Essay on Balanced Scorecard: Measuring Internal and External Performance

Introduction

The balanced scorecard is a metric used by managers to improve and identify the internal business functions of a business, and the results yielded through external outcomes (Romeike, 2012). In most cases, the scorecards are used to provide and measure feedback to companies. The method also uses data collection to give quantitative analysis used by executives and managers to interpret and gather the information in making the company's decisions.

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The models used in the scorecards also reinforce good behaviors in firms by isolating the areas that need to be assed. The four regions also called the legs to involve growth and learning, finance, customers, and business process. The balanced scorecard can also be used to attain measurements, goals, initiatives, and objectives, which are essential to the functions of the business (Romeike, 2012). Organizations, therefore, quickly identify the issues that hinder their performance and outline strategic plans facilitated by future scorecards.

The importance of the balance card in the control function is that it offers accurate information to the company when viewing the objectives. Any company that uses the scorecard to initiate strategies has a clear view of where value is added (Romeike, 2012). Also, the scorecard measures the company's financial accounting records to evaluate the performance. After some time, the data collected shows if the trend incorporates both qualitative and quantitative measures in long and short term goals when evaluating both the employees and the company at large.

The Balanced Score Card: The Financial Perspective of Target Corporate

The first goal initiated by Target in this perspective is by creating an excellent place for the team members by investing in leadership roundtables, seminars, and events to assist them to include their strategies that drive their diversity (Aluchna, 2013). The measures put in place to facilitate this goal is by working closely with other investors to get the opportunity of being invited for training whenever there are new changes in the market.

The second goal for Target corporate is by enhancing its impact through the collaboration of various stakeholders in the communities where their businesses are situated. The first measure applied is by engaging partners to improve their sourcing practices, help them maintain the brand, and also to elevate the worker's well-being to higher ethical standards (Aluchna, 2013). The second measure the company has taken is by collaborating with other organizations to connect with experts that are aligned with their social and environmental commitments.

Conclusion

Improving the financial aspect of a company is done through the development of learning and innovation. The financial perspective is considered to be necessary because of customer satisfaction, customer market, the attitude of employees, shareholder value, and the essential skills of learning and growth perspectives and internal processes. Shareholders, in this case, value this aspect, not for the performance but because it measures the financial results. The reason behind this claim is because the information is presented in an economic outlook and hierarchical pyramid.

The importance of the first goal is that it will assist in managing the employees because it set the right tone in the environment. The idea also creates a positive attitude at workers to yield better results for the company and employees. The second goal will facilitate improvement if the stakeholders are involved because it will enhance their fundamental interest in the company by distinguishing positions that interest the market.

References

Aluchna, M. (2013). The Corporate Declaration versus Corporate Practice: The Financial Crisis Perspective. Corporate Social Responsibility in the Global Business World, 115-133. doi: 10.1007/978-3-642-37620-7_6

Romeike, F. (2012). The Ultimate Partnership: Balanced Scorecard and Performance Management. Essentials of Balanced Scorecard, 217-226. doi: 10.1002/9781118386774.ch13