and warranty support. Th ird is the business process perspective that measures the efficiency of the internal business processes that is measured via cycle time, quality, productivity and downtime. Lastly learning and growth perspective that measure organizational and innovation learning measured performance on the dimensions like product development cycle, technological leadership, operational improvement etc. This study focuses on the measuring the performance of marketing unit of McDonalds through balanced scorecard approach. Figure 1: Four perspectives of Balance Score Card (Source: Kaplan & Norton, 1996, p. 76) 2. McDonald’s McDonald’s started their journey in the year 1955 and since then they have been proudly serving some of the world’s most favorite food (McDonald’s, 2013a). They have not just managed history but have created it. Currently McDonald’s is operating as the world’s biggest retailer in foodservices with over 34,000 local restaurants offering food to about 69 million people in around 118 countries per day. The company has employee strength of 1.8 million. About 80% of all the existing restaurants of McDonald’s are run by franchisee (McDonald’s, 2013b). They started â€Å"from drive-thru restaurants to Chicken McNuggets to college credits from Hamburger U and much more.† Ray Kroc dreamt of starting a restaurant chain that will be famous for its food which provides uniform