Balanced scorecard of accounting Essay
Document Type:Essay
Subject Area:Accounting
When embracing such policies, managers are obliged to set short term and long measures to ensure sustained growth and development. Different entities have embraced short-term measures such as return-on-investment, operating incomes, and gross profit. Balanced scorecard as measurement tool provides management with a comprehensive framework to translate organizational strategic visions into logical outcomes. Besides measuring performance, the balanced scorecard is a managing system which motivates excellent improvements in product, process, customer, and market development (Drury, 2018). Balanced scorecard presents management with four diverse perspectives to evaluate performance in an organization. These make Saturn company to have balance performance in its activities. An increased profit due to good management and balanced performance is another reason to embrace scorecard as measuring tool at Saturn Company.
Innovation and customization of operating system stimulate high efficiency thus leading to mass production of goods and service at minimal costs (Perkins at el, 2014). Balanced scorecard enables managers to communicate business strategy to all workers in the organization and thus making them understand their responsibilities and obligation. This process establishes an efficient structure through which managers disseminate the long-term visions of the business to all employees and thus stimulating alignment of the personal and corporate goal. Saturn company, therefore, is obliged to comply with customers desires and needs when they are producing new products on the market (Horngren at el,2014). To achieve this, they need to establish customized sites where customer’s grievances and complaints can be viewed for further responses.
Faster response rates help customers to gain confidence and trust which is essential for company reputation and thus increasing customer retention rate. Distributing customer surveys booklets or online is one of the fundamental tools which Saturn Company need to establish to monitor customers satisfaction. Financial perspective The main reason for the existence of most business entities is to maximize profit and optimize shareholders wealth. Superior services are geared toward creating value to customers and shareholders. Saturn Company needs to offer training to improve knowledge and skills of the workers. Many firms encounter a challenge which hinders them from growth due to incompetent workers who lack skills to adapt and operate the new system. Learning is a continuous process and thus keeping employees updated with current technologies helps them to boost their interpersonal motivation leading to higher performances in the organization (David, 2014).
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