South Valley University

Faculty of Tourism and Hotels

Tourism Studies Department

Balanced
Scorecard
Under Supervision Of
Dr/ Khaled Soliman
Professor of Tourism Studies
Faculty of Tourism and Hotels
South Valley University
Submitted by

Noran Ibrahim ouda

sara Khaled

Silvia Kamal Wadee

Hanan Nady

Mohamed Taher
List Of Contents
Contents Page

The concept of balanced scorecard 1

Importance Of Balanced scorecard 1

Components of the Balanced Scorecard 3

Advantages Of The Balanced Scorecard

5

References 8
The concept of balanced
scorecard:-

(BSC) is a tool that allows managers to better follow

and understand not only how their staff is performing,
but also how that performance relates to the overall
growth of the organization. The information gained
from balanced scorecard provides deeper insight
into how the current actions within the company
affect the long term goals of strategic management,
allowing managers to make the changes needed to
ensure that the organization’s goals are met .
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 Importance Of Balanced
scorecard:-
1. Better Strategic Planning

2. Improved Strategy Communication & Execution

3. Better Alignment of Projects and Initiatives

4. Better Management Information

5. Improved Performance Reporting

6. Better Organisational Alignment

7. Better Process Alignment

Importance Of Balanced
scorecard:-
1. Better Strategic Planning
 The Balanced Scorecard provides a powerful
framework for building and communicating
strategy. The business model is visualised in
a Strategy Map which helps managers to think
about cause-and-effect relationships between the
different strategic objectives. The process of
creating a Strategy Map ensures that consensus is
reached over a set of interrelated strategic
objectives. It means that performance outcomes
as well as key enablers or drivers of future
performance are identified to create a complete
picture of the strategy.
Importance Of Balanced
scorecard:-
2. Improved Strategy Communication &
Execution
 Having a one-page picture of the strategy allows
companies to easily communicate strategy
internally and externally. We have known for a
long time that a picture is worth a thousand words.
This 'plan on a page
 facilitates the understanding of the strategy and
helps to engage staff and external stakeholders in
the delivery and review of the strategy.
 The thing to remember is that it is difficult for
people to help execute a strategy which they
don’t fully understand.
Importance Of Balanced
scorecard:-
3. Better Alignment of Projects and
Initiatives
 The Balanced Scorecard help organisations map
their projects and initiatives to the different
strategic objectives, which in turn ensures that the
projects and initiatives are tightly focused on
delivering the most strategic objectives.
Importance Of Balanced
scorecard:-
4. Better Management Information
 The Balanced Scorecard approach helps
organisations design key performance indicators
for their various strategic objectives. This ensures
that companies are measuring what actually
matters. Research shows that companies with a
BSC approach tend to report higher quality
management information and better decision-
making.
Importance Of Balanced
scorecard:-
5. Improved Performance Reporting
 The Balanced Scorecard can be used to guide the
design of performance reports and dashboards.
This ensures that the management reporting
focuses on the most important strategic issues and
helps companies monitor the execution of their
plan.
Importance Of Balanced
scorecard:-
6. Better Organisational Alignment
 The Balanced Scorecard enables companies to
better align their organisational structure with the
strategic objectives. In order to execute a plan
well, organisations need to ensure that all business
units and support functions are working towards
the same goals. Cascading the Balanced
Scorecard into those units will help to achieve that
and link strategy to operations.
Importance Of Balanced
scorecard:-
7. Better Process Alignment
 Well implemented Balanced Scorecards also help
to align organisational processes such as
budgeting, risk management and analytics with
the strategic priorities. This will help to create a
truly strategy focused organisation.
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Four Processes of Balanced
Scorecard
 Translating the Vision.

 Communication and Linking

 Planning

 Learning and Feedback

Components of the Balanced
Scorecard:-
The balanced scorecard includes four processes that
integrate the goals of strategic management with the
actions of the employees, rather than strictly focusing
on financial measures to gauge performance.
These processes, when incorporated with current
strategic management practices, allow managers to
provide the guidance and information needed by their
employees to better meet long-term goals.
These balanced scorecard processes promote better
results from the strategic management goals, driving
the success of the organization.
Translating the Vision
Translating the vision brings the goals and strategies
of the organization to the employees in a manner
that helps them better understand how their actions
affect the overall success of the company. This is
done by formulating objectives at the employee
level that will help them understand what is needed
for long-term success.
Communication and Linking

Strategic planning requires communication, and this

balanced scorecard process helps managers tie
their strategic goals in with individual and
departmental objectives. This integration ensures
that all employees within an organization have a
better understanding of strategic goals, and how
their abilities to meet the objectives line up with
them.
Planning
Business planning allows managers to align the
financial initiatives of the company with employee
level goals. The balanced scorecard goals help
managers make better allocation and prioritizing
decisions, enabling them to see exactly which
initiatives are necessary for meeting organizational
goals.
Learning and Feedback

The fourth aspect of balanced scorecard 

incorporates reviews and feedback from
customers, internal processes, and growth. These
perspectives assist managers in the performance
evaluation of current strategies, helping them
understand which objectives require modification.
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Advantages Of The Balanced
Scorecard
1. It gives structure to your strategy.
Unlike financial or HR management, organizations
frequently talk about organizational performance
(and strategy) in a variety of ways. Thus, there are
many different approaches to strategic
management. The Balanced Scorecard is a logical,
structured way to help the leaders of your
organization ensure that all areas of the organization
are covered in an easy-to-understand way. It helps
keep your goals at the center, uses specific
measurements to track progress, and follows
initiatives to track actions—a structure those who use
the BSC know and love.
Advantages Of The Balanced
Scorecard
2. It makes it easy to communicate your
strategy.
A strategy map is designed to clearly communicate
a strategic plan. It is a clean, simple visual aid used
to align every department or division for the purpose
of achieving high-level business goals. When
implemented correctly, it:
 Gives employees clear goals to keep in mind
while working on measures.
 Helps employees identify key goals.
 Allows employees to better understand the
strategic elements that need work.
 Enables employees to see how objectives affect
one another.
Advantages Of The Balanced
Scorecard
3. It aligns your departments and divisions.
When implemented correctly, all divisions and
departments should align with a common strategy,
and the Balanced Scorecard facilitates this process.
With the BSC structure, you can link your critical
objectives to the objectives of a parent company or
enterprise. Additionally you can see how your
measures may roll up to the enterprise-level
measures, how projects link to enterprise-level
projects, and more. The BSC also provides the
structure needed when large projects are shared
across multiple divisions.
Advantages Of The Balanced
Scorecard
4. It helps your employees see how their
individual goals link to the organizational
strategy.
Using The Strategy-Focused Organization framework,
the BSC allows individuals to align their goals across
the organization. For example, an employee setting
regular performance goals for an annual personal
review can link their goals to those of their division or
department (and from the division up through the
entire organization). Thus, the BSC allows all of your
employees to connect what they’re doing to the
betterment of the team and the company as a
whole.
Advantages Of The Balanced
Scorecard
5. It keeps your strategy front and center of
your reporting process.
A lot of organizations build strategic plans and put them on
a shelf, never to be seen again. The creation of the BSC is
predicated on reviewing your strategy on a regular basis—
and you can only do this if your strategy is organized.
Regular strategy review meetings on a monthly or
quarterly basis, combined with an annual strategy refresh,
will ensure you reference your strategy regularly and keep
it at the center of your management reporting process.
Reviewing your strategy will bring it to life and make it part
of the way you manage your organization. Furthermore,
you will know where you are at all times in achieving your
goals.
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References

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