Research objectives Essay
Because of the success of balance scorecard, there are enormous volumes of information on the practice of BSC, but this study will examine the phenomenon of balance scorecard with Saudi Pepsi as the reference agency. The study will review the book (Translating strategy into action) by Kaplan and Norton as well as many relevant literature on the subject. It is the position of this study that BSC is a genuine business elevator, so this project will make the necessary efforts to present authentic evidence in support of that position.
research objectives: The objectives of this study are to outline and analyze the fundamental principles of the Balanced Scorecard system. The paper will trace the formulation of the system and review some of the available data on its effectiveness. Also the paper will make an objective judgement on the advantages and disadvantages of its application. Since this is designed to ascertain the adaptability of BSC to Pepsi of Saudi Arabia, the paper will conclude with a critical insight on how Pepsi could benefit from BSC, based largely on data from the performance review of other corporations that have implemented the BSC management system.
QUESTIONS EXPECTED TO BE ADDRESSED BY THIS STUDY: Though questions abound on this study, but this discourse will focus greatly on the matters that address the application, and the structure of Balance Scorecard. The major perspectives as advanced by Kaplan and Norton will be presented and analyzed in depth . It must be emphasized that the system is an objective, responsive system. It could be followed with appropriate data analysis, and adjustments could be made when desirable.
The paper will provide the necessary steps that could be followed in order to attain a desired result. Because this dialogue has taken sides in favor of the BSC, it will clearly present the known benefits of implementing the system. But it must be emphasized that there are some drawbacks in the BSC system. Those drawbacks would equally be outlined. All the important steps in the implementation of the BSC will be discussed, and the different roles that different levels of a corporate entity would need to play will be enumerated as well.
All of the team members must not only make a commitment, they must participate in the process. Every department must know its participating role in the implementation of BSC, and this work will detail what those roles ought to be, and how to ensure that they are diligently executed. It should also be recognized that it is not enough to design and construct a BSC, the question is would it be used? No benefits would accrue if the built BSC is not used. Of course the most important question is that of the applicability of the system by Pepsi Saudi, that question will be adequately addressed in this process.
CHAPTER TWO: BOOK AND LITERATURE ANALYSIS. PERFORMANCE MEASUREMENT: Before the advent of BSC, a questionnaire by the national association of accountants indicated that about 60% of accountants were “not satisfied by their performance measurement system”, primarily because of its reliance on purely financial metrics. But since the implementation of BSC that dire view is turning around. (Nevin 2003).
Performance measurement technique is used to compile data on many subjects, high school academicians use performance measurement to keep record of behaviors of students whose behaviors required to improvement. The significant point here is that the actual behavior improvement could be measured empirically, scientifically and with discerning accuracy. So it is not surprising that corporations would also adopt performance management system. Corporations use performance measurement to keep record of its effectiveness, and its efficiency. It is used to tabulate quality and productivity. It is also used to keep records of timeliness and safety.
(Nevin, Paul 2003). With an effective performance measurement system, companies can a develop a sustainable structure for its strategic planning, and its goals. It helps companies assemble a clear mission, with appropriate resources, on long term intervals. With it companies can maintain accountability for its performance or lack of performance. By using performance measurement companies are better able to analyze and validate its results. It can also use it to acquire timely feedbacks, which could be used to change the direction of a given project or to move a project forward.
So in total, performance measurement could help and organization to make informed decisions, to appraise its performance and to initiate an improvement as needed. (Nevin, Paul 2003). I suppose we can say that performance measurement is a close “cousin” of BSC. However a performance measurement system could limit its benefits if it loses sight of key performance drivers. And it could be quite expensive to set-up a performance measuring unit, but most companies seem to agree that the cost is worth it at the long run. (Kaplan & Norton 1996).