Introduction
The balanced scorecard strategy applies different management approaches. The general objective is to enhance and improve the performance of an entire organization. However, organizations have the capacity to choose the best approach applicable within their unique contexts. As indicated in the article, the president of Futura values the integration of the specified learning perspective (Niven, N.D.). Indicatively, there are several reasons attributed to this noble decision. The company has provided priority to the learning and growth perspective. This is because it is a major driving force for success.
The president of Futura industries denotes that organizational success and performance is determined by a complexity of elements. These elements are intertwined and have value significance on each other. Other “balanced scorecard,” (BSC) strategies mainly focus on the monetary aspects. In certain instances, such BSC strategies have concentrated on the operational metrics needed by regulatory agencies. These might include compliance agencies and consortiums that offer ISO certifications. It is imperative to indicate that the learning and growth perspective forms a fundamental foundation for all factors of efficiency within an organization. The approach enables high level of systematic growth, organizational development and quality innovation (Spitzer, 2007). Generally, these are eminent building blocks in the perspective.
The president of the organization highlights the significance of these building blocks in the generation of success. These might be achieved within other potential dimensions of performance. Several basic quadrants experience quality improvement through application of this system. Some of these include client service, financial aspects and internal procedures. Notably, the Futura industries realized a potential rise in its revenue within three years following the application of this perspective (Kaplan & Norton, 2004). Observably, this was realized without an increase in the number of workers. The perspective is critical for the organization because it helps to put people first. Ensuring employee welfare and engagement helps to increase the level of organizational performance. These are the crucial reasons why Futura’s president emphasized on the “learning and growth perspective”.
Analysis
Futura applies the learning, innovation and growth dimension as the basic platform for performance. This is fundamental in the measurement and evaluation of the development within a specific organization. As indicated in the Futura industries balanced scorecard of 2002, there are various important measures that require evaluation. The Futura industry measures the financial aspects of its performance. Apart from this, the customer’s perspective assumes the highest level of consideration. There is also an internal review of the entire industry (Gumbus & Johnson, 2003). This entails the evaluation of the internal processes involving business operations and negotiations. Learning innovation and growth has been applied to increase the level of employee output. Moreover, a vital measurement focuses on the quality of novel contributions and participation of the employees. All these critical measurements are applied in the evaluation of continuous organizational processes.
The initiatives are aimed towards the provision of safe, challenging and congenial work environment. Particularly, this applies to all relevant personalities. These principles have also helped the industry to hire the workers whose beliefs and aspirations resonate with the organization’s mission and vision. The measurement focuses on the percentage of the general income (Spitzer, 2007). Additionally, the free cash and the average lost time include some of the important measures that are examined within the financial domains. An evaluation of the level of client involvement focuses on a variety of measures. As evident in the Futura industry’s article, these measures include client satisfaction, complaints and the rate of timely deliveries.
The rate of turnover is examined by monitoring the general inventory. This process may also entail an observation of the finished good turnover. Ideally, these elements of measurement help to illustrate the rate at which customers are able to access the already produced goods. The market composition also provides a critical measure for the efficiency of the brand and product promotion interventions. Generally, the operational expense is examined in terms of its speed and quality (Kaplan & Norton, 2004). The ability to plan and deliver effectively is important for a continual process of cost reduction within the industry. All these factors are crucial in the measuring and evaluation of the general organizational performance.
Conclusion
Comprehensive integration of the dimensions within the learning and growth perspective is important. The Futura industries have demonstrated an explicit integration of all measures of performance (Kaplan & Norton, 2004). It is evident that the initiative aims to encompass the basic components of organizational learning and development. Ideally, it must be indicated that an examination of the various elements depict critical issues. They consider the complete scope of the company’s learning and development outlook. Investing in the development of novelty and innovation is appropriate for effective performance. The leadership of Futura industry appreciates the need to advance its innovative strategies. Open-mindedness is one of the critical components of constructive novelty. However, it is vital to note that such basic components cannot be achieved in a vacuum. Therefore, the leadership has recognized the need to indulge its employees and stakeholders.
As indicated in the study article, the science of “putting people first” provided potential and transformative results for the entire organization. The measures applied in the process covers employee and stakeholder involvement. Principally, these elements form the basic springboard for successful performance within all organizations. Leadership is a very important component of strategic management. The focus on people, stakeholders and internal processes by the learning and growth perspectives remains crucial (Spitzer, 2007). Notably, this system influences leadership approaches in a more transformational and democratic manner. This is why the Futura industries’ management has remained people-focused.
Evaluation
Different organizations face unique challenges. These might occur due to globalization and technological development. Generally, there is a high level of competition and increased employee demand. Ambitious standards for benchmarking and performance review have forced organizations to adopt transformative and contemporary approaches. All these initiatives are aimed at increasing the level of organizational performance (Kaplan & Norton, 2004). Futura’s approach seems to be distinct. Nonetheless, it is also considerate of vital factors of management. The company has adopted an approach that has a great business sense. Therefore, a comprehensive implementation of the design would lead the company to success.
Futura’s approach touches on all components of organizational performance. These include leadership, active employee participation, monitoring, evaluation and continuous learning. In addition, financial performance review measures provide effective mechanisms for evaluation of organizational growth. All these elements are crucial for the practice of strategic management. There is focus on quality improvement of management and leadership processes (Gumbus & Johnson, 2003). Collective bargain and engagement of stakeholders remain fundamental for the adoption of transformative measures. Futura industries have integrated all these elements in their management systems.
References
Gumbus, A. & Johnson, S.D. (2003). The balanced scorecard at Futura Industries. Strategic Finance. 85(1). 36-42.
Kaplan, R.S. & Norton, D.P. (2004). Measuring the Strategic Readiness of Intangible Assets. Web.
Niven, P. (N.D.). Learning and Growth Perspective. EPM Review. Web.
Spitzer, D. R. (2007). Transforming performance measurement: Rethinking the way we measure and drive organizational success. New York, NY: American Management Association.