Balanced Scorecard JEFRI

7/30/2019 Balanced Scorecard JEFRI

1/20

ACC720

JEFRI BIN MUSTAPHA

PREPARED FOR:

ASSOC PROF DR NIK KAMARUZAMAN BIN

HJ ABDULATIF

ACC720

THE IMPLEMENTATION OF

BALANCED SCORECARD


2/20

2

THE IMPLEMENTATION

OF

BALANCED SCORECARD

IN

THE ENGLISH PANEL

SEKOLAH MENENGAH AGAMA

TAN SRI GHAZALI JAWI


3/20

3

TABLE OF CONTENT

1.0 INTRODUCTION 4

1.1 ENGLISH PANEL 5

1.2 ORGANIZATIONAL CHART 5

1.3 THE PROBLEM 6

2.0 BALANCED SCORECARD (BSC) 7

2.1 DEFINITION 7

2.2 BSC SUPPORTS MANAGEMENT PROCESSES 7

2.3 KEY BENEFITS OF USING BSC 9

2.4 BALANCED SCORECARD PERSPECTIVES 11

2.5 GOVERNMENT AND NON PROFIT ORGANIZATIONS BSC 12

3.0 IMPLEMENTING BSC 14

4.0 CONCLUSIONS 18

5.0 REFERENCES 20


4/20

4

1.0 INTRODUCTION

Sekolah Menengah Agama Tan Sri Gahazali Jawi (SMATSGJ) is a

Government Assisted Religious School (SABK)1 situated at the heart of Gerik,

Perak. It is the only SABK in Hulu Perak district. The school was registered asPeople Religious School* (SAR)2 under the supervision of Jabatan Agama Islam

Perak (JAIPk) and then registered as SABK in 2006.

Currently SMATSGJ has 289 students from form one until form six. Number of staff

servicing this school is 40. Students have to undergo two types of curriculum namely

mainstream and azhariah. In azhariah, form one and two students have to sit Idadi

examination whereas form four students will sit for thanawiexamination. At the same

time mainstream curriculum have Lower Secondary Examination (PMR)3 and

Malaysia Certificate Examination (MCE)4.

1Sekolah Agama Bantuan Kerajaan

2

Sekolah Agama Rakyat3Penilaian Menengah Rendah

4Sijil Pelajaran Malaysia


5/20

5

1.1 ENGLISH PANEL

The Schools English Panel consists of teachers who are taching English

Language subject in the school. Since the scholl is small, there are only three

members of the panel. The three of us are responsible for teaching English to pupilsfrom form 1 to form 5.

1.2 THE ORGANIZATIONAL CHART

The English Panel for the school is responsible for many activities from

academic to non academic activities. Academic activities include preparing

examination and test questions, observations and preparing examinations post

mortem. On the other hand, major non academic activity is participating in

competitions organized by the district education office.

THE PRINCIPALTn. Hj. Arifine bin Daud

HEAD OF ENGLISH PANEL

Pn Nasriyah binti Rashid

THE SECRETARY

En. Jefri bin Mustapha

THE TREASURER

Pn. Asmahanum binti Azman


6/20

6

1.3 THE PROBLEM

Every year there will be debate, public speaking and choral speaking

competition in relation to language month. The English Panel will have to select

participants and train them so that they can compete with other schools. In line with

its mission: Excellence in every area, the English Panel has work their hearts out

year in year out to make sure that the team that represent the school will be well

equipped to ensure their competitiveness in each competition.

Despite working their tail off, the school is yet to win any competition since the

school opened in 2005. There always is scarcity in something. We feel that we have

done enough but the result is quite frustrating. After some thinking and reflection, we

realized that the most important thing we lack off is knowledge and skills. Our

teachers do not have enough technical knowledge and motivational skills. So, I

decided to put Balanced Scorecard (BSC) to test. The BSC will be used to measure

and control our effort in training our pupils in building the ultimate debate team and

choral speaking team. So the target, in this case is the schools debate and choral

speaking team win at least third place in the 2013 competition.

