The balance scorecard was developed by two men, Robert Kaplan, an accounting professor at Harvard University and David Norton, a consultant from Boston area. In 1990 Kaplan and Norton conducted a research study on various companies exploring new methods of performance measurement…
customer issues, internal business processes, employing activities and share holders concern. Kaplan and Norton labelled the new tool the balanced scorecard.
Many organizations have started using balanced scorecard in order to attain efficiency in their processes. Since it considers all the major components in an organization a total efficiency management is possible in an organization. The four components of balanced scorecard are properly managed in order to create a total efficiency.
Balanced scorecard is a strategic planning and management system, which is extensively, used in business and industry, government, and non profit organizations for doing the business activities to the vision and strategy of the organization. Balanced scorecard is using for improving the internal and external communications and monitoring the organizational performance against the strategic goals of the organization.
In earlier stage it was used for the measuring the simple performance of the organization to a full strategic planning and management. New card is focusing not only the performance measurement but also helping the managers what should be done and what should be measuring for attaining the organizational objectives in competitive basis. ...
overall business strategy into specific, quantifiable goals and to monitor the organization's performance in terms of achieving these goals." (Balanced Scorecard Methodology, 2005).
Competitive Advantage enables the company to operate in a more efficient manner and higher quality manner than the companies to compete with and which helping the company for getting higher more profit.
"A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices." (Strategy -competitive advantage).
Balance score card is focusing the strategy and its results and improving the organizational performance through measuring the measures in a competitive basis, Focusing on a basis of future performance and also which is used as prioritize projects and initiative basis. Kaplan and Norton described in the following manner,
"The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation." (Gnanapoo, 2008).
According to his perspective Balanced scorecard having the following areas,
Learning and growth perspective
International Business perspective
(What is balanced scorecard 2007).
The learning and growth perspective is related to the learning and development ...
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Balanced Scorecard Approach: A Critical Review (Name) (Tutor’s Name) (Date) Balanced Scorecard Approach: A Critical Review Introduction Balanced Scorecard is a strategic performance management tool, which is mainly used by managers to regulate strategy execution activities and subsequent monitoring processes.
The Balanced Scorecard was first developed in the early 1990s to solve organization and business measurement problems, although its use has evolved among companies into more important functionalities. Business and organizational operation environments have increasingly become complex, thus necessitating more complex applications rather than just measuring performance in this era of information.
BALANCED SCORECARD WEEK 6 Executive Summary Balanced Scorecard is an important tool developed to measure the level of performance mainly of the employees in an organization. Procter and Gamble (P&G) is a reputed FMCG company which operates its business worldwide.
A balanced scorecard is a performance measurement tool used in strategic management to discover and develop a variety of internal processes as well as assessing of the impacts of the external factors. In particular, the purpose of this technique is to measure and assist organizations in the implementation of their goals and strategies.
A number of management tools and techniques are used by the management to strategically manage and fulfil the organizational objectives. These are the performance prism, total quality management, value based management and the balanced score card method of which the balanced scorecard technique is the most popularly used management system used in order to improve the performance of the organization.
The organizations should adopt a definite framework which can be used to help them develop their vision and goals for the future in a tangible, measurable way. This framework should enable the organizations to identify and understand the systemic nature of their business, the key linkages and cause and effect relationship.
This objective cannot be achieved unless the company sets specific performance goals and the specific measures to evaluate the level of performance towards the achievement of these goals. As customer satisfaction is the main driver of the organization's profit target, it is of critical importance for the company to enhance its performance level to achieve its goals.
During strategic management, a number of goals may be developed aiming at improving service delivery and the general aspects that the organization engages in. though balanced score cards, it becomes easy for the organization to focus on these items and follow
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