Question

PLEASE USE EXAMPLES AND DETAILS

Your boss recently attended an accounting seminar at which the balanced scorecard was discussed. He has asked you to prepare a presentation for the next manager’s meeting about the balanced scorecard and how the company might adopt it. In your presentation, you should complete the following:

• Define the elements that might be presented in a balanced scorecard.
• Explain how the elements will be used.

Answer 1

The elements that might be presented in a balanced scorecard are

1 Financial perspective element

It concerned about business activity  from a financial viewpoint and accounting practices of the business it includes cash flow, return on capital and investment.

Under financial perspective elements include

* Financial result and growth of the company

* Increase/Decrease in cash flow

* Net interest margin

* Understanding the profit margin. And more

2. Internal business processes perspective element

It deals with how managers deals the business. processes of the organisation. It engages the organisation's mission with its daily business operations.

* Business decisions and approvels element

* Understanding customer relationship management

* Improving work culture and higher employee confidence.

3 Customers perspective element

It helps with developing and determine levels of  

customer satisfaction and understanding customer need.

* increase customer satisfaction

* Retention of key customer

* High quality service

* Customer loyalty

4 Learning and growth perspective

   It helps in employee training and organisational improvement. It believes that knowledge is the key important resource that managers use to guide the business.

* Knowledge management

* Develop critical skills

* Understand company goals and personal goals.

* Helps to know employee satisfaction.