The English panel has divided the tasks to Pn. Asmahanum as the person in

charge of Parliamentary Debate while I am in charge of the Choral Speaking

competition. The tasks include selecting; searching for materials, attend meetings

and trainings. The panel has agreed to held the training twice a week starting from

the third week of January 2013. We have just below 4 months of training before the

competition in April 2013.

I will use BSC focusing on the activities of preparing the debate and choral

speaking team. BSC will be the control tool in the implementation of the plan. Using

BSC, I am sure I can keep track of all the activities and make sure that they are

implemented according to plan. It is also as a tool to communicate the importance

and the significance of the project to the panel member about the project. Even

though BSC has been around for a while, it is very new to me as well as to the panel.


7/20

7

2.0 THE BALANCED SCORECARD (BSC)

2.1 DEFINITION

The Balanced Scorecard is a strategic performance management framework

that has been designed to help an organization monitor its performance and manage

the execution of its strategy. In a recent world-wide study on management tool

usage, the Balanced Scorecard was found to be the sixth most widely used

management tool across the globe which also had one of the highest overall

satisfaction ratings. In its simplest form the Balanced Scorecard breaks performance

monitoring into four interconnected perspectives: Financial, Customer, Internal

Processes and Learning & Growth. The concept was initially introduced by Robert

Kaplan and David Norton in a Harvard Business Review Article in 1992 and has

since then been voted one of the most influential business ideas of the past 75 years.

2.2 BSC SUPPORTS MANAGEMENT PROCESSES

In 1996 Kaplan and Norton argued that the balanced scorecard could be used as a

strategic management system which supports four management processes (Kaplan

and Norton, 1996):

Translating the Vision

Lofty statements such as "becoming the number one supplier" or "best in class" are

difficult to translate into operational measures that have meaning to the people at the

local level. Creating a balanced scorecard however forces management to further

clarify their vision until they are able to translate the vision into a set of objectives and

operational measures on the balanced scorecard, which have meaning to the people

who have to realize the vision. These objectives and measures for the four

perspectives, agreed upon by all executives, describe the long term drivers of

succes.

Communicating and Linking

Implementing a strategy begins with communicating the strategy up and down the

organization and educating those who have to execute it. The strategy must also be


8/20

8

translated into goals and performance measures on the balanced scorecard for

operating units and individuals. Rewards might be linked to these performance

measures.

Business Planning

Managers set targets for the long term objectives for all four scorecard perspectives.

In order to achieve these long term objectives, managers identify the strategic

initiatives required and allocate the necessary resources to those initiatives. Finally,

managers establish short term goals (milestones) for the measures that mark

progress towards achieving the long term objectives.

Feedback and Learning

Managers formulate a strategy based on certain hypotheses about cause-and-effect

relationships. Examples of hypotheses: - a higher customer satisfaction (a measure

in the customer perspective) is correlated with faster payments of invoices (a

measure in the financial perspective) and faster payments result in a higher return on

capital (another measure in the financial perspective) or: - improved information

systems (a measure in the internal business processes perpective) result in higher

sales (measure in the financial perspective). When a company implements the

strategy it might found out that certain cause-and-effect relationships are not found

over time. In that case a company should reconsider the theory underlying the unit's

strategy and might even conclude that it needs a different strategy. This process of

gathering feedback, testing the hypotheses on which strategy was based and making

the necessary adjustments is called "strategic learning". According to Kaplan and

Norton, companies should use the balanced scorecard as the center for management

processes, instead of budgets (adapted from Kaplan and Norton, 2001 pp. 22-26):


9/20

9

2.3 KEY BENEFITS OF USING BSC

Research has shown that organizations that use a Balanced Scorecard approach

tend to outperform organizations without a formal approach to strategic performance

management. The key benefits of using a BSC include:

Better Strategic Planning

The Balanced Scorecard provides a powerful framework for building and

communicating strategy. The business model is visualized in a Strategy Map which

forces managers to think about cause-and-effect relationships. The process of

creating a Strategy Map ensures that consensus is reached over a set of interrelated

strategic objectives. It means that performance outcomes as well as key enablers or

drivers of future performance (such as the intangibles) are identified to create a

complete picture of the strategy.


