Balanced Scorecard: Learning and Growth Perspective

Introduction to the Learning and Growth Perspective

Learning and growth is the fourth category of the balanced scorecard, forming the foundation upon which all other strategic perspectives are built. In this perspective, organizations establish employee capabilities, skills, technology infrastructure, and a corporate environment capable of supporting broader strategy. Several objectives have been identified for the university-affiliated medical rehabilitation center (CRCM) in an effort to improve its learning and growth outcomes. These include: (i) recruit, orient, manage, develop, and retain personnel; (ii) utilize technology to advance the organization's information systems; and (iii) promote, train, and practice the organization's culture (Kaplan and Norton, 1992).

Learning and Growth Objectives and Strategy Map

The following strategy map summarizes each learning and growth objective alongside its corresponding measure, target, and recommended action.

Objective: Recruit, orient, manage, develop, and retain personnel
Measure: Turnover rates
Target: Attract the best employees in an effort to achieve sustainability
Action: Develop a motivated and satisfied workforce

Objective: Utilize technology to improve and advance the organization's information systems
Measure: Number of staff who successfully complete technology training
Target: Demonstrate organizational willingness to change through technology incorporation
Action: Employ available technologies across operations

Objective: Promote, train, and practice the organization's values
Measure: Number of personal growth programs offered by the organization
Target: Improve service delivery to consumers
Action: Strengthen organizational culture

Linking Learning and Growth to Financial and Customer Outcomes

Learning and growth is the basis of all other strategies. As a result, objectives from this perspective exert substantial influence on other scorecard categories and on the center's overall mission and vision. One key objective — recruiting, orienting, managing, developing, and retaining personnel — directly affects turnover rates. In relation to financial objectives, retaining high-quality employees improves organizational productivity, drives high performance, and increases revenues (Martello, Watson, and Fischer, 2008).

There is also a direct link between customer satisfaction and financial results. When customers feel they have received excellent service, they are more likely to return to the center, which is critical to sustaining revenues. Employees who work in alignment with the organization's values are positioned to deliver that level of service consistently. By retaining only the most capable employees, the organization can encourage repeat visits, generate revenues, and maintain its financial position (Martello, Watson, and Fischer, 2008).

Conclusion

Improving the learning and growth of the organization will have a meaningful influence on its overall mission and vision, as well as on all other scorecard perspectives. Training instills important knowledge in employees, who are then able to deliver services consistent with the organization's values, encouraging customers to return. This raises revenues and supports long-term sustainability (Martello, Watson, and Fischer, 2008). Meanwhile, utilizing technology and retaining the best employees contributes directly to improved patient outcomes. Taken together, it is clear that learning and growth serves as the strategic foundation for every other organizational objective (Kaplan and Norton, 1992).

References

Kaplan, R., & Norton, D. (1992). The balanced scorecard: Measures that drive performance. Harvard Business Review, 70(1), 71–79.

Martello, M., Watson, G. J., & Fischer, J. M. (2008). Implementing a balanced scorecard in a not-for-profit organization. Journal of Business & Economics Research, 6(9), 67–80.