Reference no: EM132223341

Please give a summary for below discusion:

Common shortcomings or drawbacks when measuring results in organizations are lack of vision and mission clarity within business departments (ladders and rings), and inability to link a company’s long-term goals with its short-term actions. Another problem is that most companies operational and management control systems are built around financial measures and targets, meaning that in most cases companies focus so much in their monetary position instead of the overall performance internally (employees) and externally (customers, shareholders).

What processes and measures are missing that are found in the balanced scorecard? How do those processes and measures help a company?

There are three traditional perspectives to help companies to not only track financial results but also evaluate overall performance. These processes are customers to achieve the organization’s vision they must have strong relationships with the customers. Internal business processes which embrace employees, customers, and shareholders, this process focus on satisfying their needs. If the company wants to be successful, it needs to take action and excel at keeping internal areas solid. The last is learning and growth which is basically the sustainability and ability to improve and learn from past experiences and competition.

Some companies emphasize so much on the short-term financial status leaving a gap between strategy development and its implementation to avoid these problems, the scorecard introduces four management processes that contribute to linking long-term strategic objectives with short-term actions. These four management processes are translating the vision, communicating and linking, business planning, and feedback and learning.

The first process is translating the vision which will help to clarify the vision and mission of the company to all employees. The second process is communicating and Linking which will reinforce communication methods as well as educate employees about setting goals and taking actions, as well as the rewards for meeting certain expectations and performances. Business Planning which will set targets, align strategic initiatives, allocates resources, and establish milestones. The last is Feedback and Learning which articulates the shared vision, supplies strategic feedback and facilitates strategic review and learning.