Importance of learning and growth
The balanced scorecard is a strategic planning and management system that is used by businesses, governments, and others organizations to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. It can be discussed under the following;
Mission – A manager is expected to know how well their product is running, and whether the organization’s products and services meet the customers demand. The mission of any organization has to be designed by those who understand the process well and have ideas since a mission should be a unique one which cannot be easily copied by the outsiders.
For any organization to achieve its missions, it must align the organizational functions with its objectives by centering on the staff and their roles in attaining the company’s objectives (Gumbus & Johnson 2003).
Balanced scoreboard strengthens a company’s ability to follow up and boost learning-and-growth enablers, unveils things in learning-and-growth that the management might not have noticed or even thought of. Additionally, it reinforces a firm’s ability to connect learning and growth enablers to the integral business processes and customer experiences, thus refining approach. Finally, it enables those in management to answer some fundamental questions that they lucked answers for (Kaplan & Norton 2001).
Strategy – this is necessary for any business to achieve its objectives because it gives directions and connect between objectives and also involves allocation of finance and this helps in reducing the risk of liability suit in that they work towards reduction of financial loss from the liability, loss of customer intimacy and loyalty, deficiency of internal checks and balances and promotion policy.
When putting a strategy, growth is the main achievement we want therefore we must put into consideration our current clients and now aim at getting more customers and this depends on the quality of goods we produce our speed (Demick & Miller 1993).
Objectives – Improving the objectives found in “learning and growth perspective enables the organization to improve its internal process perspective objective which in turn enables the organization to create desirable results in the customer and financial perspectives” (Kaplan & Norton 2004).
Here, the ability to sustain changes and improvement are dealt with and the final outcome of the product is considered before being dispatched to the customers. Customer complaints are dealt with to ensure that they are satisfied and goods delivery is on time (Niven 2010).
Measures – To achieve a business’ mission consistently, it is necessary for any business to measure its achievements and sustainability. Sustainability and profitability can only be achieved if customer satisfaction is increased because this promotes sales hence increased income resulting to generations of return customers which can be measured through tracking data from the distribution channels.
In many organizations we find that with achievements of the mission. “Corporate citiaenship, interdepartmental collegiality, and cultural maturity are monitored-with a goal of employees moving to the next level during their performance review” (Demick, 1993).
Learning enhances growth because as new technology is implemented, employees need new skills, therefore the two works together. The management needs to give incentives to the employees and also offer training.
References
Demick, J. & Miller, P. M. (1993). Development in the workplace. Hillsdale, N.J.: Erlbaum.
Gumbus, A. & Johnson, S. D. (2003). The balanced scorecard at Futura Industries. Strategic Finance. 85(1). 36-42.
Kaplan, R. & Norton, D. (2001). The strategy-focused organization. New York: Harvard Business School Press.
Kaplan, R. S. & Norton, D. P. (2004). Measuring the strategic readiness of intangible assets. PDF file. Web.
Niven, P. (2010). Learning and Growth perspective. EPM Review. Web.