Mastering Internal Assessment: Leveraging Organizational Culture and Balanced Scorecard Approach Discussion Paper

Introduction

Internal assessment is a fundamental step in strategic planning for organizations. It involves evaluating an organization’s strengths and weaknesses across various functional areas, such as finance, marketing, information technology, and customer service. However, to conduct an effective internal assessment, it is essential to consider the influence of organizational culture. Organizational culture refers to the shared values, beliefs, and norms that shape an organization’s behavior and decision-making processes. This essay explores the significance of organizational culture in internal assessment and discusses the choice of a development method to ensure an unbiased evaluation of functional areas within an organization.

The Role of Organizational Culture in Internal Assessment

Organizational culture plays a pivotal role in internal assessment. It can either facilitate or hinder the process of evaluating an organization’s functional areas objectively. The 15 aspects of organizational culture defined on page 102 in Chapter 4 of the text provide a framework for understanding how culture impacts assessment (Cameron & Quinn, 2011). For the purpose of this discussion, three dimensions of organizational culture will be explored: adaptability, teamwork, and innovation.

Adaptability: Adaptability is crucial in today’s dynamic business environment. Organizations that embrace change and are open to new ideas and strategies tend to perform better. When adaptability is present at Level 5, it fosters a culture of continuous improvement. Employees are more likely to embrace change, and the organization can identify weaknesses and opportunities more effectively. However, at Level 1, where adaptability is lacking, resistance to change may hinder the assessment process. Employees may be resistant to acknowledging weaknesses, and the organization may miss critical improvement opportunities.

Teamwork: Effective teamwork is another dimension of organizational culture that impacts internal assessment. When teamwork is strong (Level 5), employees collaborate, share ideas, and work together to address weaknesses and seize opportunities. This enhances the accuracy of the assessment. Conversely, at Level 1, where teamwork is weak, employees may withhold information or compete rather than cooperate. This can lead to a biased assessment, as weaknesses may be concealed, and opportunities overlooked.

Innovation: Innovation is essential for organizations to stay competitive. A culture of innovation (Level 5) encourages employees to think creatively and identify innovative solutions to weaknesses and opportunities. In contrast, a culture that stifles innovation (Level 1) can impede the assessment process. When employees are not encouraged to innovate, weaknesses may persist, and opportunities may go unnoticed.

Mitigating Bias in Internal Assessment

To ensure that the identified aspects of organizational culture do not bias the internal assessment, it is crucial to implement strategies that promote objectivity and transparency. One effective approach is to establish clear assessment criteria and guidelines. By providing a structured framework for evaluation, organizations can minimize the impact of cultural factors on the assessment process.

Moreover, involving external consultants or experts can help provide an unbiased perspective (Kaplan & Norton, 2001). These individuals can offer fresh insights and opinions, free from the influence of the organization’s culture. Additionally, anonymous surveys and feedback mechanisms can encourage employees to provide honest assessments without fear of reprisal, particularly in cultures where openness and candid feedback are not the norm.

Choice of Development Method

The choice of a development method for internal assessment is critical. In this context, the Balanced Scorecard (BSC) approach is selected and defended (Kaplan & Norton, 2001).

The Balanced Scorecard is a comprehensive framework that considers various aspects of an organization’s performance, including financial, customer, internal processes, and learning and growth perspectives. It aligns well with the need for an unbiased assessment of functional areas. The BSC approach provides a structured way to measure performance across these areas, ensuring that cultural biases are minimized. By using key performance indicators (KPIs) and metrics that are independent of culture, the BSC approach enables organizations to focus on objective data rather than subjective judgments.

Moreover, the BSC approach encourages a holistic view of an organization’s strengths and weaknesses. It promotes a balanced assessment that considers financial and non-financial factors, making it less susceptible to cultural bias. This method also allows organizations to set strategic objectives and measure progress over time, facilitating continuous improvement.

Conclusion

Organizational culture significantly influences the internal assessment process within organizations. It can either enhance or hinder the objectivity of evaluating strengths and weaknesses in functional areas. To mitigate the impact of culture, organizations should adopt development methods that emphasize clear criteria, involve external experts, and encourage anonymous feedback. The Balanced Scorecard approach, with its focus on objective metrics and a holistic view of performance, is a suitable choice for conducting an unbiased internal assessment. By recognizing the importance of organizational culture and selecting appropriate development methods, organizations can better position themselves for strategic planning and improvement.

References

Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and changing organizational culture: Based on the competing values framework. John Wiley & Sons.

Kaplan, R. S., & Norton, D. P. (2001). The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment. Harvard Business School Press.