The purpose and objective of the report
A balanced scorecard assists in the development of organizational strategy by identifying what is essential to the organization. It brings the many viewpoints of the stakeholders together in a single communication channel. A more planned and regulated workload for employees can assist the business in avoiding overloading them with too many jobs, which may confuse workers (Das 2019). It also aims to incorporate a digital interface that can help an organization reach its internet audience.
Objectives of the BSC
- Enhanced Strategic Planning: When it comes to formulating and presenting strategy, the Balanced Scorecard is a valuable tool. Using a Strategy Map, managers may see how the company’s many strategic goals are interconnected in a meaningful way. This method guarantees that all stakeholders have the same understanding of the strategic goals that are being developed. In other words, essential enablers and drivers of future success have been identified to offer a holistic picture of the strategy’s overall performance.
- Better communication and Implementation of Strategies: For WCG, communicating strategy internally and externally is a lot simpler with a single overview of the entire plan. Since the beginning of time, humans have understood the power of a picture to convey a thousand words. Employees and external stakeholders can comprehend the strategy and take part in its implementation and assessment. It’s critical to remember that getting people to follow through with a strategy they don’t fully understand is difficult.
- Improved Project and Initiative Coordination: Projects and initiatives will be better mapped to WCG’s strategic goals using a Balanced Scorecard, ensuring that their efforts are directed toward meeting those top priorities.
- Better Access to Information for Managers: Companies like WCG benefit from using the Balanced Scorecard technique for determining key performance indicators (KPIs). Using this approach, firms may be confident they are measuring the important things (Hasan et al. 2017). Using a BSC strategy improves management information and decision-making, according to research.
- Improvements to the Monitoring and Analysis of Performance: The Balanced Scorecard may be a useful guideline when it comes to performance reporting and monitoring (Mailat et al., 2019). Management reporting focuses thus on the most important strategic issues and helps firms keep track of how well their plan is being implemented.
- Better Alignment of the Organization: An organization’s strategic goals may be better aligned by using the Balanced Scorecard. Organizations must guarantee that all business units and support departments work toward the same objectives to execute a strategy successfully (Terziev et al., 2017). With this in mind, incorporating the Balanced Scorecard into those departments will assist connect strategy with operations.
- Improved Process Coordination: When implemented correctly, Balanced Scorecards may aid in aligning various business functions with the organization’s strategic goals (Rafiq et al., 2020). This will aid in the development of a company that is firmly focused on its long-term objectives.
Balanced Scorecard for WCG: Specific and Relevant Performance Measures
- Financial point of view:
- Provide assistance to the community;
- Consistency and Development;
- Customer point of view:
- Financial supporters;
- Acknowledgment of Customers;
- Internal operations point of view:
- Increase Efficiency in Operation;
- Organized Communication;
- Learning and development point of view:
- Volunteer/Staff Training;
- Development and communication of information.
Why performance measures are crucial for WCG
Financial point of view
Profitable companies are those that often contribute to the social welfare of non-profits via donations and sponsorships. They use financial metrics on their scorecards; therefore, they want a comparable system for monitoring the success of their social investments in organizations (Hristov et al., 2019). The organization must assess and anticipate the support community’s stability and development to continue operating successfully.
Customer point of view
To be successful, a non-profit organization must serve at least two types of clients. This includes paying customers who make payments to the organization and receiving customers who benefit from non-profits. The two clients that non-profits interact with are financial contributors and receivers of charitable contributions. To appropriately handle the difficulties and concerns of the two kinds of consumers that the firm serves, the company should concentrate and pay attention to the critical areas.
Internal operations point of view
Customers are most satisfied when procedures such as cycle time, quality, personnel skills, and productivity are considered while developing internal metrics. WCG should also make an effort to identify and assess its organization’s core competencies and the vital technologies required to maintain its market leadership (McLoughlin et al., 2021). They should identify the processes and capabilities in which they must excel and devise specific measurements for each of those processes and competencies.
Learning and development point of view
The capacity of a corporation to innovate, develop, and learn is directly related to the value of the company. A firm may expand into new areas, boost revenues, improve operational efficiency, and, in short, grow and hence raise the stock price. This can only be done by launching new goods, providing consumers with more value, and increasing the value of existing items. Since donors cannot make contributions in person, they may make donations via online fundraising efforts, similar to how they can join the digital interface.
Difficulties in implementing the Balanced Scorecard within the organisation
The money needed to implement online advertising and automate the contribution process would be a major hurdle. This would need a budget, as well as the employment of extra workers, in order to be adequately executed. Budget constraints may cause a delay in implementing the measures that may have a detrimental impact on behavior. To conduct online marketing and automation initiatives successfully and efficiently, you’ll need to set aside money and prepare ahead of time.
Das, Pradip Kumar. 2019. “Impact of BSC on Corporate performance.” American Journal of Humanities and Social Sciences 7, no.1-9. Web.
Hasan, Rashed Ul, and Tai Mei Chyi. 2017. “Practical application of Balanced Scorecard-A literature review.” Journal of Strategy and Performance Management 5, no. 3: 87.
Hristov, Ivo, Antonio Chirico, and Andrea Appolloni. 2019. “Sustainability Value Creation, Survival, and Growth of the Company: A Critical Perspective in the Sustainability Balanced Scorecard (SBSC).” Sustainability 11 (7): 2119. Web.
Mailat, Diana, Dumitru-Alexandru Stoica, Monika Brigitte Surgun, Nicolae Ileana Traistaru, and Aurelian Vranceanu. 2019. “Balanced Scorecard vs. Dashboard: Implications and Managerial Priorities.” Academic Journal of Economic Studies 5, no. 1 (2019): 170-174.
McLoughlin, Kate, K. Lewis, D. Lascelles, and S. Nudurupati. 2021. “Sustainability in Supply Chains: Reappraising Business Process Management.” Production Planning & Control, February, 1–34. Web.
Rafiq, Muhammad, XingPing Zhang, Jiahai Yuan, Shumaila Naz, and Saif Maqbool. 2020. “Impact of a Balanced Scorecard as a Strategic Management System Tool to Improve Sustainable Development: Measuring the Mediation of Organizational Performance through PLS-Smart.” Sustainability 12 (4): 1365. Web.
Terziev, Venelin, Banabakova Vanya Kuzdova, and Marin Georgiev. 2017. “Opportunities of application of the balanced scorecard in management and control.” IJASOS-International E-journal of Advances in Social Sciences 3, no. 9.