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Learning and Growth Perspective of the Balanced Scorecard: bus 499 mod 4 ca (bus499mod4ca) (Research Paper Sample)

Instructions:
See attachments for instructions Your analysis should be structured along the lines you've been using this far in these cases: Introduction: Why did Susan Johnson, Futura's President, emphasize the learning and growth perspective over the other balanced scorecard perspectives? Analysis: What specifically does Futura measure, and what types of measurements do they use to evaluate the company's learning and growth? Conclusion: Do you think these measures capture the full dimensions of the learning and growth perspective as explained in the background materials from this module as well as previous ones? Support your answer with examples and citations. Evaluation: What is your evaluation of Futura's approach? Does it make good business sense or do you think it could cause problems for the company? Agree or disagree with the issue, then defend your position. Use the readings done so far to decide whether the implementation was done well or poorly. Also provided past two case assignments papers for your information. Module 4 - Case The Learning and Growth Perspective The learning/growth perspective of the balanced scorecard presents some particularly interesting challenges. Here is a useful brief summary of the approach: Niven, P. (N.D.) Learning and Growth perspective. EPM Review. Retrieved May 17, 2010, from http://www.epmreview.com/Resources/Articles/Learning-and-Growth-Perspective.html Part of the problem is that this perspective seems the most remote from the final payoffs in the financial area – “touchy-feely” rather than good old hard-nosed management. Kaplan and Norton, the originators of the balanced scorecard, have addressed this issue of how to measure the contribution of such intangible assets as human capital, information capital and organizational readiness, pointing out how human capital is most useful when it is concentrated in key jobs involving internal processes that are critical to the achievement of the organization's strategy. The article is fairly long and you don't need to read it in detail, but it has some ideas that may help you understand this case better: Kaplan, R.S. & Norton, D.P. (2004). Measuring the strategic readiness of intangible assets. Retrieved May 17, 2010, from http://www.cma-slp.com/onlinelibrary/OL_English/Strategy%20Implementation/Management%20Accounting/MeasuringTheStrategicReadinessofIntangibleAssets.pdf Our example in this case is Futura Industries in Clearfield UT. They have implemented the balanced scorecard in an interesting way, apparently giving priority to the learning/growth perspective and expecting it to drive the others. Here's how this process has been described: “Most companies use the balanced scorecard (BSC) to focus on the financial aspects or the operational metrics required by ISO quality certification. But that is not all one unique company uses the BSC for. At Futura Industries, President Susan Johnson built the enterprise's success over the past 3 years on the BSC's foundational level - the learning, innovation, and growth dimension. This dimension provides the building blocks that generate success in the remaining 3 quadrants: customer service, financial, and internal operations. And the results have followed: a 50% increase in revenue without adding personnel from 1996 to 1999. This organization is all about putting people first. So much so that the company of 300 ranks in the top 10 Family Friendly Employers in Utah for the third year in a row. A look at how they have implemented the 4 quadrants of the BSC using the learning innovation, and growth dimension as their foundation is presented.” The article from which this summary is taken can be found here: Gumbus, A. & Johnson, S.D. (2003, July). The balanced scorecard at Futura Industries. Strategic Finance. 85(1). 36-42. Retrieved May 17, 2010, from http://proquest.umi.com/pqdweb?sid=1&vinst=PROD&fmt=6&startpage=-1&clientid=29440&vname=PQD&RQT=309&did=370139621&scaling=FULL&vtype=PQD&rqt=309&TS=1226799369&clientId=29440 As your case assignment for this module, you are to carefully review this article, and then (in 3-4 pages) prepare your analysis of how Futura Industries implemented the balanced scorecard and its apparent effects. Assignment Expectations: Your analysis should be structured along the lines you've been using this far in these cases: Introduction: Why did Susan Johnson, Futura's President, emphasize the learning and growth perspective over the other balanced scorecard perspectives? Analysis: What specifically does Futura measure, and what types of measurements do they use to evaluate the company's learning and growth? Conclusion: Do you think these measures capture the full dimensions of the learning and growth perspective as explained in the background materials from this module as well as previous ones? Support your answer with examples and citations. Evaluation: What is your evaluation of Futura's approach? Does it make good business sense or do you think it could cause problems for the company? Agree or disagree with the issue, then defend your position. Use the readings done so far to decide whether the implementation was done well or poorly. source..
Content:
Learning and Growth Perspective of the Balanced Scorecard
A balanced scorecard (BSC) is a type of management practice that replaces the drivers of past performance like the financial measures with the future performance drivers like the customer satisfaction, development of human and intellectual capital and learning together with growth. The process involves four different quadrants which are the financial, customer satisfaction, internal business process and the learning and growth aspect (Kaplan & Norton 2005)
At the Futura Industries, Johnson successfully built the enterprise on the foundational level which is the learning, innovation and growth dimension. The dimension provides the building blocks that generate success in the other three quadrants. The industry managed a 50% increase in revenue without adding personnel between 1996 and 1999. Johnson believes that the learning and growth quadrant is the most important dimension in the BSC because people who are respected, trusted and challenged to grow are the foundation in the company. Every individual has the responsibility to deliver services to the benefit of the company and also to the benefit of the customer. They chose the dimension so as to help the company align its strategy to tactics and measures. This dimension provides the company leadership with one page tool to capture data for the business thus acts as a visual representation (Rohm 2004) The dimension was based on hiring and retaining of best staff and also devotion to customer satisfaction. The measures used in this dimension’s approach by Johnson circulated around the surveys being carried out periodically within and without. The surveys are as listed: Employee friendly initiatives at the company, Birthday reviews, Leadership surveys, Certification and...
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