Notesale: Turn your study into money

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Introduction
This report aims to explain the main objects of the Balanced Scorecard business examination
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It should produce information, not data
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It has three small café
shops and each is situated in a different public park
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The charity’s main sources of funding are from the ‘personal budgets’ that
come with each service user (people with learning difficulties)
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Why a charity needs a Balanced Scorecard?
The charity needs to know its objectives and needs to set certain measurements to know if it has
achieved them
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How can we manage to do that? Certainly, there are many ways for completing
this action, but the most common and popular and for someone the best way is through
developing a Balanced Scorecard
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It will show the charity’s weak points
and will help to overcome them
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Balanced Scorecard – Analysis
The Balance Scorecard was developed and firstly introduced by Kaplan and Norton (1992)
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(Robert S
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Atkinson, 1998)
The balanced scorecard does not simply focuses on financial objectives
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It has four key perspectives: Financial, Customer,
Internal business and Learning and Growth perspective
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(Bhimani, 2010) In this
case, it is a little bit confusing whether the goals should be focused only on the café shop
customers or on the charity service users e
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the people with learning difficulties
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The five highlighted goals under the customer perspective are as follows:
i
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Proper measure for this goal is the
percentage interest in membership program
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It will be helpful to the charity to know whether or not they should start a
membership program
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ii
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For example, if the charity ignores the opinions and
the comments of its customers, it will not know if its customers are happy and
satisfied with the provided products and services
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A signal, and in this case a measure, that the
charity is meeting its customer needs is the number of complains
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This measure will be useful because the
charity will be aware whether or not is providing the products and services which the
customers are happy with
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iii
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This goal will tell us more about the
service users’ experience
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The measurement will show the percentage of the service
users who are happy with the charity services and have given a positive feedback
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This is a
certain way through which the charity can best understand what their service users
expect form the charity training program
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Here can be mentioned another very
common tool for measuring satisfaction – survey
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iv
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This goal
will help the charity to become more recognisable and it will attract more people with
learning difficulties to join the training program
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This means that other people are aware of the charity
and they make it more popular among the public society by suggesting its services
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Improve product and service quality
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It is calculated using the total number of customers and the
number of returning ones
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However, on the other hand a high percentage number
can mean that a big part of the total customers are returning and there are almost no
new customers
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Internal business process
The internal business perspective provides allowance for managers to figure out what should the
organization excel at? , is the organization running well internally and whether or not its products
and services meets the customer expectations
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org, 2014)
The five significant to the charity goals under the internal business perspective are as follows:
i
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The
measure which can apply to this goal is the number of advertising events
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This goal and measure will be useful to the charity, because it will
show if the organization is enough well recognisable and if people with learning
difficulties are enough aware of its service provided
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Develop new suppliers
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It can provide new experience both for the charity organization and for its
customers
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However, they
should maintain their supply of most recognisable products and those one which are
most demanded
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However, they also have to carefully decide
how many suppliers they should have to avoid oversaturation with products
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Improve employee success
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The main purpose of the charity is to help its service users to find a
future job
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This measure is useful to the charity because it
shows how good the organization is training its service users and if the training is
good enough so they can find a future job
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iv
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It is important to engage several parties
into the innovations because the organization will gain more and different ideas and
the chance of finding a useful one will be greater
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They will be happy and will commit themselves more into their
further work
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It can tell the organization how committed are the
service users to their job and are they interested in extra circular activities
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Increase staff motivation
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They will be encouraged to perform better and this can lead to boosting
the employees’ skills
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The measure for this goal is the staff
turnover e
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the percentage of employees who leave
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If the staff turnover figure is very high, the charity should start thinking in
way of motivating its staff more
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It is
important to be aware that the goals under this perspective are concerned with the organization
as a whole, not with its staff learning and growth
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Implement more researches
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This will be useful for the organization because the more researches do the
organization, the more knowledge it will gain
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ii
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The measure which can be used is the number of service
users per trainer
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However, if one trainer trains four or five trainees, the
learning process will not be enough effective, because the trainers will not have
enough time to provide attention to each service user
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Based on this
information, the organization can decide whether or not the trainers are enough and
whether should they hire more
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Moderate the training program
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A proper measure can be the
percentage learning efficiency
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This is focusing the charity attention to establish a
test at the end of the training program which will indicates how effective was the
service users learning and training
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iv
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This goal means that the organization can
create more training places for more service users
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This information
will be helpful to the organization to see whether or not they are of an interest to the
people with learning difficulties
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Improve health and safety awareness
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The measurement is the number of accidents to staff during operations
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If
the number of accidents is high, this should point out the charity to hold a future
health and safety training sessions
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In order to achieve the financial objectives, the organization should highlight on its nonfinancial objectives
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But let’s imagine for a moment that the balanced scorecard is only focused on the financial
objectives
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Why? The answer is quite obvious for everybody
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We will not be able to evaluate holistically the organization and its objectives
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The financial perspective goals which are stated in the balanced scorecard are listed as follows:

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i
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The proper measure is the revenue after expenses and
taxation
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It will be useful
information to the charity because if they are performing not so well in this area, they
can see this from the balanced scorecard and can work towards improving their
finance health
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Increase fundraising events
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It will show whether the events are enough profitable
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However, they should
not ignore the cost of those events
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iii
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The goal is measured through the percentage asset
utilization
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The goal can be
helpful for the organization because if they maintain the level of assets, they can
prevent overly high level of assets, which on its turn can lead to overspending money
on assets or on the other hand lack of assets, which on its tur will lead to hardly
running the organization
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Introduce new products to the business
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This can be helpful to the charity by showing how big the demand of the new
products against all products is
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For example, if one of the charity
organization café shops introduces a new sort of strawberry cake and if the
percentage revenue from this cake is a high number, that means that the new cake is
highly demanded by the customers and that they should continue supplying it to their
customers (we presume that the price of the new cake is similar to the other cakes
which are already in the menu)
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Survival
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This information will
be helpful to the organization because it will provide a view of the organization
financial operations and financial health
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It is crucial to the organization’s day to day running
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Create customer
membership program

Percentage interest in
membership program

1
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Increase customer
satisfaction

Percentage of
complains

2
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Increase service users’
training satisfaction
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Increase people with
learning difficulties
awareness of the
charity services

Percentage service
users, who joined the
training program
because it was
recommended to them

5
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Improve employee
success
4
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Increase staff
motivation

Percentage of service
users who get a job in
catering after the
training program
Average number of
suggested
improvements per
service user
Staff turnover

Financial perspectives

Learning & Growth
Goal

Measure

Goal

Measure

1
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Reduce expenses

Revenue after expenses
and taxation

2
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Increase fundraising
events

Average fundraise
income per event

3
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Improve assets
utilization

Percentage asset
utilization

4
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Introduce new
products to the
business

Percentage revenue
form new products

5
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Survival

Cash flow

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