Factors Affecting The Successful Implementation Of Balanced Scorecard Accounting Essay

Factors Affecting The Successful Implementation Of fit wag Accounting EssayAim- The objective of this paper is to exhibit the factors poignant the sucessful implementation of a Balance scorecard.Introduction- A brief idea near reliefd scorecard,definition operation. literary productions Review and and Analytical framework- Detailed Analytical analyse of the researchers , on the factors affecting sucessful implementation of BSC.Conclusion A summary of the to a higher place topic and recommendations .BSCINTRODUCTIONBalance scorecard is a strategicalal homework and management dodge that is used extensively in blood line and industry, government, and non network organization worldwide to align business activities to the vision and dodging of the organization, amend internal and outside(a) communications, and monitor organization cognitive operation against strategic goals.The original balance scorecard was invented by Art Schneiderman(an independent consultant on the management of offsetes) in 1987 at analog devices, a mid coat semi conductor company Later on it was restructured by Robert Kaplan and David P. Norton in the use of balance scorecard in their 1992 article on balanaced scorecard.(The balance scorcard)The balance scorecard was made for the make bet preconditi onent in organizational proceeding and competitiveness. (Arthur M schneiderman)Traditional performance ginmills ar inadequate to measure performance and guide organizations in rapidly changing, composite economic environment. Organizations need to combine performance measurement to outline, and must measure performance in shipway that both encourage positive future publications and replicate past performance.Robert S. Kaplan and David P. Norton, among the proponents of these strategic concepts, give a better definition equilibrate scorecard provides managers with the instrumentality they need to navigate to future competitive success. Today, organizations argon comp eting in complex environments so that an accurate taking into custody of their goals and the methods for attaining those goals is vital. Balance scorecard translates an organizations mission and outline into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system.It retains an emphasis on achieving financial objective just alike accepts the performance push backrs of these financial objectives,(The Balanced Score Card Translating schema into Action, pp. 1-3)The introduction under foreshort circuitenn discusses first of all how the BSC evaluated with the course of succession the need for the same. and then in the literature review a thorough discussion and vantage point of the authors of articles are taken into rumination followed by a criticism. In the outcome a proper summary and what the research has produced allow be discussed foreground the splendour, need and factors affecting the successful implem entation of BSC would be discussed.In the close eleven years, balance scorecard has play an vital role for implementing schema and monitoring performance. Creating a system focused organization (the phrase coined by the founders of the Balanced Scorecard methodology) is a significant, challenging culture change for umpteen organizations. Success in achieving this change requiresRegular executive director support and involvement.Education, communication, and visibleness of the strategy and measurements of its effectiveness throughout the organization.To review the stragy so that constant feedback is obtained.Tools to enable non-technical users to understand the key drivers of the measures.Translation of the strategy to operational terms so that alignment to strategy and implementation of it occur at all levels of an organization. appendage of BSCWe hand over to view the organization from quatern perspectives in rear to push strategy to achieve organizational goals Financial perspectiveOrganisations objective entrust be to earn higher profits by applying all the resources . Kaplan and Norton regards traditional need for financial data.Customer perspectiveIn any business, enormousness on customer focus is relevant for organizational growth if the customers are not satisfied the revenues will be lowered and as a result return on investment will decrese.Internal business perspectiveThe internal process refers to quality production , timely language wich will retain the existing customers and also will improve to materialize new customersLearning and growth perspectiveHere employee is trained and move ,and improved learning skills are provided To improve the work process, which will improve the quality of the product and alsoTimely delivery.The four perspectives is shown below in form of graph Literature ReviewFactors affecting successful implementation of Balanced Scorecarddodge Implementation and entertain Here author has stressed the importance a bout formulation and implementation . Once the strategy has been devised, major hassle Is to implement the BSC Scorecard. The around frequent problem include underestimating the time inevitable for implementation and un looklable factors in the external environment.( Helen Atkinson pp.1443,1444)Another author (Ulf johanson et. Al) also argued about idea of BSC implementation.The concept does not allow for an open invitation to insert in learning and development process.Trying to force the objectives on another is risky. old management style, is another factor author has bought to the notice . Here he argues that without proper senior management support and delegation it is laborious to correctly implement balanced scorecard.Strategic catch systems Strategic ascendance system provides the short term targets that deliver unyielding term goals. Strategic control are required to provide a balance between long term organizational goals and short term operational demands. (Helen Atkinson pp.1446). Thus he sees that there is a need to establish co-ordinated strategic and management control objectives. Furthere more, he points that issues relating to employee and suppliers are not co-related to performance management. Translating vision into strategy,is difficult process as its time consuming focuses on much wider change in the organization.