In Kaplan & Norton Generic Strategy map, one perspective is the learning and growth perspective. Explain the significance of this perspective. Write the requirement of the perspective in detail and what outcome can be achieved if it is followed.
Significance * Learning and growth strategies are important for the long term development of the firm * Learning and growth perspective defines the intangible assets which are needed to enable the activities and customer relationships to be performed at high level * It includes measurement for people (employee retention, training, skills, morale) * It also measure critical real time information needed for front line employees * The chain of cause and effect relationships tend to cause improvements in business processes , which in turn cause improvements in sales and financial measurement of profitability. The direction of cause and effects relationship can be emphasized as: Learning and growth º Internal business process º Customer º Financial * It continuously develop and deliver new innovative products and services * Organization innovation and learning perspective is used to maintain infrastructure needed for long term growth and improvements. Learning and Growth perspective:
In learning and growth perspective organizations purpose is “to achieve its mission and how it will sustain its ability to change and improve” it defines the intangible assets that are needed to enable activities and customer relationship to be performed at high levels of performance so that the firm can serve its customer well. This perspective is also the base of forming strategy if base is well structured and aligned with the organizational objective strategy can prove itself more effective. It is important important for the long term development of the firm.
Requirements of learning and growth perspective are listed below: * Strategic competencies * Strategic technologies * Climate for action
Strategic competencies: Strategic competencies are the strategic skills and knowledge required by the work force to support the strategy. Strategy itself is of no use until unless supported and implemented by the workforce of the organization. Employees should be involved in decision making so that they considered themselves a part of the firm and take rational decisions about .If some employee is doing well for the organization firm should reward him and give him recognition for the job that he has performed well this thing gives us the concept of motivation it is the driving force that drives a person to achieve its objective.
Strategic Technologies: These are the materials and process technologies, information system, databases, tools, and network required to support the strategy. Once strategy is made now it requires some technical software tools for its processing it can be some software that enable the work force to reduce times in the operations of the business. An organization can gain competitive edge over its competitors by using technologies.
Climate for actions: Climate for action provides the cultural shifts needed to motivate, empower, and align the workforce behind the strategy . it’s the course of action that how organization is going to align its strategic competencies, strategic technologies with each other . organization matches its abilities with its strategies and oversees if it can perform as they have made the strategy. It’s a point where organization checks its strategic fit between the organizational plan and resources employed for it . It accesses the climate prior to the action .
As it focuses on intangible assets of the firm mainly on the internal skills and capabilities of the employees that are required to support the value creating internal processes. It also describes how technology people are combined to support the strategy and if it is implemented it can lead in the improvement in the internal processes, customers, and financial perspective