A BALANCED SCORECARD ANALYSIS OF PERFORMANCE METRICS IN PROFIT ORGANIZATION

Abstract

Management processes directed primarily to the user and thus improve the
efficiency and effectiveness of operations in exceeding user demands and
expectations. So that organizations realize the benefits on all levels, as compared with
external partners and business environment, as well as internally within the
organization. But in practice, systems for managing corporate change often point to
the shortcomings and lack of commitment at the level of corporate governance in
order to improve the efficiency of the process. Taking into account the problems they
face at the same company, Balanced Scorecard - BSC stands out as especially suitable
tool for the management of corporate change. BSC translates mission and strategy of
the organization in the comprehensive set of measures that provide a framework for
the implementation of the strategy. But many senior managers recognize that no
single measurement can provide enough information about the critical areas of the
business. Therefore, a balanced set of measurements is needed. Organizations today
use decentralized business units that focus on intangible knowledge, capabilities, and
relationships created by employees. Some organizations understand that strategy must
become a continual and participative process. The change from centralized command,
and financial measures that come from past actions can no longer measure the
objectives that need to be addressed. We must measure the strategy and the best tool
to do this is balanced scorecard. BSC makes it possible to establish a model in the
profit organization, so that the strategic aspects of the observed set relevant objectives
and include features that will be measured. BSC aims to improve business processes
for a streamlined process can improve product quality to customer satisfaction. So
satisfied and loyal customer is a guarantee of higher profits. The balanced scorecard
combines an effective measurement system that helps solidify a company’s strategic
objectives with a management system that can help drive change in key areas such as
product, process, customer, and market development. The measures of the balanced
scorecard helps focus a company’s strategic vision, encourages thinking about current
and future success and helps provide a balance between external and internal
measures. This paper presents BSC modeling of key success factors represented in
strategy map of profit organization and how it affects the organization's measurement
system.