HR Management Assignment Paper on Strategy Composition

Strategy Composition

Introduction

            Amid an era whereby most organizations are seeking to cut an edge over their competitors, a balanced scorecard has proved to be an essential tool for measuring performance. Various organizations today regard a balanced scorecard as the cornerstone of a management system. The scorecard continues to serve as an instrumental tool in translating an organization’s mission and strategy into a comprehensive set of performance measures that provide the framework for strategic measurement and management system. In addition, the scorecard has been designed to measure the performance of an organization across four balanced perspectives namely financial, customer, internal business process and growth.

Financial Perspective

            Financial perspective is a crucial component for any operating organization. Financial matters are viewed in form of capital, revenue, profits and loss (In Vemić, 2017). Our organization is not exempted from financial matters which need to be measured regularly in order to determine the overall performance of the organization (Niven, 2006). As for the for-profit domain, the main function of the financial perspective is to inform the organization on whether the chosen strategy execution would lead to improved bottom-line results (Anand, 2016).  The non-profit organizations and public sectors utilize the financial perspective as a strategy to measure and gauge whether the institution is achieving its goals in a cost-effective manner.

Customer Perspective

            Customers are the drivers of any existing business. Without customers, an organization’s attempt to make profits would be deemed futile. Consequently, the balanced scorecard is characterized with customer perspective whose role is to gauge on whether the business is still able to maintain its market share. Furthermore, the customer perspective serves as an eye-opener for an organization to be more particular on its customer targets, the customers’ needs and its competitors (Niven, 2006).

Internal Business Process Perspective

            The internal business process is an important perspective that enables an organization to identify the key processes at which it must excel in so as to continue adding value to the customers (Anand, 2016).The business process perspective focuses on specific internal operational procedures that assist the organization to attain its value proposition as well as satisfy the customers’ needs. In order to satisfy the customers, the internal business process perspective should aim to achieve the following; proper delivery services, service development and creation of a partnership relationship between itself and the community (Niven, 2006).

Growth Perspective

            For an organization to attain its set goals and objectives, it needs to focus on its employees’ growth and development. In order to improve the employees’ level of productivity an organization ought to focus on the growth perspective component of the balanced scorecard. This is because growth perspective aims to identify and close the skill and knowledge gaps of the employees (Niven, 2006).

            Aside from having a balanced scorecard, a company may opt for other strategies that would suit the company’s profile. However, in order for a company to prudently formulate effective strategies, it needs to perform a SWOT analysis (In Vemić, 2017). The SWOT analysis results provide useful information with regards to both the internal capabilities and external situations that are facing the company. Overtime, most organizations are bound to grow and expand with an unprecedented increase in market share. These organizations thereby need to acquire an organizational strategy so as to determine the wants and needs of the organization overtime.

             When pursuing global expansion, it is important for an organization to have more than one strategy. This will enable the organization to minimize the effect of losses brought about by risk and uncertainties of global expansion (In Vemić, 2017). Also an organization that has more strategies would be able to effectively compete with its competitors.  In conclusion, it is important for a company two or more strategies in its preparedness for growth and continuous expansion.

References

Anand, S. (2016). Execution excellence: Making strategy work using the balanced scorecard. https://books.google.co.ke/books?id=nlyzCgAAQBAJ&printsec=frontcover&dq=Anand,+S.+(2016).+Execution+excellence:+Making+strategy+work+using+the+balanced+scorecard.&hl=en&sa=X&redir_esc=y#v=onepage&q&f=false

In Vemić, M. B. (2017). Optimal management strategies in small and medium enterprises. https://books.google.co.ke/books?id=xufuDQAAQBAJ&printsec=frontcover&dq=In+Vemic%CC%81,+M.+B.+(2017).+Optimal+management+strategies+in+small+and+medium+enterprises&hl=en&sa=X&redir_esc=y#v=onepage&q&f=false

Niven, P. R. (2006). Balanced scorecard step-by-step: Maximizing performance and maintaining results. Hoboken, N.J: Wiley. https://books.google.co.ke/books?id=yUEiYmU3LgcC&pg=PR4&dq=Balanced+scorecard+step-by-step:+Maximizing+performance+and+maintaining+results.+Hoboken,+N.J:+Wiley.&hl=en&sa=X&ved=0ahUKEwi07p2vh-HVAhViIJoKHT76DAYQ6AEIJDAA#v=onepage&q=Balanced%20scorecard%20step-by-step%3A%20Maximizing%20performance%20and%20maintaining%20results.%20Hoboken%2C%20N.J%3A%20Wiley.&f=false