how can the balance scorecard be used tocreate innovation and manage intangible assets in order to gain a competitive advantage
how can the balance scorecard be used tocreate innovation and manage intangible assets in order to gain a competitive advantage in respects to the 4 perspectives on which the balance scorecard is based
In the first major indicator of the balanced scorecard is the Financial Perspective. This section is what you will use to monitor how your finances within the company are affected by the innovations your company has been using. In the first sub-indicator it shows "Finances Saved With Innovations." This is basically for you to measure how much money you are saving, by using innovations. This is basically for you to measure how much money you are saving, by using innovations. For instance, in the example shown in the scorecard, it shows that 30% of savings is due to the innovations you are using. This can seem like a large amount, until you glance down, and see in the second sub-indicator, "Finances Spent On New Innovations." It shows that approximately 60% of finances in the hypothetical company are being spent on innovations. If your situation is anything like that shown in this example, it might be a good idea to relax your spending on new innovations, and allow some of the ones you already have in the works to develop further.
In the second major indicator of this balanced scorecard is the Customer Perspective. This section is used to monitor how customers are reacting to your company's use of its current innovations. In the first sub-indicator, it shows "Customer Satisfaction." You can measure how satisfied your customers and clients are more easily than you think, by using friendly surveys and more in-depth customer service techniques. In the second sub-indicator, showing "Percentage of Innovations For Customer Use," you can measure how many innovations your company has, or uses that are solely customer oriented, or directly affect the sales process, or customer's experience. By directly monitoring your customer's experience with innovations, you can decide how to cut back, or which innovations must be improved to make a more positive experience for customers.
In the third major indicator of the scorecard, is the Internal Process Perspective. This section is used to measure and monitor what internal processes must be improved upon, or developed more intuitively to retain and satisfy staff, customers, and shareholders. In the first of the sub-indicators is "[Hours] Saved With Innovations," which is used to measure whether or not the innovations you are introducing into your company are actually saving time and energy. You can measure in this sub-indicator what the percentage of hours per employee per department are saved by using an innovative feature(s). In the second sub-indicator is "Satisfaction With Innovations", which is used to measure how satisfied management, and general staff are with the innovations you are using within your organization. In the third sub-indicator, is "Problems Solved With Innovative Processes", which is fairly self-explanatory, and is used to measure just what it says; the amount of issues resolved internally through the use of innovative processes. In the fourth sub-indicator is "Hours Spent Developing New Innovations" which is also fairly self-explanatory and is used to measure how many hours your staff are spending trying to learn the new innovative processes and features in your company. The idea is to find a maximum amount of time per each employee, and encourage participation in learning these new techniques.
In the fourth major indicator of the balanced scorecard is the Education and Growth Perspective. This section contains techniques for how you can measure how your company is changing and evolving through the use of innovative features. In the first sub-indicator is "Time [Hours] Reserved For Innovations Training", where you can measure how many hours are being set aside as a part of staff's daily or weekly routine, for specifically training just to learn new innovations. In the example shown, five hours is the maximum and preferred time to be used to learn the new innovations, however, as shown, the average employee is only spending three hours. Try to think what you would do in this situation, to encourage more time to be taken for the learning process. The second sub-indicator is also fairly self-explanatory; "Courses Taken For Innovation Training." This is used to measure out of the maximum courses for training that your company offers for learning innovative processes, how many on average, are actually being taken by staff. You want employees to be as educated as possible about these new techniques, so try to modify the amount, if it is less than satisfactory, by encouraging participation in courses, or giving incentives to employees and staff.
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