Strategize Your Company’s Success Through the Balanced Scorecard
During the recession, many companies were forced to shut down or to lay-off some workers, and for some, allowed themselves to be “saved” by more stable companies. Starbucks is one example. Due to its rapid expansion over the years, Starbucks was not able to cope with the effects of the recession. It expanded so fast that it was able to open stores in the United States alone, and probably a little bit more overseas. With the economy’s decline, Starbucks’s sales also declined. In the past years, many analysts and businessmen predicted that Starbucks will not survive the recession. Starbucks survived, nonetheless, despite all the negative readings they get from various people.
Companies nowadays have learned so much from the recession, some learned how to expand slowly, some learned how to use various management systems to further enhance their company’s performance. A management system is a framework of processes and ways used to ensure that an organization can fulfill the tasks required to achieve its goals. A complete system includes accountability and a schedule for various activities to be completed, as well as auditing tools to implement corrective actions in addition to scheduled activities, which mat create an upward spiral of improvement.
A balanced scorecard system is one example of a management system. It is a strategic planning ang management system used extensively by various business and industry, government, and nonprofit organizations to help align the organization’s activities to the vision and strategy of its administrators. The word “balanced scorecard” was coined in the early 90s, it originated from the works of Dr. Robert Kaplan and David Norton, as a performance measurement framework that added various strategies that can be used by different organizations worldwide. The balanced scorecard also helps in transforming an organization’s strategic planning from an attractive but passive document into the marching orders for the organization. It also provides a framework that provides performance measurements and in identifying the various weaknesses of the company. Subsequently, the balanced scorecard also helps to increase your profit.
There are various ways to increase your profit, one way is thru cutting cost. In this method one must learn to justify his expenditures and keep operating costs as low as possible. Another is to not to advertise too much, you can increase your profit this way because it will help minimize the expenses that the company has to incur in the long run. Lowering the price of the product may also help to increase your profit, for it will cut the costs of the production of the product.
In utilizing the various management systems, one can help in improving the quality and the services offered in ones company. By doing so, the company and its customers are in a win-win situation, wherein the company, can offer quality products or services at a lower cost, and at the same time makes the customer happy by its superb products and services.
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