1. IntroductionDuring the late 1980’s and early 1990’s criticism of tradition management accounting practices were widely publicized and new approaches were advocated which are more in line with today’s dynamic business environement.in particular strategic management accounting has identified as a way forward.(Drurry.C)For the purpose of this study to update our knowledge on the latest management accounting trends, the strategic management accounting technique Balanced Scorecard (BSC) is selected. This report consists of an in-depth analysis regarding these two techniques where it highlights its evolution, usefulness, its practical applications in different industries and its potential developments.The Balance scorecard (BSC) is a more recent contribution to strategic management accounting that emphasizes the role of management accounting in formulating and supporting the overall competitive strategy, both financial and non-financial measures of an organization. 2. Analysis 2.1. Balanced Scorecard A common and critical deficiency in management practice is to focus on short term period for quick fixes rather than making those short term actions an extension of the company’s long term strategy, which later leads the organizations in the incorrect decision. To deal with the short term and long term right away, leading companies are turning to a management tool referred as the Balanced Scorecard to translate corporate vision into measurable objectives and performance measurement for four perspectives.BSC method monitors the strategy used by the organization in various view points and settles the goal conflicts. Chavan (2009) states that both financial and non-financial measures are determined through vision and strategy of the company which facilitates them to move in to the correct path with accurate decisions. Robert Kaplan and David Norton from Harvard Business School first presented the “Balanced Score Card” in an article “The Balanced Scorecard – Measures that Drive Performance”, Harvard Business Review, January/February 1992.It all started out with the studies they carried out in 1990 to observe and address the measures of the use of conventional financial indicators to measure performance in organizations. It was discovered that financial measures cause short term behavior which made organizations not ready to face future competition, with this research BSC was created. They used thee the diagram figure 1 to illustrate how the balance scorecard translated strategy into tangible objectives and linked performance measures for the 4 following perspectives:1. Financial perspectives (How do we look to stakeholders?) Essential indexes recommended: market participation, consumer retention, and consumer satisfaction and consumer profitability.2. Customer perspectives (How do customers see us?) Innovations; Operations; Service after sale.3. Internal Business perspectives (What must we excel at?) Employee satisfaction; Employee retention; Profitability per employee.4. Learning and growth Perspective (Can we continue to improve and create value?) Return on Equity or Economic Value Added – EVA. Return: on sales, of assets. FIGURE 1.1 Source; corehr.wordpress.comThe BSC is considered as one of the strategic management technique for communicating and evaluating the achievement of the mission and strategy of the organization. According to the figure 1.1 we could identify that the strategy is implemented by specifying its major objectives for each of the four perspectives mentioned and translating them into specific performance measures, target and initiatives. However, BSC was not the initial approach which considered measuring performance using financial and non-financial methods. One of the very first approach which was employed to measure the performance was adopted by the French, named Tableau the Board, which is a Dashboard. This was initially used to measure the performance of Machines, hence they used many operational as well as financial Indicators (Mackay, 2004).2.2 Comparing Balanced Scorecard with a similar technique EFQM Business excellence Model (BEM) and Malcolm Baldridge are some of the other approaches which have similar features. BEM monitors the behavior of the business under few categories.The Balanced Scorecard and the European Foundation for Quality Management Business Excellence Model are both 02 techniques that measures an organization’s performance for further improvement by generally identifying current shortfalls in performance in areas of particular concern to the management of the organization. Both have been widely used in modern times and benefit from the support of intermediaries such as current and potential users, consultants, and software suppliers. The purpose of our report is to compare the two techniques. Although there are strong similarities, the two approaches come from very different backgrounds and are made and using different processes. It can be also seen how the 02 approaches have a fundamentally different theoretical and methodical basis and in turn, how this suggests a contingency, which should inform decisions about the choice of either approach. So lets individually look into both the methods in general.Balanced ScorecardThe Balanced Scorecard’s a system that conveys an organisation’s strategy as a set of measurable goals from the perspectives of internal, external stakeholders, and the organisation. If these goals, measures, and targets are well chosen, the balanced scorecard will help managers focus on the actions required to achieve their objectives which enables the organisation to achieve its long term strategic goals.Situations of application • Focusing management agenda on achieving strategic goals• Supporting two way communication of strategic priorities and organisational performance• The prioritisation of investment and activity behind strategic goals• The alignment of goals towards a common strategy across an organisation.