- May 3, 2014
- Posted by: essay
- Category: Term paper writing
According to R. Kaplan the implementation of the new concept should consist of four stages:
1) Development of a balanced scorecard Ēď transformation of long-term plans and strategies into objectives and activities.¬†After development the system should be integrated into the management process. It is important to point out that in developing the¬†BSC for¬†each goal it is necessary to define¬†measurable criteria¬†of
achievement.¬†These indicators¬†are the basis for¬†regular¬†monitoring of the implementation¬†strategy,¬†serve as criteria¬†for success, give¬†directions for planning throughout¬†the company.
2) Consistency – linking all hierarchical levels (from senior management to units) by alignment of the goals and objectives, organization of strategic communication, providing compensation for proactive solutions;
3) Planning – identifying ways to achieve the planned results on specific targets, resource allocation, strategic planning activities;
4) feedback and learning – testing a theoretical framework of the strategy. (Kaplan & Norton 2002)
It is particularly convenient¬†to use the¬†balanced¬†scorecard¬†as a tool for¬†strategic communication, and specifications¬†in those¬†cases where the¬†strategy is¬†formulated vaguely¬†and carries¬†political overtones.¬†Very often¬†it happens¬†in public administration and nonprofit¬†organizations.
Next it is necessary to consider the use of¬†BSC-profit¬†public organization on the example of¬†higher education¬†institution in¬†Saudi Arabia.