Performance Measurement and Control Systems Implementing Strategy

Question: Discuss about the Performance Measurement and Control Systems for Implementing Strategy. Answer: Introduction: Balanced Scorecard is a mechanism that is helpful for the growth of the internal sources of the business. The main intention of a balanced scorecard that is practiced in a form is undertaking decisions to support the operational level and the top level management regarding the measurement of the performance by concentrating on the historical and short term focus that looks to evaluate the financial performance and the overload of information that reveals the shortcomings of the business (Coe and Letza 2014). The implementation of Balanced Scorecard aids in the reduction of the tensions among the consultant firms and the management. It is seen that this method was exploited for horizontal and not the top-down communication approach. The process of horizontal communication assists the accomplishment of the goal congruence (Bhattacharya et al. 2014). It is seen that Balanced Scorecard is a more efficient process of gaining knowledge and the promotional value establishment, profitability and productivity than the control process management that are traditional in nature. Furthermore, it is not understandable that the Balanced Scorecard is a better method for reducing the gap and the minimizing the mental constraints among the employees of The Business and the management of the firm who has acquired the firm. This process establishes astaticism that has a tendency to fumble with the issues of the transforming business and the increased competition in the market (Simons 2013). With the help of the balanced scorecard process, a strategy that is centrally explained is interpreted in to various measures that lines up all the operations of the business to reach the goals of Balanced Scorecard. The utilization of this method leads to the increased uniformity and is goal oriented. This process therefore raises and probably enhances the concentration on the highlighted objective; however it restricts any further operations and proposals that might go above the actual targets that were set (Hoque 2014). The scorecard reveals the short term and long term indicators of performance of the strategy that have been made. This process concentrates on the cause and effect association among the strategic aims and the measures. Therefore, it acts as an effective tool for strategic management thereby establishing a strategic map to explain the connection among the strategies and the measures. The scorecard is a formal bridge of the performance management and the strategic management. In the third generation Balanced Scorecard, it looks to enhance the strategic control processes by bringing in the relevant statements and usually two standpoint linkage models of strategy (Kaplan and Anderson 2013). The scorecard undertakes the perspective of the end result and operations rather than the traditional methods. This process analyses and evaluates the various sets of roles and aids the utilization of the recognition and the mission of the firm. The main roles of the firm comprise of the intelligence, control and policies (Tjader et al. 2014). The collaboration between the control and the intelligence creates feasible and specific ideas and plans that will be influential for creativity that can explain and expand the present identity and the mission of the firm. By looking at the process of Balanced Scorecard, it is seen that it permits for a surge of the maps of strategy that are implemented with the help of the four management techniques and the five management standards (Gibbons and Kaplan 2015). The map is useful for the communicating up folding of the vision, mission of the firm in the scorecard. The scorecards comprise of the targets, aims operations and the measures. The map of the balance scorecard is useful for the processing and the maintenance of the standards that permits the cont rolling, adaptation and the monitoring of the targets and the objectives of the firm. It is seen that the method of Balanced Scorecard minimizes the pressure and the workload from the managers to discover and implement the perfect structure. It is seen that choice of structure the process undertakes when the management introduces the entertainment scorecard within the units and the functions and thereby, making the functions more aligned with respect to the objectives of the firm (Keyes 2016). The method initiates with the Balanced Scorecard at the top level and lets the strategic goals and objectives distributes it down to the lower levels where they are transformed and customized according to the relevant condition that are faced by the organizational units of the lower level. It is seen that this is the best method with the help of which the decentralized units come in line with each other and the strategy of the organization. Therefore, it can be said that Balanced Scorecard acts as the best method that is useful for the improvement of an organization as it unites the strategic performance tools and thereby promotes the goal congruence of the firm. Reference List Bhattacharya, A., Mohapatra, P., Kumar, V., Dey, P.K., Brady, M., Tiwari, M.K. and Nudurupati, S.S., 2014. Green supply chain performance measurement using fuzzy ANP-based balanced scorecard: a collaborative decision-making approach.Production Planning Control,25(8), pp.698-714. Coe, N. and Letza, S., 2014. Two decades of the balanced scorecard: A review of developments.The Poznan University of Economics Review,14(1), p.63. Gibbons, R. and Kaplan, R.S., 2015. Formal Measures in Informal Management: Can a Balanced Scorecard Change a Culture?. Hoque, Z., 2014. 20 years of studies on the balanced scorecard: trends, accomplishments, gaps and opportunities for future research.The British accounting review,46(1), pp.33-59. Kaplan, R. and Anderson, S.R., 2013.Time-driven activity-based costing: a simpler and more powerful path to higher profits. Harvard business press. Keyes, J., 2016.Implementing the IT balanced scorecard: Aligning IT with corporate strategy. CRC Press. Simons, R., 2013.Performance Measurement and Control Systems for Implementing Strategy Text and Cases: Pearson New International Edition. Pearson Higher Ed. Tjader, Y., May, J.H., Shang, J., Vargas, L.G. and Gao, N., 2014. Firm-level outsourcing decision making: A balanced scorecard-based analytic network process model.International Journal of Production Economics,147, pp.614-623.