10/20

10

Improved Strategy Communication & Execution

The fact that the strategy with all its interrelated objectives is mapped on one piece of

paper allows companies to easily communicate strategy internally and externally. We

have known for a long time that a picture is worth a thousand words. This plan on a

page facilitates the understanding of the strategy and helps to engage staff and

external stakeholders in the delivery and review of strategy. In the end it is impossible

to execute a strategy that is not understood by everybody.

Better Management Information

The Balanced Scorecard approach forces organizations to design key performance

indicators for their various strategic objectives. This ensures that companies are

measuring what actually matters. Research shows that companies with a BSC

approach tend to report higher quality management information and gain increasing

benefits from the way this information is used to guide management and decision

making.

Improved Performance Reporting

Companies using a Balanced Scorecard approach tend to produce better

performance reports than organizations without such a structured approach to

performance management. Increasing needs and requirements for transparency can

be met if companies create meaningful management reports and dashboards to

communicate performance both internally and externally.

Better Strategic Alignment

Organizations with a Balanced Scorecard are able to better align their organization

with the strategic objectives. In order to execute a plan well, organizations need to

ensure that all business and support units are working towards the same goals.

Cascading the Balanced Scorecard into those units will help to achieve that and link

strategy to operations.


11/20

11

Better Organizational Alignment

Well implemented Balanced Scorecards also help to align organizational processes

such as budgeting, risk management and analytics with the strategic priorities. This

will help to create a truly strategy focused organization.

(adapted from Kaplan and Norton, 2001):

2.4 BALANCED SCORECARD PERSPECTIVES

In its simplest form the Balanced Scorecard breaks performance monitoring

into four interconnected perspectives: Financial, Customer, Internal Processes and

Learning & Growth.

Here are the definitions for the four Balanced Scorecard perspectives:

The Financial Perspective covers the financial objectives of an organization

and allows managers to track financial success and shareholder value. In

government sector, the success does not measured in RM and cents because

we are not profit driven. It is important to have financial support but money is

not the ultimate goal.

The Customer Perspective covers the customer objectives such as customer

satisfaction, market share goals as well as product and service attributes. As

far as my organization is concerned, our customers are our pupils and

students, the district education office, state education department and the

ministry of education.

The Internal Process Perspective covers internal operational goals and

outlines the key processes necessary to deliver the customer objectives.

The Learning and Growth Perspective covers the intangible drivers of future

success such as human capital, organisational capital and information capital

including skills, training, organisational culture, leadership, systems and

databases.


12/20

12

2.5 GOVERNMENT AND NON PROFIT ORGANIZATIONS BSC

While the Balanced Scorecard was initially designed for commercial companies,

the framework has found wide-spread use in the public and not-for-profit sector.

However, it is important to make a few changes to the strategy map template in order

to make it suitable to government, public sector and non- profit organizations. The

biggest difference is private sector does not put making profit as the priority of the

organizations. Their main concern is the satisfaction of their stakeholders. Financial

perspectives are not as important as in profit centered organizations.

Two graphic illustrations appear below to help convey the idea.


13/20

13

The graphics above are more applicable to organizations that are profit centered. The

graphic below runs the financial perspective alongside the other perspectives. This is

probably the most popular and sensible option because it highlights the importanceof finance across all objectives.


14/20

14

3.0 IMPLEMENTING BSC

Based on the above graphic, I summarize my projects importance.