• Supporting continuous learning about strategic “cause and effect” relationships affecting anOrganisation.Outputs • A clearly articulated statement of vision and strategy.• A set of measurable strategic objectives spread over four “perspectives”: each measure with agreed targets.• A set of priority “initiatives” linked to the strategic objectives and measures.Process of work The Balanced Scorecard builds on key concepts of management activity concerning:Causality – the belief that managers can identify things to do that will lead to key outcomes being achieved.Learning – the belief that given appropriate feedback, managers will identify ways to improvePerformance.Team Working – the belief that most organisations rely on management activity performed byTeams as well as individuals.Communication – the belief that clear communication of goals, priorities and expectations areNecessary to achieve high levels of performance within an organisation.Although many variations exist, most Balanced Scorecards are built on a core idea thatmanager’s need information on a reduced set of measures selected across four distinct”Perspectives” of performance.Measurement information is usually collected at least quarterly, circulated in the form of paperor electronic reports, and these reports are used to inform regular meetings of the managementTeam.Generally Balanced Scorecard information is not directly useful for cross industry comparisonsOr other Benchmarking activities.Best fit instances Forward looking workshop baseddesign process involvingmanagement team, building on existing management plans, but looking for a “step change” in Performance. Creation of a set of strategic objectives that are “Unique” to the organisation.Issues The major challenges in BalancedScorecard design are the selection of measures – an activity that is often undertaken using specialist external support and the introduction of new ways of working that actually make use of the information generated by the Balanced Scorecard usuallyattempted as an “in- house” Exercise.Advanced users extend the Balanced Scorecard within an organization through “cascading” the creation of a pyramid of linked smaller Balanced Scorecards that “feed into” the Balanced Scorecard for the wholeorganisation and themodification of related business processes (e.g. budgeting and planning) to include reference to the organisation’s Balanced Scorecard. Figure 2 How EFQM maps to Balance scorecardSource – Andersen et al. (2000) Andersen et al. (2000) observes that there are some benefits of BSC which makes it better than BEM. BSC constructs upon the concepts of BEM, the strategy is very clear, it takes a clear responsibility for the objectives and resources and most of all it displays a balanced image of the organization. Mackay (2004) differentiates BSC and Business Excellence model as shown in the below table I. 2.3 Advantages and Disadvantages of using Balance scorecard2.3.1 Advantages of Balance Scorecard 2.3.2. Disadvantages of balanced scorecardBalanced scorecard appraised business performance against a range of factors, traditionally business measure performance by financial results. Balance scorecard Centre on customers, business process and organizational capacity, enabling to improve future performance. Therefore balance scorecard has some disadvantages.1. Time and financial cost investment2. Stakeholder acceptance and usage3. Strategic direction and matric planning4. Data collection and analysis5. Lack of external focusThese are the disadvantages of balanced scorecard Balanced scorecard system require considerable investment. A short term solution must be taken long term.it must be managed and constantly managed with the time and financial resources of a company. All employees must purchase a balanced scorecard in order to remain productive. This can be more difficult. If the system does not work or those who do not know it, they will not know. Then they will not invest it. Residents who are modifiable can have problems obtaining a new system. An effective balanced calculation method is in line with your goals and breaks them into measurable rankings. If you do not plan and communicate with these stakeholders and your stakeholders. The system will not be able to deliver the desired results. If you add extra objects or substances to the mixture, it will be difficult to manage it. You will need to understand when data is analyzed. A balanced scorecard can provide you with useful information or area that can improve you. But you will have to identify these indicators and follow a suitable strategy. The result sheet can only get the information that supported by the results.3. Findings3.1 Practical Implication of Balance scorecard The balance scorecard is a strategic planning and management system that organizations use to,Communicate what they are trying to accomplish. Align the day to day work that everyone is doing strategic.7-S model is a strategic vision for groups, to include businesses, business units and terms. The 7Ss are structure, strategy, systems, skills, style, staff and shared values. The model is most often used as an organizational analysis tool to assess and monitor changes in the internal situation of an organization. In Search of Excellence, the 1982 best-selling book by McKinsey