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Discussion—Applying Balanced Scorecard
In many cases, managers end up in trouble as they direct their focus exclusively on cost savings. Cost cutting is always emphasized, but other impacts, such as decreased quality, can be overlooked. These overlooked impacts can have a significant effect on the revenue and profitability of an organization. The balanced scorecard is a measure to assure that management is not exclusively driven by cost, but balanced with other measures that also can significantly influence the performance of an organization.
Select a service industry organization of your choice. Complete the following for the selected organization:
Recommend at least two performance measures in each of the balanced scorecard categories.
Explain each of your recommendations.
Using these measures as examples, explain how use of the balanced scorecard can increase the economic value added within the organization.
Write your initial response in 300–500 words.
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