What Is Balanced Scorecard (bsc)IntroductionThe balanced scorecard (BSC) is a management accounting technique and it is developed as a reaction to changing information needs driven by a growing competitive environment. It relates current decisions and actions to long-term financial benefits (Kaplan, RS & Norton, DP 1992). It is used to evaluate business performance by a set of indicators (i.e. a financial, customer, business and organizational learning perspective). The difference between traditional management accounting systems and new developed techniques merely lies in the expansion of the type of management information they generate (Maisel, L 1992). Non-financial and qualitative information, such as quality and process times and more subject information on customer satisfaction and new product performance, are considered important aside the traditional financial related information. This paper aims to analyze the efficiency and effectiveness of management accounting techniques in an organisational setting (Kaplan, RS & Norton, DP 1996).
What is Balanced Scorecard (BSC)?The Balanced scorecard (BSC) was developed in the early 1990s by Robert Kaplan and David Norton. It is essentially a performance measurement system that connects employee behaviour to the organisations strategic objectives (Maisel, L 1992). The BSC includes the firms critical success factors in four perspectives that are financial performance; customer satisfaction; internal processes; and learning and growth (Blocher et al. 2010). The financial performance measures the profitability and market value, among others, as indicators of how well the organisation met its owners and shareholders. The customer satisfaction measures the quality, services, and low cost, among others, as indicators of how well the firm met its customers (Olve, NG & Sj¨ostrand, A 2002). The internal processes measure the efficiency and effectiveness with which the organisation produces the product or service. The learning and growth measures the organisations ability to
reinvent themselves, to adapt to the changing business environment, or to grow to meet growing needs or goals
to perform well. The SJ and JCC also provide information on the management system where the SJC and company also have an informed opinion on their decision-making processes through their own assessment of the organisation’s success and failure. The SBC has a unique opportunity to improve the quality and sustainability of its assets in a non-financial way and by improving the quality and sustainability of the organisational organization (Harmonand et al. 2004). If the organisation is prepared to address its shareholders, the SBC can provide their shareholders with an opportunity to gain the insight they need to take action (Kochin 1999). All of the major businesses, particularly the financial services sector, can expect to be affected by asset valuations that are negative. In a recent report on institutional investment, Møller and colleagues point to:
In the private sector financial and equity capital markets, the number of asset-value creation is rising rapidly, while global market share, which includes public sector capital including foreign exchange markets, is declining at a rate faster than that in the rest of the country. The current state of the global finance sector is expected to become more challenging starting between 2020 and 2050. (The U.K. Treasury’s Annual Financial Results for the period 2012 to 2025, a report produced by the U.K. Treasury, has been released on 22 May 2013.)
We recognise that asset-value growth does not always mean a decrease in return for capital, and that its role to manage a business must be kept at an un-perceived level. We recognise that market dynamics mean that the level of asset use may be relatively volatile (Molloy et al. 2010), and that asset values can influence the quality of the financial services being delivered (Owen et al. 2009; Schuman et al. 2004). The SBC and firm may also be expected to see declining growth in asset-value, which can have detrimental effects on their own investments and their earnings/transactions. However, it seems likely that asset valuations remain within the range of the normal performance of the fund. It also seems very likely that asset valuations of corporate assets, especially in the private sector, will be less than market-average due to their positive impact on its performance and profitability.
The SBC is working on a new research design for the SBC and firm and is committed to working in collaboration with the new research design team.
The fund is pleased to announce that its long-term sustainability strategy on account of its ongoing growth, strong investment performance and continuing positive and non-sustainable management, has been successful. The fund and the newly established SBC will continue to focus on increasing our portfolio of the SBC, in line with our strategic objectives in this space. Funds are now committed to increasing their overall portfolio size and have also identified specific positions for further work. However, we remain committed to growing the SBC in line with our overall business goals. There is also an investment priority at S-Bank, to further improve our capacity to meet the growing requirements. SBC’s global strategy is to become an active provider of high quality long-term products to SBC customers, and to share on this long term strategic objective. The SBC is committed to continuing to work with its private equity and private equity firms, to continue work related and professional development of our strategic goals in financial and governance and to identify new work areas that we believe can help further address our investment objectives (Dong and Devereux 2009). In a sign of how confident SBC can be about our commitment to the long-term sustainability, in September 2011 SBC and its management met with its Board. We were pleased to see that the board was proud of the direction of both our Fund and for the positive and positive effects of the investment in the fund’s long-term sustainability strategy. The Board of SBC reaffirmed our longstanding commitment to building a sustainable value chain based on long-term investing and on the work of our team in our long-term, independent and accountable growth efforts. We have been fortunate to have experienced significant growth in both financial and governance objectives during the last three years (Dong and Devereux 2009). Since we began the investment process and the Board took the necessary action to ensure that these results are aligned with our long-term objectives, the SBC has become a strong, well-positioned and highly valued asset class. The Fund’s long-term sustainability strategy was further reflected in the SBC’s decision to adopt a higher index for the current year compared to 2010 (see paragraph 1), and to further engage stakeholders in our policymaking process and development strategy (see paragraphs 2 and 3). It is difficult to speculate on whether we will achieve such a level of strategic engagement (i.e., a more robust, multi-sectoral strategy). However, it is clear that the SBC’s portfolio has been the most productive as of the last five years. The SBC has also proved to be both a productive asset class investor and a very profitable company. We believe that our long-term objective to grow our short-term strategy does reflect the SBC’s very positive, diversified portfolio characteristics. We believe that the strategic objectives that we set for our long-term growth team will ultimately result in the SBC becoming a well-positioned and highly valued hedge fund. As a result, we believe that our long-term sustainability strategy will allow SBC to achieve further sustained diversification and continue to be an active, productive asset class investor.