Is Balanced Scorecard easy to do?

custom_life_balance_13780Balanced Scorecard (BSC) is a management tool to measure the organizational implementation of the vision and strategy against the business and operating Key Performance Indicators (Carpenter & Sanders, 2009). BSC transform the strategy into tangible and intangible performance measures that make the strategy a dynamic process (Carpenter & Sanders, 2009). BSC is an innovative method to dissect and direct the strategy into four principles. The principles or categories that each strategy should have are finance, external relations, internal business process, and learning and growth. The vision and strategy can be mapped through the BSC information to give a clear representation of the strategy to the stakeholders and shareholders.

Some organizations think that BSC is a complete waste of resources and takes time to set up the required measures (Linna & Seal, 2009). The measure maybe is outdated and need change within a few months. Success in the internal processes or human resources is sometimes not rewarded (Linna & Seal, 2009); however, the rewards are usually linked to the financial measures only. BSC may be a good performance dashboard if the tangible measures are updated frequently, however BSC will not be dynamic enough when most of the measures are intangible and cannot be updated frequently.

References:

Carpenter, M. A., & Sanders, W. G. (2009). Strategic management. Upper Saddle River, NJ: Pearson Prentice Hall.

Linna, Y., & Seal, W. (2009). The balanced scorecard. Financial Management (14719185), 27-28.

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Competitive Advantage

Market imperfections can be in the form of monopoly, externalities or public goods, but sometimes defined as anything that interferes with trade (DeGennaro, 2005). The organizational competitive advantage can be achieved by adapting to the external trends and events and adapt to the changes in capabilities and resources. The organizations can make the competitive advantages by formulating and implementing strategies that help adapting and taking advantage of these changes (Ogrean, Herciu, & Belascu, 2009). Organizations can definitely take advantage of the market monopoly and keep up its position until another competitor force its market penetration. Externalities can be used as a competitive advantage when the organization anticipates and plan for the positive externalities. Over fishing in a place would increase the demand when the fish supplied to the market is less than the demand. The organizations can take care of this externality by anticipating the decrease in the supply and importing enough supply of fish for the consumer in the local market.

Rolls-Royce found out that its automobile business was not competitive and its jet engine market was booming. Rolls-Royce sold its automobile business and concentrated on leasing jet engines to the airline companies (Carpenter & Sanders, 2009). The leasing strategy made Rolls-Royce take larger share of the jet engine business (Carpenter & Sanders, 2009). Xerox had good innovations coming from its research center in Palo Alto, which could have been good competitive advantages. Innovations like personal computers, bit-mapped, desktop, icons, and the use of mouse and menus (Carpenter & Sanders, 2009; Rothkopf, 2000). Xerox did not use these competitive innovations and lost a good chance to be a leader in these markets (Carpenter & Sanders, 2009; Rothkopf, 2000).

References:

Carpenter, M. A., & Sanders, W. G. (2009). Strategic management. Upper Saddle River, NJ: Pearson Prentice Hall.

DeGennaro, R. (2005). Market Imperfections. Journal of Financial Transformation, 14(2005), 107-117.

Ogrean, C., Herciu, M., & Belascu, L. (2009). Searching for sustainable competitive advantage– From tangibles to intangibles. Journal of US-China Public Administration, 6(4), 1-9.

Rothkopf, M. H. (2000). Under the Mike-R-Scope: What happened at Xerox PARC? Interfaces, 30(6), 91-94.

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كيفة وضع الاهداف الشخصية والمهنية

I would like to apologize to the blog visitors and readers for presenting this post (video) in Arabic language. Many visitors and friends asked me to blog in Arabic and this is my first start in the blog.

Part 1

Part 2

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Locus of Control

Locus of control is an indicator of the individual’s sense of control over their successes and failures (Navahandi, 2006). Individuals’ beliefs that events they are experiences are due to luck, fate, or their own behavior (Scott et al., 2010). Individuals with strong internal locus of control believe that their success and failures are caused their actions. Individuals’ with strong external locus of control believe that what is happening to them is the result of chance, luck, or fate (Navahandi, 2006; Scott et al., 2010). Navahandi (2006) stated that leaders with strong internal locus of control are more likely to lead their teams better than leaders with internal locus of control. Managers and leaders with external locus of control believe that external threats are unmanageable, but the ones with internal locus of control believe they can cope with stress and handle their future (Scott et al., 2010).

References:

Navahandi, A. (2006). The art and science of leadership (4 ed.). New York: Prentice Hall.

Scott, S. L., Carper, T. M., Middleton, M., White, R., Renk, K., & Grills-Taquechel, A. (2010). Relationships among locus of control, coping behaviors, and levels of worry following exposure to hurricanes. Journal of Loss & Trauma, 15(2), 123-137. doi: 10.1080/15325020902925985

Wood, A. M., Saylor, C., & Cohen, J. (2009). Locus of control and academic success among ethnically diverse baccalaureate nursing students. Nursing Education Perspectives, 30(5), 290-294.

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