This report has included the balanced scorecard and implementation of a balanced scorecard in Suncorp group. It is analyzed that the balanced scorecard is helpful in Suncorp Group as it helps in improving the performance and measuring the performance of the company effectively. The various features of balanced scorecard are helpful for an organization and for improving the performance in future. It provides various benefits for strategic performance management. It is analyzed that the balanced scorecard is effective for Suncorp Group.
It can help the company in improving the various business functions like financials, administration and selling and distribution.
Balance scorecard is essential for measuring the performance of the employees in the organization. this report includes the application of balanced scorecard. It includes the application of balanced scorecard in Suncorp Group which deals in banking services and financial services. it is essential for the company to implement the balanced scorecard for managing the employee’s performance for achieving the objectives of the company.
Their principles are resilient people and communities, trust and transparency, responsible financial services and sustainable growth. This report includes the Balance scorecard and its various features and analyzes the difference between traditional performance measurement systems and balance scorecard. The balanced scorecard system is suitable for Suncorp group as it includes the number of employees and activities which are required to be monitored for improving future performance. Balance scorecard helps in measuring the performance which includes the different groups are financial, internal business process, customers and learning, and growth. It is used by the management for the strategic planning and techniques for management.
Suncorp Group Limited is a public company that deals in general insurance, banking, Life insurance, wealth management, and superannuation. It was founded in 1996 and its headquarter is in Brisbane, Australia. The areas in which they provide the services are Australia and New Zealand. It is the leading company in providing financial services to customers. they provide the services to approx. 9 million customers and number of employees are 13,300 and own $99 billion assets (Kliger, 2016). The other brands of Suncorp are AAMI, GIO, Apia, and Vero. They provide the various services and solutions to the customers by protecting the most valuable assets of the customers, they enable the business for achieving the full potential by setting the objectives, helps the customers in achieving their financial goals, deliver the exceptional and seamless experiences to customers (Bostan and Grosu, 2011). They are partnering through strategic alliances, partnerships, and joint ventures to meet the needs of more customers. Their purpose is to create a better way for their customers, shareholders, people, and communities. Suncorp Group provides the various financial services to customers along with the non-financial services as well as helps in improving the performance of employees for making effective decisions. The major factors which are to be considered in Suncorp Group are financials, customers, internal business processes for the learning and growth of the organization.
Balance scorecard and its features
Balance scorecard is a tool of strategic performance management which is used by the managers for keeping the track of the various activities which are performed by employees and keep them in their control for effectively monitoring the various consequence which arises at the workplace. It helps in measuring the activities of small scale in operations are aligned with the objectives of the company. this tool is used by the managers for designing and implementing the strategies at the organizational levels (Gibbons and Kaplan, 2015). It is used by the businesses, industries, government as well as non-profit organizations for aligning the activities of business with the vision and objectives of the organization. it also helps in improving the internal and external communications and helps in monitoring the performance of the organization for achieving the strategic goals. it includes the metric for measuring the performance as it helps the management in making strategic plan for identifying and improving the various business internal functions. The balanced scorecard helps in providing a wide range of organizational types as well as effective methods for designing. It is commonly used in two forms like an individual scorecard which helps in measuring the performance(Harris, 2016). It is used as strategic management system. The features of balanced scorecard are financial evaluation, measuring customer perception, identifying internal business processes, learning, and growth.
Financial evaluation – It includes the financial costs and for measuring the rate of return on capital and generating operating income of the business. it also measures the return on assets and profit margins.
Customer perception – it is necessary for the business to understand the perception of customers and balance scorecard helps in understanding the perception of customers with the help of surveys and asking the customers about the services which they are receiving and BSC helps in measuring the level of satisfaction of customers, customers retention rate and the market shares which areheld by the organization(Couzens, 2009).
Business process perspective – Balance scorecard helps in measuring the various costs and qualities of the various activities which are performed by the employees with the perspective of effective businesses.
Learning and growth perspective – Balance scorecard includes the feature of measuring the satisfaction of employees and retention rate of employees along with the knowledge management in the business. it is necessary to analyze the performance of the employees for achieving the objectives of the organization.
The various factors that are included in the balanced scorecard which are used in measuring the performance are the objectives, measures, targets, and initiatives.
