MANAGEMENT ACCOUNTING

GROUP ASSIGNMEMT (GROUP 2)

MSC. ACCOUNTING AND FINANCE
SUNYANI STUDY CENYER

ATTENDANCE

NAME STUDENT ID INDEX NUMBER

1 OBENG PG4655520
AMANKWAA
20762563
ERNEST
2 EDWARD ABANAH 20721857 PG4618620

3 BIO NATHANIEL 20762499 PG4637420

4

BROW SIMON 20722776 PG4639620

5 KODWO BOAKYE PG464322-

EGYIN
20751813

a) According Kaplan and Norton, what characteristics/features make the balanced

scorecard so special for its worldwide adoption?
 The following characteristics makes the balanced scorecard special
1. It focuses on the strategic agenda of organisations
2. It brings out a focused set of measurements to monitor performance against objectives
3. It is a mix of financial and non-financial data items (originally divided into four
perspectives – Financial, Customer, Internal Process, and Learning & Growth)
4. It is a portfolio of initiatives designed to impact performance of set objectives

b) Outline the five-pronged strategy crafted by Rockwater in developing the scorecard

The five-pronged strategy crafted by Rockwater are as follows

1. services that surpass customers’ expectations and needs
2. high levels of customer satisfaction
3. continuous improvement of safety, equipment reliability, responsiveness, and cost
effectiveness
4. high-quality employees
5. realization of shareholder expectations

c). Using the balanced scorecard (tabular format), translate Rockwater’s strategy into
tangible goals and actions.

VISION : As our customers’ preferred provider, we shall be the industry leader.

GOALS ACTIONS
INNOVATION INTERNAL CUSTOMER FINANCIAL
1. services that Continuous Shape Customer Value for Return on
surpass improvement Requirement Money –Tier I capital
customers’ Customers
expectations
and needs

2. high levels of Product and Tender Competitive Cash Flow

customer service Effectiveness Price – Tierr II
satisfaction innovation

3. continuous Empowered Quality Service Hassle-Free Project

improvement work force Relationship profitability
of safety,
equipment
reliability,
 responsiveness
, and cost
effectiveness

4. high-quality Safety/Loss High- Reliability of

employees Control Performance Performance
Professionals
Innovation
5. realization of Superior Project
shareholder Management
expectations

d). Outline the importance of the balance score card to Rockwater’s.

i). The balanced scorecard has helped Rockwater’s management to emphasize a process
view of operations.
ii). It also helped the organisation to motivate its employees, which eventually led to
achievement of set objectives
iii). The score card again helped the management to incorporate client feedback into its
operations.
iv). The score card developed a consensus on the necessity of creating partnerships with key
customers, the importance of order-of-magnitude reductions in safety-related incidents, and the
need for improved management at every phase of multiyear projects.
v). it serves as a tool in helping the company ultimately achieve its mission.

e). What factors aided Rockwater in its smooth switch to the balanced Score card?

Below are the factors that aided Rocwater’s smooth switch to the balance Score card:
i. The ability of the management team to develop a vision (As our customers’ preferred
provider, we shall be the industry leader)
ii. The company’s ability to develop five strategic elements to implement the vision above
iii. The ability of the management to translate the company’s strategic objectives into a four-
set coherent performance measures.
iv. The company’s ability to link its tangible goals and actions to Financial perspective,
Customer perspective, Internal Business perspective, and Innovation and Learning
perspective as the four performance indicators.

f) How beneficial can the scorecard be to KNUST Institute of Distance Learning

(IDL)?

KNUST -IDL can benefit from balance Score Card in the following ways:

i) Better Strategic Planning

The Balanced Scorecard can provide KNUST with a powerful framework for building and
communicating strategy. The business model is visualised in a Strategy Map which can help
KNST 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.

ii) Better Alignment of Projects and Initiatives

The Balanced Scorecard can help KNUST map its 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.

iii) Better Management Information

The Balanced Scorecard approach can help KNST design key performance indicators for its
various strategic objectives. This ensures that KNUST is measuring what actually matters and
this can lead to a case of reporting higher quality management information and better decision-
making.

iv) Better Organisational Alignment

The Balanced Scorecard can enable KNUST to better align its organisational structure with the
strategic objectives. In order to execute a plan well, KNSUT need to ensure that all
departments/units and support functions are working towards the same goals. Translating the
Balanced Scorecard into those departments/units will help to achieve that and link strategy to
operations.

v) Better Process Alignment

Well implemented Balanced Scorecards also can help to align KNST (IDL)’s processes such as
budgeting, risk management and analytics with their strategic priorities. This will help to create a
truly focused and strategic institution.