The balanced scorecard is a system that helps business people to become savvy in strategic management. Companies have a life line through this system to make self evaluation and plan for a successful business path. This system was meant to help companies and businesses achieve the best possible results for the business endeavors. BSC has caused ripples among various practitioners across the vast business fraternity at first nobody seemed to have a clue as to how to describe the perspective it sought to create about business operations. The result of these perceptions caused misunderstanding among both proponents and opponents of the system. The system however does not seem to follow the same path as other systems developed before its emergence; it lacks the technical aspect. (Neiger et al, 2009)
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In any type of business management is a serious concern that needs to be looked in to keenly without prejudice. Management in any company or business plays a major role that cannot be wished away at whatever cost. Where there is good leadership then a business stands to reap fruits; providing a course to prosperity and decent profits. Bad management results in the crippling of business activities as well as the eventual death of a business initiative.
What does strategy and operational control entail?
In leadership or corporate governance how one runs a business matters a lot; in some aspects it draws parallels between success or profitability and in the worst scenarios may result in losses. Management is seriously intertwined with actions and action measures. A leader has to always monitor stringently the daily performance of the business. Business operations gather moment when a number of aspects are put to play; one is diagnostic measures that are used for controlling processes. The culture that a business relates to or wants to be associated with also may give a pointer as to what direction the company intends to move. Business leaders are also tasked with developing interaction systems in their own jurisdiction that work and translate in to good relations among staff. Policy framework should be established and adhered to knowing very well that boundaries have to be set; any crossing of the lines ramifications are there. Control mechanisms can be tailor made to suit various scenarios; personal controls may be merged with cultural work practices. (Neiger et al, 2009)
What were the efforts undertaken to effect BSC in to BAE?
There was an evolution in BAE when the company sought to make a number of changes in the way they did their operations. The company decided to make a shift from their traditional modalities of doing things and sought to make changes in regard to their culture. BAE evolved over a period of time; they moved from a system that was not as coherent as the balanced score card to one that was, the balanced score card. They had a system that embraced the Business Value Scorecard; this is the method that came before balanced score card at the BAE. The BVS approach carried along it the vision that top management at the BAE had set it out to achieve and it came as a welcome relief when their profits margins begun to soar.
BVS came in to being because the leadership at BAE wanted a system they deemed sufficient to lead the company in to a smooth changeover and also have the effect of ensuring cultural change takes place. Financial and the non-financial aspects of execution of pillars of the culture were discussed to great lengths by the management. (Eisen, 2000)
BAE made strides in terms of its market share in Europe; in the year 1999 the company had become a market leader in Europe. The company deals with making defense equipment and it was during the same year that they got themselves being positioned second largest company in the world. The company is divided in to eight subsections with each making specific items. In the year 1994, the company found itself in a precarious situation whereby despite of the wish to carry out cultural change; they were unable to perform competitively. Members who formed part of the managerial team embarked on an exercise to analyze the weaknesses and the strong points that the company had to showcase. The realization that the company seemed to be stalling pushed the Chief Executive and his team in to action; they brainstormed on how best to make amends before it was too late. (Eisen, 2000)
The chief executive and his support decided on modalities on how to push through changes and better work and operational ethics to keep the company head above water. The chief executive also decided to push a raft of measures through; among them was reviewing business practices as well engage experts beyond the company walls to help out. He engaged everyone regardless of rank or position within the company as a means to rectify the situation at hand. (Kaplan and Norton, 2008)
Was the approach a success?
The company not only made an upward movement in profitability but they were now having functional systems. Employees were able to feel and share in the new changes; they were getting the befitting treatment they deserved. They were also accorded a raft of benefits and the practices at the Human Resource departments were well streamlined and the employee retention level had begun to improve. The changes at BAE were a welcome success and the company is continuously reaping the benefits of those bold steps towards change. (Kaplan and Norton, 2008)
Neiger, D., Churilov, L., Flitman, A., & Rotaru, K. (2009). Value-focused process engineering: A systems approach : with applications to human resource management. New York: Springer
Eisen, P. J. (2000). Accounting. Hauppauge, N.Y: Barron’s Educational Series.
Kaplan, R. S., & Norton, D. P. (2008). The execution premium: Linking strategy to operations for competitive advantage. Boston, Mass: Harvard Business Press.