balanced score card in strategic management

The mission and vision of any business entity are some of the most fundamental pillars to the attainment of the long-term and short-term goals. They define the manner in which the business entity’s resources would be utilized so as to attain the intended outcomes. However, the management of a business would from time to time evaluate the progress and determine whether the operations are in the right course. Varied metrics have been devised to make this evaluation with the Balanced Score Card being one of them. The Balanced Score Card, devised my Kaplan and Norton, was aimed at remedying the deficiencies pertaining to the reliance on conventional financial measures. It enabled an enhanced evaluation of the capabilities of a firm to generate long-term value through the identification of the value’s key drivers. These drivers would then be categorized in four groups including financial, customer, internal/operational and innovation/learning perspectives. These cater for both the short-term and long-term sustainability of the enterprise. It is worth noting that the financial measure focuses on the short-term results while the others cater for future oriented activities that are necessary for the successful sustenance of the business entity. It seeks to offer managers a collection of performance metrics that are balanced between measures of future outcome drivers and outcome measures. The scorecard was also a technique for translating and clarifying strategy and vision, communicating and linking strategic measures and objectives, planning, setting targets and aligning the strategic initiatives, as well as enhancing or improving the strategic learning and feedback (Caudle, 2008).  The Cattaraugus County ReHabilitation Center has been applying the Balanced Score Card since 2002 as a way of flowing the strategic planning throughout the whole organization. The sole aim of this application was to ensure that every area in the center synchronized itself with the Center’s overall strategic plan. Looking at its report, it is evident that Cattaraugus County ReHabilitation Center did an effective job of implementing a balanced scorecard approach in a fashion that reflects their organizational mission and vision. This is especially considering its achievements with regard to the attainment of the four measures.

First, it is worth noting that the management in Cattaraugus County ReHabilitation Center succeeded in translating the vision into goals that fitted the four objectives. The process of translating involves the facilitation of engagement and gaining consensus from all the stakeholders in the business entity, as well as collecting feedback from them (Kaplan & Norton, 2007). This would indicate that the stakeholders are considered as crucial to the organization and makes the implementation process easier as no one is caught by surprise (Kaplan & Norton, 2007). Initially, the stakeholders were dismissive of the Balanced Score Card approach. However, the director managed to convince them about its importance thereby obtaining support from top-level managers. It is worth noting that the use of the Balanced Scorecard Paradigm triggered the involvement of individuals across the center in concentrating on the connections between every segment of the Center, as well as the strategic plan (Martello et al, 2008).

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In addition, it is evident that the Director or Strategic Planning, through the implementation of the Balanced Scorecard, managed to change the Center into a more customer oriented organization. The ReHabilitation Center has its mission as the improvement of the quality of life for individuals that have disabilities through the provision and/or access to all-inclusive services so as to help every person to maximize their independence. According to Murby & Gould, (2005), for scorecards for “customer intimates” to be optimally effective should lay emphasis on measures from the perspective of the customer. The ReHabilitation Center has tried to enhance and deepen its relationship with the consumers and their families through creating awareness on the available services, as well as enhancing the accessibility of both the services and the staff in the Center. The Center has strived to achieve operational excellence through the development of systems that would efficiently and effectively deliver services to the customers in the natural environment, as well as developing all-inclusive information systems and establishing measures and carrying out data analysis on outcomes so as to persistently enhance the quality of the services (Martello et al, 2008). In addition, the ReHabilitation Center has strived to create a secure and safe environment for visitors, employees and consumers.  This would effectively enhance the satisfaction of the consumers of the ReHabilitation Center, thereby enhancing the profitability and sustainability of the Center in the short-term and long-term. These are in line with the Center’s mission and vision of enhancing the quality of life of the consumers and increase accessibility of the services that the Center provides (Martello et al, 2008).

In addition, the Center has put in place measures that would enhance its financial stability in the long-term. Kaplan and Norton noted that the benefit accruing to the balancing of competing concerns is the establishment of the ability necessary for the sustainable growth of the organization. The Center has strived to enhance its financial stability through increasing its revenues and productivity. In this regard, the Center has made attempts to maximize prior funding, enhance non-discretionary funds, get new sources of revenue, as well as get new non-MA revenues (Martello et al, 2008). On the same note, the Center has strived to use the available funds at breakeven level and allow for efficient use of all resources.

In addition, the organization has used the Balanced Score Card to enhance its elasticity and capacity to improve so as to achieve its vision and objectives. Scholars note that the innovation/ learning perspective identifies the infrastructure of the organization that is necessary for supporting other perspectives. In this regard, the Center has acknowledged the crucial role that is played by technology in enhancing the efficiency of its operations, in which case it has enhanced the use of technology through employing it in support of onsite services, as well as the development of information systems (Murby & Gould, 2005). In addition, it has enhanced its operational efficiency through making an effort to increase the competencies of its staff and developing programs that recognize the employees’ efforts. These would not only enhance the operational efficiency of the Center but also enhance the accessibility of its services, leading to enhanced consumer satisfaction (Martello et al, 2008).

In conclusion, a Balanced Scorecard was aimed at remedying the deficiencies pertaining to the reliance on conventional financial measures. It allowed for enhanced evaluation of the capabilities of a firm to generate long-term value through the identification of the value’s key drivers. The Cattaraugus County ReHabilitation Center has been effective in the implementation of the balanced scorecard approach in a manner that reflects their organizational mission and vision. This has been attained through enhancing the accessibility of their services and staff to the consumers thereby enhancing their quality of life. In addition, the organization has used the Balanced Score Card to enhance its elasticity and capacity to improve so as to achieve its vision and objectives through the increased usage of technology in its operations. Its operational efficiency has been enhanced through improving the core competencies of the staff, which would go a long way in enhancing customer satisfaction and long-term sustainability of the organization.





Caudle, S (2008). The Balanced Scorecard: A Strategic Tool in Implementing Homeland Security Strategies. The Journal of the Naval Postgraduate School Center for Homeland Defense and Security. Vol. 4 No. 3, retrieved from

Martello, M., Watson, J., Fischer, M., (2008).Implementing a balanced scorecard in a not-for-profit organization. Journal of Business & Economics Research. 6(9), 67-80. Retrieved from:

Murby, L. & Gould, S., (2005).  Effective Performance Management with the Balanced Scorecard: Technical Report. Chartered Institute of Management Accountants.  Retrieved from:

Kaplan, R. S & Norton, D. P (2007). Using the Balanced Scorecard as a Strategic Management System. Harvard Business Review. Retrieved from org/2007/07/using-the-balanced-scorecard-as-a-strategic-management-system/ar/1″>





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