Financial Control Essay Example | Topics and Well Written Essays - 1750 words

Financial Control - Essay Example It is mainly a measurement framework that adjoins measures that are not financial to conventional financial methods to offer a balanced feature of organizational performance. However, there has been a disbelief of this system in implementing it in small-medium manufacturing enterprise (SME). The disbelief concludes that Balanced Scorecard requires an organization with an advanced strategic planning process to realize its whole benefits. In demystifying that idea, this paper digs into the feasibility of applying the Balanced Scorecard process in the small-medium manufacturing enterprises (SMEs), its prospective benefits, the principal management process and the application of costing systems in SMEs. Introduction Businesses always establish a strategic planning that has connection with the performance of the business. This means that for a business to develop there must be growth in the planning of strategies to realize a better management system. It is at this point that essential st rategic management tools must be applied to a business (Brown, 2007, p.5). One of the tools in management processes of strategic planning is the Balanced Scorecard. However, it is important to understand that large organizations often exude a series of challenges in the application of the Balanced Scoreboard. This is because of the extensive coordination, communication and regulations operations in the organizations. The complex nature of large organizations always entangles the institutions in complex organizational operations that make it hard for the Balanced Scorecard to produce effectiveness (Biazzo & Garengo, 2012, p.40). The Application of balanced Scorecard system in SMEs SMEs always have similar objectives, missions and concerns in their operations. Primarily, the strategic management tenets of these SMEs are numerous. However, the crucial ones include the direction where the organization is headed. This is important since it challenges the SME on the achievements of the fi rm after a stipulated period of time. The other is the manager’s ability to understand business models. It is important to have a manager who is circumspect on the application of business models to maximize profits without exploiting consumers. The final one is the agility of the SME to adapt to new strategic management planning tools in the improvement of the enterprise. Lastly, an SME should be flexible to integrate fresh knowledge and skills into its strategic planning process (Blokdijk, 2008, p.10). Perspectives By digging into these issues, one realizes that there is a common goal of identifying, pursuing and achieving strategic goals and objectives. This is the recipe for the success of the SMEs’ performance and fulfilling their stakeholders’ expectations. The realization of the strategic goals is achievable by using four perspectives of the Balanced Scorecard as a component of a strategic management framework in an SME. These perspectives help the SME in viewing the organization in a broader way to execute the collection of data, analysis and development of financial metrics in the SME (Blokdijk, 2008, p.11). The first perspective is the learning and growth perspective. This perspective entails the training of employees in an organization integrated with the corporate cultural attitudes of improving oneself. It is important for the employees to acquire knowledge through training and developing of their attitude since they are the holders of knowledge in the