The vision To be excellent in every area. So it is our duty to excel

in parliamentary debate and choral speaking.

The Financial Perspectives If the pupils succeeded, the schools will be recognized

and respected in the district.

Customer Perspective If we were able to achieve the target, our pupils will be

happy and satisfied because they are recognized and

able to show off their talents. Furthermore, their extra-

curricular activities marks will be higher. This will help

them when they want to further their study.

Internal perspective In order to satisfy our pupils, we need to be excellent

in time management and quality control. Teachers

need to be punctual at any time because it reflects the

seriousness of the project. Teachers also must provide

the best materials for the pupils.


15/20

15

Learning and growth Teachers involved must learn the technical part of

parliamentary debate and choral speaking so that they

now what carries more marks as well as the dos and

the donts. Teachers must also acquire motivational

skills so that they will ba able to attract pupils attention

and effort throughout the process.

Now I identify tasks need to be carried out to achieve the target. Each task will

be planned and organized accordingly from January 2013 until the expected date of

competition, which is in April. In the graphic below, I show the work flow of the

project. Both choral speaking and parliamentary debate are using the same flow.

Teachers in charge will take the responsibility of carrying out the tasks.

January February March April

Selection

Materials

Trainings

Meetings

Selection- This is where teachers identify potential candidates to represent the

schools

Materials- Teachers look for materials and scripts for pupils to memorize.

Trainings- It will be held twice a week after school hours

Meetings-There are two types of meeting. One at the school level. Another one at the

district level. The outcomes of the meetings are the venue, the date and the rules

and regulations of the competition.

The next step is to come up with a strategy of achieving our target of

improving the choral speaking and parliamentary debate team. My strategy is to dig

up as many choral speaking and parliamentary debate information using sources

such as internet and ask from friends from other schools. This information I get will

help me on formulating an effective training procedure to help my pupils improve their


16/20

16

presentation skills. I will organize training from bottom up where pupils will be trained

starting from pronunciation to intonation. The strategy that I formulated will be

arranged into the BSC. Graphic below will help in visualizing it.

Vision Mission Strategy

Learning

and growth

perspective

Excellent in

district

competition

To be excellent

in every area

To dig up information on choral

speaking and choral speaking

from the internet

Internal

perspective

Formulate a training program that

will improve

Customer

perspective

Pupils skills in oral presentation for

the competition

Financial

perspective

They will make the school proud

From that I will come up with ways to measure the strategy and its frequency of

measurement, as well as the person in charge of measuring the strategy.

Strategy Measure Follow up Target Result Person

in charge

Learning and

growth

perspective

To dig up

information on

choral speaking and

choral speaking

from the internet

Number

of

materials

and

scripts

Twice

weekly for

2 weeks

3

materials

or scripts

Panel

head

Internal

perspective

Formulate a training

program that will

improve

Test runs,

rehearsal

weekly Twice

weekly

Teachers

in charge

Customer

perspective

Pupils skills in oral

presentation for the

competition

Trainings,

friendly,

mock

monthly At least

score

70%

Teachers

in charge

Financial

perspective

They will make the

school proud


17/20

17

This card will help person in charge to keep track of the progress we make along the

way. As we go along, we will be able to indicate if any corrections needed to the

process. This will make sure that we are on track upon achieving our target.


18/20

18

4.0 CONCLUSIONS

Instead of looking it as another workload or burden to be carried out in the

daily work, BSC is a useful tool in managing day- to- day operation. It is amazing how

a companys strategy, vision and mission can be translated onto a piece of paper. No

wonder it has become one of the most used tools in management.

It is new to my organization. It has been around for decades. The first time I

heard about it, golf came through my mind. I imagined walking around my school with

a card and a pencil in my hands. Writing down points as I walked through. The more

dug into it, the less similar it becomes. It has grown into me since.