partners Tom Peters and Robert Waterman, introduced the mass business audience to the firm’s 7-S model. The model, also influenced by an earlier collaboration between McKinsey and management scholars Richard Pascale and Anthony Athos describes the seven factors critical for effective strategy;1. Strategy – The positioning and actions taken by an enterprise, in response to or anticipation of changes in the external environment, intended to achieve competitive advantage.2. Structure – The way in which tasks and people are specialized and divided, and authority is distributed; how activities and reporting relationships are grouped; the mechanisms by which activities in the organization are coordinated.3. Systems – The formal and informal procedures used to manage the organization, including management control systems, performance measurement and reward systems, planning, budgeting and resource allocation systems, and management information systems.4. Staff – The people, their backgrounds and competencies; how the organization recruits, selects, trains, socializes, manages the careers, and promotes employees.5. Skills – The distinctive competencies of the organization; what it does best along dimensions such as people, management practices, processes, systems, technology, and customer relationships.6. Style/culture – The leadership style of managers – how they spend their time, what they focus attention on, what questions they ask of employees, how they make decisions; also the organizational culture the dominant values and beliefs, the norms, the conscious and unconscious symbolic acts taken by leaders 7. Shared values – The core or fundamental set of values that are widely shared in the organization and serve as guiding principles of what is important; vision, mission, and values statements that provide a broad sense of purpose for all employees.After a search for the ”perfect” organizational structure, the authors, and others, concluded that structure alone could not solve the problem of how to coordinate resource allocation, incentives, and actions across large organizations. The 7-S model posits that organizations are successful when they achieve an integrated harmony among three”hard” ”S’s” of strategy, structure, and systems, and four ”soft” ”S’s” of skills, staff, style, and super-ordinate goals (now referred to as shared values). While not all the companiesPeters and Waterman praised for ”excellence” sustained their leadership performance the 7-S model continues to be used in practice and in business school teaching as a diagnostic and prescriptive framework for organizational alignment.Within the academic literature, economists and strategy scholars tend to focus on the more tangible and measurable hard ”S’s” of strategy, structure and systems through studies of the impact of mergers, alternative organizational forms, and incentive and reward systems.Scholars in other social sciences focus on the more intangible and difficult-to-measure softer ”S’s” of skills, staff, style, and shared values. We came to realize that the 7-S model and the BSC strategic alignment models share many features in common. They both articulate that effective strategy implementation requires a multi-dimensional approach. They both stress interconnectedness. For example, the diagram for the 7-S model looks like a spider-web, with each of the ”S’s” connecting with all the other six; the BSC strategy map illustrates cause-and-effect linkages across its four perspectives. Both models help managers align their organization for effective strategy execution4. Potential Future Developments4.1. Potential Future Developments of Balance ScorecardThe Balance Scorecard technique was developed by Kaplan and Norton (1992, 1996) to combine financial control measures with non-Financial control measures. It is used for implementation the Mission and Objectives of an organizations Business strategy, the purpose of the Balance Scorecard is to enable effective monitoring and Control of the business.The Field of Performance Measurement has involved rapidly in the last two years with the development of new measurement system such as Balance Scorecard. This development have come in response to the rapidly increasing Accounting problems that emerge when the measurement of business units performance is only based on traditional financial Accounting measures such as the return-on-investment and the earnings per share. In most business, units there are intangible assets that are not be recognized on the Balance sheet but may significantly contribute to the business units performance. Traditional Accounting methods focus only on financial performance, thus neglecting many non- financial aspects. These Traditional Financial measures direct attentions to short term performance and many give misleading signals for continuous improvement and innovation activities that are extremely important for today’s competitive environment.The Balance Scorecard methodology can be used also to characterize the company development potential, because its interpretation of company’s value is based on the mutual interaction of four perspectives changes.• Change in worker behavior.• Change of environment in the company.• Change of consumer behavior of the customers.• Change of company’s economy. Steps in development of a Balance Scorecard. The steps in the process developing a Balance Scorecard are to,• Identify the key outcomes critical to the success of the organization.• Identify the process that leads to these outcomes.• Develop key performance indicators for these processes.• Develop a mechanism for reporting these to the relevant managers and staff.