(Balance Scorecard) Accounting Assignment Example | Topics and Well Written Essays - 2250 words

(Balance Scorecard) Accounting - Assignment Example According to balanced score card, the performance of a firm is measured on the basis of four perspectives, which are financial, customer, internal business process or value chain and learning and growth. The name balanced scorecard reflects balance between long term and short term objectives, financial and non financial measures, leading and lagging indicators, and between internal and external perspectives. Balanced score card is more than a system of measurement. It should be transformed into a strategic management system (Brigham and Louston, 2009, p.112). The new measurement system is used to align and communicate with the new strategies of firm and to properly manage them. For this, the suggested steps could be: classification and translation of strategy and vision, communicating and linking the strategic measures and objectives, planning, setting targets and aligning strategic initiatives and enhancing the learning and strategic feedback (Chandra, 2011, p.95). There are a community group of volunteers who are taking over some greenhouses at a nursery garden with an objective to grow plants as a way of providing training to the young people with learning difficulties. The principal sources of income to this community group of volunteers will be the sale of food and plants which are grown at the site, individual funding from each of the learning disabled, grant funding and charitable donations. It is advisable to them to use an appropriate balanced scorecard for the work. The use of balanced scorecard will provide the nursery volunteers with lot of benefits and the balanced scorecard should be produced with an appropriate number of financial and non-financial measures. In addition, the grant funder can apply some key performance indicator to the contract to reassure themselves that the service is being run appropriately by the volunteers. It is important to build a balanced scorecard which communicates the strategy of firm for certain