Objectives – Every organization sets the objectives which include improving the performance for achieving the profitability and market shares. It is essential for the business to make the profits for the sustainability of the business in market (Awadallah and Allam, 2015). A balanced scorecard is needed in the business for increasing the focus on the business strategies and bringing their effective outcomes for improving the performance of the business (Amaratunga. Et al., 2001).it helps in leading to improve the performance of the organization by measuring the activities of the employees and their dedication towards the work. It helps in aligning the employees for meeting the strategies for the organization on daily basis. In business, balance scorecard helps in targeting the various major determinants which are crucial for the business in improving the performance in future. In business, the organizational strategies and vision are involved and it is necessary to improve the level of communication for measuring the performance of the employees and their targets for achieving the objectives of the business. it helps in preparing the timeframe of the projects according to their priorities and included factors that are required to be completed on time. It helps in creating the balance in the various components which are included for the vision and objectives of the organization (Alzubidi, et al., 2011). it is used as a tool that helps in improving the communication and process of feedback which links the management and employees effectively for monitoring the performance of the objectives of the organization. it is necessary to address the concerns of customers, optimize business process and enhance the tools of learnings and mechanisms. In the operational activities, vision and strategies are crucial for the organization. the process also includes communicating the operational activities to the various other departments of the organizations. It helps in planning the activities which help the managers in choosing effective strategies that help in achieving the objectives of the business. the various levels of the organization will be improved by taking the initiative for feedback and learning by adopting the changing circumstances.
Difference between BSC and traditional performance measurement systems
It is necessary for every organization to measure its performance for analyzing its position. It includes the strategies for assessing the financial as well as the non-financial position of the organization. The balanced scorecard is used for interacting the financial as well non-financial measures. It helps in analyzing the operations of the business, results and the capacities of the organization. it helps in learning the customers and their values for achieving the objectives. Performance measure helps the organization in prioritizing and helps in focusing on achieving the short term as well as long term goals (Payne, et al., 2009). The traditional performance management system in compare to Balance scorecard is not effective for the business. traditional performance management only focuses on the financial objectives of the organization. It is analyzed that the traditional measures only include the financial measures which are for the short-run (Zhang and Li, 2009). It mainly focuses to improve and monitor the business processes which already exist and does not help in identifying the new business processes and objectives for achieving success in the market. It only helps in improving the existing processes of the business and balance scorecard helps in bringing the new processes which helps the business in meeting the needs and desires of customers along with the financial objectives of the organization. In internal business processes, balance scorecard helps in taking the future and present innovation and helps in incorporating the innovation of the business. The traditional measurement system helps in focusing to deliver the existing products and services for presenting the customers and does not consider the incorporation for future processes. it includes the short process from the receipt of order from customer and process ends when the products are delivered to the customers.it results in controlling and improving the existing process of the business (Suncorp, 2013). In traditional methods, record keeping is not sufficient and for evaluating the performance and it is insufficient for the business as it does not consider the intangible assets. A balanced scorecard is efficient for the business as it helps in incorporating for monitoring the present performance of the company and equally helps in analyzing the time of the business for the future also. Balance scorecard helps in linking the performance of the company with the strategy, vision and objectives(Afonso and do RosrioCabrita, 2015).
Suitability of BSCIt is analyzed that a balanced scorecard is suitable for Suncorp Group. Suncorp group includes the various services which are provided for the customers and it is essential for the Suncorp group for building better strategic planning. A balanced scorecard is effective for building and communicating strategies. It includes the strategy map which helps the manager of the business functions and activities for creating an effective relationship with the different strategic objectives. with the help of strategy map it helps in ensuring the consensus in reaching the set objective of the organization. it helps in bringing positive outcomes and drives the performance of the business in future and the picture of future is created effectively (Smith, et al., 2015).
It helps in improving the strategic communications and execution for allowing the companies to make an effective communication strategy in internal and external of the organization. the projects and initiatives are aligned properly with the help of balanced scorecard for the different strategic objectives which helps in ensuring and providing the focus on delivering the objectives. in the Suncorp group, the application of balanced scorecard group system for designing the key performance indicators for the strategic objective of the business. it helps in measuring the performance which is effective for the business. it helps in giving high-quality information for management and making a better decision for the organization. the performance reporting will be improved by designing effective reports and dashboards for providing effective financial services to the customers. it helps in ensuring for managing and making the focus of management reports for the issues and helps the companies in monitoring the plan (Sharma, 2009). The process and organizational alignment will be better as balanced scorecard helps in enabling the companies to make the strategic objective, it helps in ensuring the business units and supporting the business functions for achieving the goals and objectives of the business. It will provide budgeting, risk management and analyzing the strategic priorities of the organization.
In order to conclude the report, it is analyzed that a balanced scorecard is effective for the Suncorp Group for measuring the performance and making the metric of the strategic objectives of the organization. it provides the various strategic benefits to the organization like better strategic planning, improving strategy communications, improving the performance of reporting and provides better information to management. In the organization, balanced scorecard provides the control of strategic dimensions to the management. It helps the company in communicating with the employee’s contribution to the business. It is analyzed that the balanced scorecard helps in clarifying and updating the visions and strategies of the organization. it helps the company in communicating the clear way which is required to follow by the employees and which helps in improving the performance of the entire organization. it helps in facilitating to provide the internal communication for the strategy, vision, and objectives of the organization. The available resources are used in an improved way after the implementation of balanced scorecard. The balanced scorecard is effective for an organization for improving current as well as future performance.
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Individual Assignment (Company: Suncorp Group Limited). (2019, Nov 22). Retrieved from https://studymoose.com/individual-assignment-company-suncorp-group-limited-essay