1. 1. Employee Appreciation A New Balanced Scorecard Garrick Dean Author Note: This paper was created for Human Capital: Two Sided Accountability, Course MG545, Dr. Tammy Fitzpatrick in the MBA Program on August 13, 2015.
2. 2. Introducing: The Balanced Scorecard by Kaplan and Norton. Why do we need a scorecard? What is a scorecard going to bring to the organization? What can we expect from this scorecard? Introduction: Scorecard Measuring Appreciation
3. 3. The Balanced Scorecard The Balanced Scorecard was created by Dr. Robert S. Kaplan and David P. Norton in 1996 The Balanced Scorecard is a concept helping organizations translate strategy into an action. The scorecard starts at the company vision and strategies, from there critical success factors are defined. Measures are constructed that aid target setting and performance measurements in areas critical to the strategies. (Kaplan, & Norton. 1996).
4. 4. Principles ofThe Balanced Scorecard
5. 5. Measurements Used inThe Scorecard 1. Financial Perspective 2. Customer Perspective 3. Internal Business Perspective 4. Learning and Growth Perspective (The Balanced Scorecard Institute, 2015)
6. 6. 4 Major Principles Financial Return of capital employed, economic value added, sales growth and cash flow. Customer Customer satisfaction, retention, acquisition, profitability and market share. Internal Business Process Internal Value Chain Measurements: 1. Innovation identifying customers future needs. 2. Operations quality, cycle time and costs. 3. Post Sales Service warranty, repair, treatment of defects and returns. Learning and Growth 1. People employee retention, training, skills and morale. 2. Systems availability of critical real-time information need for front line employees.
7. 7. Benefits toThe Organization The balanced scorecard helps organizations find measurements on how to improve financial measures as well as ways to help innovate employees. Employee happiness is linked with performance and overall attitude. Happy Employees = Organizational Growth! We want to see our employees happy and show appreciation for their hard work and dedication to the company.
8. 8. Why isThe Data Measurement Meaningful? Data collection helps teams and management assess the health of their processes. Every process can be improved. Data helps find areas of weakness and strength. When collecting data it is important that we are collecting the right data. We are not trying to focus on financial measures or product measurements with this scorecard, but data about employee appreciation, innovation, and overall satisfaction. (Martin. n.d.)
9. 9. What DoesThis Data Mean? Once data is collected a new appreciation program will be developed to help recognize the great work your employees do everyday. The data is intended to help executive leadership and management see where there can be improvement and how to make changes that help empower employees. Data collected is meant for growth purposes and to see how we can become stronger as an organization. (Pease, et.all. 2012)
10. 10. Implementation of Scorecard Data Once data has been collected we will begin a series of management trainings on how to implement appreciation into their teams. One-on-One recognition Peer recognition Leadership recognition Gifts and bonuses for hard work to show appreciation How to recognize on a daily basis How to empower employees to recognize each other
11. 11. Conclusion The Balanced Scorecard is a powerful business tool in gathering data and compiling key measurements to help with business growth. In using the scorecard try to avoid pitfalls in misinterpretation of data and not having the foresight to see that the data can be used for long term use. Many organizations only use the score card for financial needs and for short term fixes for issues, the scorecard is much more robust and prosperous than those two uses. Remember to use the scorecard data to see ways to grow the employees as well as the company.
12. 12. References Balanced Scorecard Institute. (2015). Balanced Scorecard Basics. Balanced scorecard Institute. Balancedscorecard.org/Resources/About-the- Balanced-Scorecard Retrieved August 13, 2015. Kaplan, R. & Norton, D. (1996). Translating Strategy into Action, The Balanced Scorecard. Harvard Business Review Press; 1 edition Martin, J. (n.d.) Summary of the Balanced Scorecard. Management and Accounting Web. maaw.info/Bal/ScoreSum.htm Retrieved August 13, 2015. Pease, Gene, Boyce Byerly, and Jac Fitz-enz. (2012). Human Capital Analytics: How to Harness the Potential of Your Organization's Greatest Asset. John Wiley & Sons P&T.