Like I said, it is a very useful tool to monitor and measure progress. It answers

the question, Are we on the right track? It is very important to be aware of the latest

updates of work in progress so that the desirable results can be accomplished. We

do not want things go out of control. The worse thing is, it is too late when we

realized it.

However BSC requires full commitment from the top management to ensure

successfulness. Everybody involved must be open enough to take criticisms.

Everyone must have no- hard- feeling attitude because it is business, not personal. Itis for the organizations own good. It is about realization of the organizations vision

and mission.

The beauty of BSC is it put the organizations mission and vision at the heart

of the strategy. This will result in alignment of all the strategies and measures to

achieving the organization vision and mission. This sense of synergy can create a

balance among the sub units of the organization.

Even though BSC requires some time, energy, effort and funding, it is worth it.


19/20

19

REFERENCES

1. Fonvielle, W. and L. P. Carr. 2001. Gaining strategic alignment: Making

scorecards work. Management Accounting Quarterly

2. Forsythe, R., J. A. Bunch and E. J. Burton. 1999. Implementing ABC and the

balanced scorecard at a publishing company. Management Accounting

Quarterly

3. Kaplan, R. and D. Norton. 1992.The balanced scorecard - Measures that drive

performance. Harvard Business Review

4. Kaplan, R. S. and D. P. Norton. 1993. Putting the balanced scorecard to

work. Harvard Business Review

5. Kaplan, R. and D. Norton. 1996. Using the balanced scorecard as a strategic

management system. Harvard Business Review

6. Kaplan, R. S. and D. P. Norton. 1996. The Balanced Scorecard: Translating

Strategy into Action. Boston: Harvard Business School Press.

7. Kaplan, R. and D. Norton. 1997. Why does business need a balanced

scorecard? Journal of Cost Management

8. Kaplan, R. and A. Atkinson. 1998. The balanced scorecard: Measuring total

business unit performance.Advanced Management Accounting3rd

edition,Chapter 8. Prentice Hall.

9. Kaplan, R. S. and D. P. Norton. 2001. The Strategy-Focused Organization:

How Balanced Scorecard Companies Thrive in the New Business

Environment. Boston, MA: Harvard Business School Press.

10. Kaplan, R. S. and D. P. Norton. 2001. Transforming the balanced scorecard

from performance measurement to strategic management: Part I.

11. Kaplan, R. S. and D. P. Norton. 2001. Transforming the balanced scorecardfrom performance measurement to strategic management: Part II.

12. Kim, W. C. and R. Mauborgne. 1997. Value innovation: The strategic logic of

high growth. Harvard Business Review

13. Kim, W. C. and R. Mauborgne. 1999. Creating new market space: A

systematic approach to value innovation can help companies break free from

the competitive pack. Harvard Business Review

14. Kim, W. C. and R. Mauborgne. 2002. Charting your company's future. Harvard

Business Review


20/20

20

15. Lyons, B., A. Gumbus and D. E. Bellhouse. 2003. Aligning capital investment

decisions with the balanced scorecard. Journal of Cost Management

16. Martinsons, M., R. Davison and D. Tse. 1999. The balanced scorecard: A

foundation for the strategic management of information systems.

17. Norreklit, H. 2003. The balanced scorecard: What is the score? A rhetorical

analysis of the balanced scorecard.Accounting, Organizations and Society

18. Reilly, G. P. and R. R. Reilly. 2000. Using a measure network to understand

and deliver value. Journal of Cost Management

19. Rucci, A. J., S. P. Kirn and R. T. Quinn. 1998. The employee-customer-profit

chain at Sears. Harvard Business Review

20. Schonberger, R. J. 2008. Lean performance management (Metrics don't add

up). Cost Management(January/February): 5-10. (Note: Schonberger

criticizes the KPI or scorecard approach from the lean enterprise perspective.

21. Tatikonda, L. U. and R. J. Tatikonda. 1998. We need dynamic performance

measures. Management Accounting

Documents

Balanced Scorecard JEFRI