Balanced Scorecards at BIOCO Essay
Balanced Scorecards at BIOCO
An Analysis of, “Case Study 7-2: Balanced Scorecards at BIOCO” BIOCO has realized from its use of balanced scorecards that the company has been able to open communication channels, where common goals are established throughout the whole company. Employees are able to view the company’s value drivers, such as financial performance. The Chief Intelligence Officer (CIO) believed that that balanced scorecards helped employees to not only look at their own departments operations, but the overall operations within the company. The Vice President believed that the scorecards helped all employees understand the overall goals of the company within their own departments. Balanced scorecards also helped the IT department interpret the other business areas within the company. The scorecards helped create an internal perspective that outlined the goals and the measures of the company. Balanced Scorecards allowed every employee at BIOCO to know what the company was excelling at, and where the company demanded resources be integrated in order to excel.
The BIOCO way was effective in aiding the IT department to coordinate its goals with that of the company, because every employee through balanced scorecards were able to see the operations and key driver goals of the IT department. Employees could see whether the IT projects were effective and on track. Also, the IT department could see the operations and goals of other business areas within the company. If IT was working on a project to implement information systems (IS) in a certain business area/department, they could review the balanced scorecards to see the kind of goals and operations utilized within that department. IT can then align the IS with the business strategy of a certain department by viewing these scorecards. The BIOCO approach could be successfully integrated into large organizations, and considered a useful communication tool. This tool would be utilized by management to integrate the business strategy with the organizational structure.
Creating goals based on customer perspective, internal business perspective, innovating and learning perspective, and financial perspective would be the first step (Pearlson & Saunders, 2013). The next step will include making adjustments to gauge performance goals accurately. For example, a large firm may gauge how customers perspective by monitoring their reputation within the market, or they will review the impact of projects on its’ users (Pearlson & Saunders, 2013). After a large organization finds a way to measure goals, they will have to create a corporate strategy map. The map will have balanced scorecards that descend throughout the whole company. The map will have to include company, division, region, district, store, and department balanced scorecards.
The only way the BIONCO approach will be useful with a new CEO is if that CEO does not see any change needed within the organization or very little change is needed. If changes should occur goal perspectives will have to be adjusted, and how they are measured will have to be adjusted as well. In order to implement new values, they must change the whole BIONCO way approach to mirror those values. If the values differ immensely from the past CEO, a new approach may be needed all together. The new CEO may want to change the whole business strategy all together to emphasize the IS system. In this case the new CEO may utilize an IT dashboard instead. The BIONCO way will have to be altered to some length in order to be successful, because the CEO will most likely want to change some perspectives of the business.
Pearlson, Keri and Saunders, Carol. Managing & Using Information Systems. New Jersey: John
Wiley & Sons, 2013. Print.