A balanced scorecard is an instrument used by companies and organization to communicate what a company wishes to accomplish, align every employee to the daily activities of a company, make priorities in products and services, and measure progress as per the company's strategic objectives (“What is the Balanced Scorecard?” n.d.). The implementation of the balanced scorecard involves four perspectives pertinent to any business. The goal of the balanced scorecard is to align the different parts of the business, both internal and external, to the operational elements of the business, thus mapping out the relationship of each business sector.
The first perspective is the financial aspect of a business. This perspective ensures that the cost of operations in the company is sustainable, and the company realizes a substantial growth in sales. Notably, the financial perspective involves looking at the viability of cash flows and recommends any strategies that may reduce administrative and operational cost. The perspective means that as the company faces global expansion, the financial stability of the company must be viable and sustainable. The second perspective is the customer aspect, an external factor of the business, delving into pertinent issues that ensure a satisfactory customer experience. The customer perspective ensures that the company retains the existing customers as well as acquire new market share as the company expands. To the company, this perspective is essential in the globalization of services as the company must target new markets (Hu, Leopold-Wildburger, & Strohhecker, 2017). Ideally, these new ventures are not guaranteed, and therefore, incentives and innovation in customer experience are pertinent in the early stages of expansion into foreign markets.
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The third is the internal business perspective, a process that looks at how the company affairs are handled inhouse. It involves the process of tendering suppliers in line with the expected material turnover. Most importantly, as a company looks to expand into new markets, it has to incorporate the issues of diversity within the company. Most companies choose to use expatriates to govern the business abroad, but these expatriates must work with a strong team of employees from other parts of the world and especially natives. The last perspective is the learning and growth perspective, an aspect that involves the employees' input and management (Afonso & Rosário, 2015). A company ought to identify if it has enough talent amongst the employees to foster growth through innovation. Ideally, the perspective involves human resource management, an aspect that is pertinent to the development of the company's innovation.
Another critical and all-encompassing management process to look at before considering is the SWOT analysis of the business. The laying down of strengths, weaknesses, opportunities, and threats of a company helps to determine if the expansion is valuable to the company. Additionally, a structuralist approach to expansion is critical because it offers apparent advantages when designing the existing company strategies to fit the needs of a new market. A business must learn the difference in culture and traditions of their different clients in the new markets and customize the experience they invest in these abroad markets (Agyeman, Bonn & Osei, 2017). These two strategies are essential as well as the use of more than one approach because abroad markets are volatile and highly unpredictable. The company lacks data that can help predict the needs of the customer and therefore integrating several approaches in expansion provides a better cushioning for any failures or challenges that a company faces. Global expansion is a process that takes time, and financial investment, and therefore, a company must approach globalization of its services with more than one strategy. Other than providing cushioning, several strategies foster competitive innovation of ideas that will ensure perfection within the company. The talented teams tasked to facilitate each strategy works to meet the expectations of the company.
References
(n.d.). What is the Balanced Scorecard? Retrieved from https://www.balancedscorecard.org/BSC-Basics/About-the-Balanced-Scorecard
Hu, B., Leopold-Wildburger, U., & Strohhecker, J. (2017). Strategy map concepts in a balanced scorecard cockpit improve performance. European Journal of Operational Research , 258 (2), 664-676.
Afonso, H., & do Rosário Cabrita, M. (2015). Developing a lean supply chain performance framework in a SME: a perspective based on the balanced scorecard. Procedia Engineering , 131 , 270-279.
Agyeman, B., Bonn, J., & Osei, C. (2017). Using Balanced Scorecard for Managing Performance in Selected Ghanaian Banks.
