Management and the Balanced Scorecard

Carlos Mora Vanegas

What motivates knowledge workers is the same thing that motivates volunteers ... ... need, above all challenges. Peter Drucker

Summary

Management can not ignore the scope and impact generated by using its management within the Balanced Scorecard (Score Board)

It is known that the measurements are important, if you can not measure, you can not manage it. The measuring system of a company's behavior affects a lot of people, both inside and outside the organization. If companies are to survive and thrive in the competence of the information age, they must use measurement systems and management, derived from their strategies and capabilities. Unfortunately, many organizations adopt strategies regarding customer relationships, core competencies and organizational capabilities while motivating action only financial indicators. The balanced scorecard retains financial measurement as a critical summary of managerial performance, enhances a broader set of integrated measures that link current customer, domestic prices, employees and the performance of systems or financial success long-term.

General, basic considerations, advantages

Historically, the measurement system has been financial companies, in fact, accounting has been called the "language of business." During the Industrial Revolution spawned giant textile companies, railroads, steel, machine tools and retail sales, the innovations in measuring the financial performance of these organizations played a vital role in its burgeoning growth, and financial innovations such as measuring return on investment and cash budgeting and operating, were critical to the success of the company from the early twentieth century such as Dupont and General Motors.

The balanced scorecard retains financial measurement as a critical summary of managerial performance, to enhance a broader set of integrated measurements that link current customer, internal processes, employees and the performance of systems with the long-term financial success.

It also provides executives a comprehensive framework that translates the vision and business strategy in a coherent set of performance indicators. Many companies have adopted mission statements, to communicate values ​​and beliefs to all employees about the mission statement of fundamental beliefs and identify target markets and core products that help flourish macroeconomic imbalance that are faced by small and medium enterprises.

An important element in this process has been the measurement of performance (performance) of the business and the balanced scorecard, is to integrate into a holistic view of business in multiple dimensions (called "Perspectives"), the set indicators that had been handled separately under the partial views that managerial paradigm gave us. A major contribution of the methodology is that these indicators do not make sense if they are not measuring the achievement of the strategy, ie the achievement of strategic business objectives.

These dimensions allow you to see the business in four perspectives. The Learning and Growth perspective that focuses on the foundations of current and future success of the business: People, Technology and Information, these enable the organization to greater achievements in the perspective of internal business processes, which emphasizes the performance of key processes that drive the business as core components of its value chain. The third perspective lies in the perception of customers about the contribution the company gives them the courage and finally proposed a financial perspective shows the results that meet shareholder expectations of the business.

Management must be very mindful of the benefits to be derived by applying the Balanced Scorecard and consider that:

The balanced scorecard is more than a new measurement system. Innovative companies use the Balanced Scorecard as a framework and organizational backbone for their procesos.Las companies can develop a balanced scorecard starting with fairly limited objectives: to obtain, clarify, obtain consensus and focus on its strategy, and then communicate that strategy throughout the organization. However, the true power of the balanced scorecard transforms appears when a system of indicators in a system gestión.El Scorecard fills the gap in the majority of management systems: the lack of a process implement systematic and obtain feedback on estrategia.Los management processes around the balanced scorecard allows the organization to match and focus on the implementation of long-term strategy scorecard plazo.El expands set of objectives of the business units beyond the financial indicators. The company executives can now measure how their business units create value for their current and future customers and how they must enhance internal capabilities and investments in people, systems and procedures that are necessary to improve its future work.

The Scorecard captures the critical activities of value creation, created by skilled and motivated employees to retain organización.Mientras through the financial perspective, an interest in short-term performance, the scorecard shows inducers clearly of value to financial performance and competitive senior long term.

In short, it suggests that we view the organization from four perspectives, each of which should answer a particular question:

Development and Learning (Learning and Growth): Can we continue to improve and create value? International Business (Internal Business): What must we excel? Customer (Customer): How do customers see us? Financiera (Financial): How do we see in the eyes of shareholders? Conclusion Many achievements can be obtained using the Balanced Scorecard, which as Wikipedia reminds us, is a strategic management system of the company, consisting of:

Formulate a strategy and clear. Communicating the strategy throughout the organization. Coordinate the objectives of the various organizational units. Connect with financial planning goals and budget. Identify and coordinate strategic initiatives. Measure the performance in a systematic way, proposing appropriate corrective actions

* Teacher Faces graduate, University of Carabobo. EXATEC

Annotations of the chair Topics modern management, specialty Quality Management and Productivity, Virtual Classroom 2010