Applying Balanced Score Card – General Motors

The BSC ( Balanced Score Card ), which a rather common performance measurement pointer, is used by General Motors in measuring its non-financial, as well as financial, situation. The BSC has four components each having several measures (Daft, 2011; Haberberg & Rieple, 2007). This essay recommends varied performance measures for each of the components, or categories.

For the financial perspective category of its Balanced Score Card, General Motors should adopt sales growth and market share as the principal performance measures. These measures will help determine whether the business remains on course to realize increased profits, which is its core aim as a commercial enterprise (Weygandt, Kieso & Kimmel, 2010). Regarding the customer perspective category, the General Motors should adopt the time needed to suffice clients’ needs and the quality of own products as the key performance measures (Haberberg & Rieple, 2007). Customers who feel that given enterprises serve their needs promptly and offer them quality products are likely to give the enterprises repeat business, hence growing their profitability levels.

Regarding the operational perspective category, General Motors should adopt efficacy of own business processes and staff competencies as its key performance measures. Organisations have operational efficiency when they are defined by efficient processes manned by competent personnel (Weygandt, Kieso & Kimmel, 2010). Lastly, regarding the learning perspective category, General Motors should adopt the launching of new products and venturing into additional markets as its principal performance measures. These measures will help the company determine whether or not it is growing in terms of innovativeness (Haberberg & Rieple, 2007)

The usage of the Balanced Score Card can heighten the EVA (Economic Value Added) added to General Motors, especially with respect to the financial perspective category (Haberberg & Rieple, 2007). Just like the sales growth and market share performance measures, the EVA measure is effective in determining the company’s financial performance. EVA determines the variation between General Motor’s return on capital and the capital’s cost.


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