PART system relates to entire level of organization for

PART C

 

Balance
scorecard is a popular tool around the world. There are a few disadvantages
found in this method although many organizations have embraced the balance
scorecard as a strategic planning technique. Rather than a short term solution,
it however requires a significant investment which is in long-term. It isn’t
something that everyone can take it too lightly as the company actually needs
to preserve a meeting to plan what is the best objective for the company to do
to attain a certain level in each of the four above areas. To make these
resolutions into reality, we need to work out all the objectives needed once we
have clear targets. The system relates to entire level of organization for its
effectiveness, and this required loads of work and money to be used to put into
effect.

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Secondly,
is employees’ resistance. Of course, not all are believers although the fact
that there a huge amount of people that are strong supporters of the balance
scorecard and its use in strategic making plans and procedure management. To
ensure that this BSC method effective, everyone in the organization needs to
follow and understand the concept of theory behind the use of it, and the way
the tool can be used for process improvement. There might be some employees and
even managers may feel that it is just a simple thing and oppose the
implementation. It might come true if the implementation requires employees to
go for training activities or invest additional time to learn and understand
about the balanced scorecard and its use. To achieve a maximum success,
companies need to have the support of everyone in the organization to make the application
of the balanced scorecard effective.

 

Next,
is data collection and analysis. A training will be needed to the users so that
they understand when and how to measure and examine data. Users need to be able
to spot the indicators and then implement an appropriate strategy ourselves
although BSC may provide useful information. Scorecard results can only be as
good as the underlying data that supports them. We will run the risk of getting
faulty consequences, if we don’t set appropriate data measures and don’t input
the right information consistently. This could prompt you to work on areas that
don’t need improvement and to disregard areas that do.

Lastly,
the BSC provides you an overall view of the four areas for concern in business
growth and development, these four areas do not paint the whole picture. The
financial information included on the scorecard is limited. Instead, to be
successfully carried out, the balanced scorecard ought to be part of a bigger
strategy for company growth that includes meticulous accounting methods. The
goals may be re-interpreted to the current state of affairs to meet success or
avoid failure, when a company is failing to fulfil its BSC goals. Altering the
acceptance criteria for a good balanced scorecard is less difficult than
altering the acceptance criteria for mechanical parts and therefore the reject
rate. Therefore, DBF must plan carefully on how they would like to handle this
situation to ensure smooth transition to BSC systems.