(Helen Atkinson pp.1449)Organizations that have successfully implemented the Balanced Scorecard have achieved peculiar transformations in their financial performance, in many cases vaulting to the top ranks in their industry groups.Many aspects of Balanced Scorecard development and deployment depend on effective use of technology to be successful. Numerous software packages have been developed to help automate the Balanced Scorecard, but it is very difficult to deliver the needed capabilities in a single software package. Therefore, the Microsoft Balanced Scorecard Framework has been developed to allow organizations to Develop and deploy a scorecard economically using an existing infrastructure.Manage and display the data and knowledge pertinent to Balanced Scorecards.Facilitate analysis of measures so that pep up corrective action can take place.The framework provides a comprehensive, flexible, toll-effective way to deploy the Balanced Scorecard and deliver superior returns on people, processes, customers, and technologies.Management involvement and endorsement- Without the full personal support and endorsement of the executive team the transformation would be impossible. Communication of Balanced scorecard needfully to be focused as ,it delivers top management ideas, views on strategy to lower level( Anthony A. Atkinson et al.)Floor level employees are the ones who will achieve the targets, so they should be aware of the objectives and targets provided to them.(Meena Chavan)Scorecard is prepared as one time event .In most cases, Top executive team spends much more time in aim and launching t he BSC, as a result there lacks whatever missing measures at the time of start of throw up and launch time. Here BSC implementation fails which lacks in considering the review of BSC. (Anthony A. Atkinson et al.)Critical analysis of the LiteratureReferring to Helen Atkinson on strategy implementation and control it is backed up in the sense that without proper implementation of the project, objectives will not drive further. Once the vision is set clear , proper strategy should be chalked out so that Objectives will be achieved without any hindrance.As Atkinson verbalize full involvement of top management is essential in order to achieve organizational goals with the help of balanced scorecard by adopting four perspectives.Morever, internal process plays a vital role in increase return on investments if, it is properly backed up by employee readiness and growth. Employees should be provided adequate training to do the job. Many, consultants criticizes that it does not provide a final score or view with proper recommendations or suggestions. It is a simply list of metrics. For Example employees cannot view their score with respective to their objectives. to the highest degree of the organisations follows the four perspectives and doesnt allow scope for external perspectives. They should take into consideration external factors according to the needs of the situation and change. Various researchers and authors have critically bought most important issues that will affect the implementation of BSC. We should take their consideration as a review so that BSC will run smoothly in achieving organisational objectiveIn balance between Goals and accountability- I agree with meena chavan, in the sense that all the people should take responsibility of the goals they are given. Unless they take accountability and responsibility goals will not be achievedThere are certainly all elements which forms the basis for a good scorecard , besides it is important to add some e xtra detail to the perceptions. The quick consideration of the scorecard should lead to a very specific understanding of the strategy of the organisation . Furthermore, it should not be over financial. Financials are usually,though not always,the measure of success or failure.The balanced scorecard is treated as a consultancy project. It is implemented as a consultancy project rather than management project. By treating it as a consultancy project , time is spent and also cost is increased. In addition, the senior management team will be overpassed , to whom their will be no idea about strategies, objectives of the organization.BSC viewed as short term project No organisation likes to deviate from the objectives and run the same for short period. They insists that whatever strategy they developed should work for long term. This is baseless factors.BSC should be developed as an instrument for change.To grasp the importance of intangible resources in the value creation process and mo bilize the attention and action of midway management , BSC should be developed with its emphasis on management control and non-financial indicators.ConclusionBalanced scorecard was designed to measure organizations performance against strategic goals. It use has been made by most of the fortune 500 companies. For designing of BSC four perspectives are important . Various researches have indicated that BSC should also include others factors in the perspectives such as environment, Job security. Focusing on one measurement of business success can lead to hazardous.In the Literature and books that I have reviewed, while designing the major factors that are liable for implementation are , formulating strategy,setting up of proper perspectives, formulation of team, communication of the Strategy and objectives and poor score card designs.Furtheremore, balanced scorecard approach requires some major changes in culture within the organization. The balanced scorecard requires understanding commitment and support from the top executive level. Different organizations have diametrical needs, markets, products and services For which balanced scorecard will differ. It has also to consider the various perspectives.Properly designed Balanced scorecard, will address the key problems with strategy implementation, the performance of the organization ,the communication, the role of middle management and existing control systems.Balanced scorecards have been implemented in corporations, government organizations ,non profit organizations and schools.In conclusion , balanced scorecard is a management system , which has outgo the traditional measurement system enables the organization to illuminate their vision and strategy and interpret into action..It provides feedback internal business external business process in order to continuously improve strategic performance and results.