Open AccessA BALANCED SCORECARD ANALYSIS OF PERFORMANCE METRICS IN PROFIT ORGANIZATION
Author(s) -
Predrag Pravdić,
Rada Kučinar
Publication year - 2019
Publication title -
anali poslovne ekonomije
Language(s) - English
Resource type - Journals
ISSN - 1840-3298
DOI - 10.7251/ape1315014p
Subject(s) - balanced scorecard , process management , business process , performance measurement , process (computing) , business , strategy map , set (abstract data type) , strategic management , customer satisfaction , quality (philosophy) , corporate governance , strategy implementation , computer science , knowledge management , profit (economics) , marketing , work in process , philosophy , epistemology , finance , economics , microeconomics , programming language , operating system
Management processes directed primarily to the user and thus improve theefficiency and effectiveness of operations in exceeding user demands andexpectations. So that organizations realize the benefits on all levels, as compared withexternal partners and business environment, as well as internally within theorganization. But in practice, systems for managing corporate change often point tothe shortcomings and lack of commitment at the level of corporate governance inorder to improve the efficiency of the process. Taking into account the problems theyface at the same company, Balanced Scorecard - BSC stands out as especially suitabletool for the management of corporate change. BSC translates mission and strategy ofthe organization in the comprehensive set of measures that provide a framework forthe implementation of the strategy. But many senior managers recognize that nosingle measurement can provide enough information about the critical areas of thebusiness. Therefore, a balanced set of measurements is needed. Organizations todayuse decentralized business units that focus on intangible knowledge, capabilities, andrelationships created by employees. Some organizations understand that strategy mustbecome a continual and participative process. The change from centralized command,and financial measures that come from past actions can no longer measure theobjectives that need to be addressed. We must measure the strategy and the best toolto do this is balanced scorecard. BSC makes it possible to establish a model in theprofit organization, so that the strategic aspects of the observed set relevant objectivesand include features that will be measured. BSC aims to improve business processesfor a streamlined process can improve product quality to customer satisfaction. Sosatisfied and loyal customer is a guarantee of higher profits. The balanced scorecardcombines an effective measurement system that helps solidify a company’s strategicobjectives with a management system that can help drive change in key areas such asproduct, process, customer, and market development. The measures of the balancedscorecard helps focus a company’s strategic vision, encourages thinking about currentand future success and helps provide a balance between external and internalmeasures. This paper presents BSC modeling of key success factors represented instrategy map of profit organization and how it affects the organization's measurementsystem.