Week 8 - Lesson 8
Reading Assignment
Read Chapter 13: Strategic Control
Read Chapter 14: Innovation and Entrepreneurship
Review PowerPoint slides for Chapters 13 and 14
Lesson Activity
Discussion Questions (DQ). Please post in the Discussion Forum by this week Friday 11:59 P.M. (PST).
1. Why is strategic control important in the strategy implementation process? What are the four major types of strategic control? What are the pros and cons of each?
2. The balanced scoreboard approach has gained popularity in recent years. What is this approach and how does it integrate strategic and operational control?
3. Total quality management involves a continuous improvement approach. How is continuous improvement related to innovation? What is
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Strategic thrusts and milestone reviews are two types of implementation control. First one provides information that help determine whether the overall strategy is shaping up as planned, and the second one helps with monitoring the progress of the strategy at various intervals or milestones.
2. The balanced scoreboard approach has gained popularity in recent years. What is this approach and how does it integrate strategic and operational control?
The balanced scoreboard approach is a management control system that enables companies to clarify their strategies, translate them into action, and provide quantitative feedback as to whether the strategy is creating value, leveraging core competencies, satisfying the company's customers, and generating a financial reward to its shareholders.
Just like startegic controls and comprehensive control programs, the balances scoreboard approach bring the entire management task into focus. Organizational leaders can adjust or completely change their company's strategy based on feedback from a balanced scoreboard approach as well as other strategic controls.
3. Total quality management involves a continuous improvement approach. How is continuous improvement related to innovation? What is breakthrough innovation? What are the risks and rewards associated with innovation?
Continous improvement is the process of relentlessly trying to find ways to improve and enhance company's products and
Soderberg, Kalagnanam, Sheehan, and Vaidyanathan (2011) presented the balance scorecard as a strategic planning procedural tool used by organizations to balance financial concerns, customer concerns, process concerns, and innovation concerns with the main purpose of developing appropriate strategy in favor of a more favorable market position (p. 689-690). Similarly, Lawrence and Webber (2008) illustrated
Continuous improvement is a quality philosophy that assumes further improvements are always possible and that processes should be continuously re-evaluated and improvements implemented. It is also the seeking of small improvements in processes and products, with the objective of increasing quality and reducing waste. It is believed that an organization must constantly measure the effectiveness of its processes and strive to meet more difficult objectives to satisfy customers.
The Balanced Scorecard (BSC) is a powerful diagnostic tool which provides managers with a vision and strategy of the organization to completely value the performance of the organization(Roussas & Mccaskill 2015). BSC integrates financial measures with several crucial factors to create a long or short term plan(Huang 2009). This system emphasizes ‘leading and lagging indicators, internal performance perspectives, and quantitative and qualitative objectives’(Roussas & Mccaskill 2015). BSC works by four perspectives:
Balanced scorecard is a methodological tool that businesses use to get a measure by which someone can determine whether the set goals have been met or exceeded. It adds non-financial metrics to traditional financial metrics to give a well-rounded view of the performance in an organization. Balanced scorecards also help organizations to predict their success in meeting their overall strategic goals.
There are four perspectives when it comes to balanced scorecard. First one is learning and growth which means how the information and knowledge are processed and turned into competitive advantage against other companies. Second is about product manufacturing and making sure that all the products are made the same without any defaults. Third one is about customer satisfaction and making sure that customers are happy with product, service and price. Fourth one is about financial performance and making sure that company’s financial data is used properly.
“The balanced scorecard should translate a business unit’s mission and strategy into tangible objectives and measures. The measures represent a balance between external measures for shareholders and customers and internal measures of critical business processes, innovation and learning and growth. The measures are balance between outcome measures, the results of past efforts, and the measures that drive future performance. And the scorecard is balanced between objective, easily quantified outcome measures and subjective, somewhat judgmental, performance…”
Balanced scorecard is the traditional methods healthcare of strategy formulation for example, extensive consultation resulting in a complex detailed strategic plan. Futhermore , it needed to introduce a new approach from outside of healthcare then followed a recent merger as well as strong external influences that were impacting negatively and would continue to do so unless they developed and implemented the appropriate
The balanced scorecard is used in business to make sure the business is meeting the metrics that are previously established. According to Edwards (2011), “[by] focusing on both financial and non-financial performance targets and outcomes, the balanced
The balanced scorecard is a strategic planning and management system is used to help align activities of the vision and strategy of the organization, and apply it to the overall
The balanced scorecard is a strategic planning and management system that was developed by Dr. Robert S. Kaplan and Dr. David P. Norton in the early 1990's. Their goal was to provide organizations with a clear understanding of what to measure in order to improve performance and results (Balanced Scorecard Institute 2014). The balanced scorecard is a framework that allows an organization to measure performance and compare it to the organization’s strategic objectives and goals (Kinney and Raiborn 2013, 10).
Continuous improvement is a perpetual quality management process that relies upon all stakeholders to participate in a process or activity to enhance efficiency, sustainability and quality outputs by systematically introducing small effective changes that result in improvement. By involving all stakeholders in the practice of identifying areas for improvement, the overall quality output of an organisation should gradually improve over time.
This case study is focused upon the idea of Ann Taylor’s balanced score card and control systems to guide and monitor strategy implementation in order to help it move competitively forward. It also includes analysis
A balanced scorecard is a critical foundation in guiding organizations strategic plan, it also provides a road-map for the completion of objectives. These objectives link the company 's long-term goals originating from the company 's vision, mission, and values. In developing the balanced scorecard for Cloward Cuts (CC) the following strategic objectives were set up as road-map for the company to use. Taken into consideration were the financial, customer value, processes, and employee growth and learning objectives (See Appendix A for Balanced Scorecard).
Introduction - Total quality management (TQM) has been defined as ‘continuous improvement of every production output whether it be a product or a service, by removing inefficient variations and by improving the backbone of the work process’. International managers like their domestic counterparts have found that incorporating the notion of total quality management into their management process and style can give the competitive advantage.