• Enact improvement programs to ensure that performance improves.The Balance Scorecard concept is just few minutes to read, but actually, it is not easy to understand. One of the most important aspects is how to develop good Scorecard. Balance Scorecard is a performance management concept which might be very useful when the goal is to measure and control values associated with business performance. The concept is simple, but the main problem behind the Scorecard is that people don’t know how to develop it, where to start and what result should be expected. As long as this concept focuses on performance measurement, the most important are performance measurement indicators, e.g. metrics. So the goal of developing Scorecard is actually the goal of developing correct metrics. Once metrics were developed they should be grouped in to categories, which should cover all possible business situation and aspects.How to develop metrics and group them into Scorecard.First, the number of metrics in each category should be about 3-4 metrics. If you have just 1, them this category is not balanced. If you have more, then probably you might think about grouping metrics into sub category.Actually, any complex balance scorecard will contain sub categories. It is not an easy task to maintain large number of metrics, especially grouped in sub categories, so consider using some balance scorecard software for this purpose. Second, metrics should be descriptive. E.G. metrics should describe the way you or your employee could measure something. Third, all parameters of the metrics must be measurable, and you should know the rules of measurement. Perfect, if this rules are written in scorecard. Let given some sample metrics (this is how metric is represented in Balance Scorecard Designer) For instance, we deal with one of the HR metrics, hear is a data from Balance Scorecard Designer:1. Indicator name: Time to Fill2. Description: The period from job requisition approval to new hire start date3. Measure units: Weeks4. Min value: 0, Max value: 12Key aspects of developing Scorecard. • Make sure all indicators are measurable.• Control the number of indicators, create sub-categories if necessary.• Describe your indicator so that you and your employees will understand how to use it.What you will have once good scorecard is developed?You will have an easy to use performance measurement system, which will not only answer your questions about what is performance smoothly and what should be improved, but will help to control and increased efficiency of most business processes in your company.There are few ways in which the value generated by the Balance Scorecard approach can be further increased. As Cab bold and Lawry (2002) highlights. BSC is considered as a favorable communication tool Shulver et all. (2000, cited in Cab bold and Lawry, 2002). However the exact application of it has to be further investigated. The connection between the adoption of BSC in large organization and the problems occurred with respect to communication within the departments of these organizations have to be looked into. Also, one of the principals for evaluating BSC is the use of it in organizations due to its capability of displaying the increase in value after its selection. However, a better understanding of the advantages of this approach has to be gained by measuring the change in its capital value before and after adopting the approach.Further, Brown and McDonnell (1995) suggests that before constructing a BSC, the nature of the organization for which it is going to be used has to be clearly identified and also the elements of the scorecard has to be inspected and made up to date continuously in order to prevent it from being outdated. When considering the hotel sector, separate BSC’s suitable for separate departments in the hotel should be further recognized. 5. Conclusion Balance Scorecard is the Management accounting technique which was chose to conduct this study. It is tool which assist the managers of an organization to measure the performance of the organization in order to achieve its strategic objectives. Containing four perspectives of the organization that are financial, customer, internal and learning and growth perspectives provides an overall picture of the organization which ease managers to make decisions.When considering the application of BSC in the hotel industry, even though its managers use number of individual financial and non-financial measures, still they do not receive the required information. Therefore, this problem could be won over, by using the BSC method. Even though BSC is a successful tool, there are few further developments that could be done on it in the future.ReferencesAndersen, H.; Lawrie, G.; Savic, N.; (2004) “Effective quality management through third generation balanced scorecard;” International Journal of Productivity & Performance Management, Vol. 53 Issue 7, p634-645Argyris, C. (1991). “Teaching Smart People How to Learn”, Harvard Business Review, May–June, pp 99 – 109Barsky, N.P and Bremser W.G. (1999) “Performance Measurement, Budgeting and Strategic Implementation in the Multinational Enterprise”, Managerial Finance, Vol. 25, No. 2, pp. 3 – 16Chavan, M. (2009). The balanced scorecard: a new challenge. Journal of Management Development, 28(5), pp.393-406.EFQM. (2018). Home. online Available at: http://www.efqm.org Accessed 16 Jan. 2018.Kaplan, R. and Norton, D. (1992). “Putting the Balanced Scorecard to Work”, Harvard Business Review, Sept. – Oct.Kaplan, R. and Norton, D. 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