Financial perspective Essay Example for Free

Financial perspective Essay As seen balanced scorecards does not totally disregard financial measures of performance. Thus, timely and accurate data is essential to the successful implementation of balanced scorecard. This implies that handling and processing of financial data should be swift and centralize perhaps fully automated. The financial data should be integrated with corporate databases and especially data regarding risk assessment and cost benefit analysis (Stewart, 2000). Learning and growth perspective This category recognizes that people are the only repositions of knowledge i. e. people posses intangible assets of the company. In this information age intelligence is the heart of organization success and hence Ned to ensure continuous learning through employee training. This is because technology changes rapidly as aloes people exiting an organization for greener pastures. (Lipe Salterio, 2000) As a result, corporations’ culture and attitude need to be shaped to ensure that people within the organization pursue self-improvement and reverse brain drain to other companies. The cost of recruitment and training people is usually high and measures of allocating the funds to reap maximum benefits need to be developed. Knowledge sharing is equally important. Notably not all training translates to learning but the most effective learning occurs, using mentors and group discussions and communication within the organization. Intranets may contribute towards facilitating communication and learning (Norton, 2001) Process perspective This category identifies two kinds of process within the business one, the mission oriented processes and two the support process. Support processes are repetitive in nature and nature and hence easier to measure on the other hand mission oriented involve government offices and hence difficult to measure. Attention to these perspectives enables managers to know how well the operations of the business are and whether they are in tandem with customer requirements and expectations. (Kaplan Norton, 1996) Problems associated with financial measures. The move to adopt the balanced scorecard at Intel has been triggered by the inefficiency of financial measures to link corporate strategy and goals to measurement it ahs been difficult for Intel to link the strategies used in say marketing and advertising campaigns to the effects or anticipated results. Thus a shortfall in gauging performance has been experienced.. As pointed out, Intel faces strong competition from Microsoft and there has been to re-strategize its operations in order to gain competitive advantage and adopt with the changing technology. The previously used financial measures are outdated as the PC industry how shifted from the industrial age to become more knowledge based. White previously, Intel management of the company’s property equipments and plant was adequate to accord the company competitive edge, now a days the intangible asset i. e. the employee’s knowledge plays a great role in ensuring that Intel stays ahead of its game. The company’s income statements, and balance sheets are still used to capture revenues and profits but they still account very little to the company’s market value hence the need for balance scorecard. The balanced scorecard becomes handy for Intel to link its strategy i. e. deploying its intangible assets to the company’s goal i. e. dominate the PC industry. The problem of financial measures utilized at Intel is its failure to measure how effective customer relationship operating process product innovation skill of the workforce culture and other variables are in contributing to the company’s goal of maintaining lead in the PC industry. The financial measures i. e. balance sheets and incomes statements fail to assist management describe its asset and link it to strategy and goal. The pitfall of this measure is that without a clear description of the situation and the company’s possessions in terms of assets then it is difficult to know what to manage or measure. Recommended design and implementation of Intel’s balance scorecard Intel balance scorecard design will incorporate strategy aimed at increasing the company’s revenues by twenty percent in a period of 18 months. In order to do so the balance scorecard components will be used in designing the strategy. The invaluable contribution of the employees at Intel is recognized in this design. They contribute indirectly to the company’s revenue investment in the employees will improve their functional competence and hence lead to better quality products and innovations hence greater customer satisfaction. This satisfaction in turn will translate to higher sales and thus increase in revenue and profit margins. Rewards systems for hardworking employees will be given in form of cash incentives and recognition awards. More importantly, dead wood employees will not be retained in the company, as they are liabilities to the company. The workplace culture and climate will also be representative of the company’s goal; hence performance appraisals will also be used to boost hard work. The no-office policy at Intel will be retained in order to ensure equality among the company’s employees. Communication and knowledge sharing will be boosted by upping Intel intranets and using monthly meetings in departments to achieve this end. Intel will have to upgrade its internal processes to improve its customers and shareholders satisfactions hence achieve revenue. The way to do this will be by availing its microprocessors speedily to its customer’s at the time when needed. Intel will need to keep track of releases of operating systems by software hence increase sales and revenues. Intel should also develop new products and services that are relevant to meeting customers’ wants and needs. Perhaps, there is need to identify new markets in order to broaden its customers base also promote satisfaction among customers. Grievances and complaints will handle with immediacy and accuracy. Additionally, Total quality management and zero tolerance production techniques will be used in its manufacturing plant to ensure that consignment delivered to customers have zero defects. Intel will also ensure that it exercises social responsibility and that its activities benefit the greater society and don’t harm the immediate environment. The customers’ perspectives components of Intel balance scorecard will work towards creating a image of value and distinction in its customers. Intel will achieve this by incorporating a mix of different products and service that uniquely identify the customers to the company. Intel will sustain intimacy with its customers by being a representative of the customers’ diverse traits. It will ensure indiscriminate customers service to customers regardless of race, gender or religion its branding and advertisement campaigns will be acceptable to the customers. Intel will employ competitive pricing to attract and retain customers. At the same time Intel will assure great performance and auxiliary features in its products so that customers get value for their money, hence boost revenue. Delivery lead times will equally be reduced by half in order to encourage customers to buy more from them. The financial position of Intel will be influenced by the effects o customer’s internal process and the learning perspectives of the company’s workforce. Ultimately, if the positive changes on these sections are effected then the company will realize profitability and increased revenues. In effect, the company’s value in the eye of the shareholder will also improve, more to that; an increase in company assets value will be evident.