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Essay example - Managerial Accounting
Finance & Accounting
Pages 7 (1757 words)
In today’s complex system of business balanced scorecard is the most widely used performance measurement strategy. This measurement of performance strategy was initially developed by Dr. David Norton and Dr. Robert Kaplan in 1992. …
Extract of sample
The balanced scorecard method comprises of four different perspectives like, customer perspectives, financial perspectives, innovation and learning perspective and lastly the internal business process perspective. By the implementation of these perspectives the balance scorecard captures the lagging and the leading indicators which gives a balanced notion over the performance of the organisation. The leading indicators of the organisation measure the development of a new product, timely delivery of the product, satisfaction of the customer, competency of the employee, etc. However, under the lagging indicator of the organisation comes the financial measure of the organisation related to the profitability and its revenue growth. Thus the adoption of the balanced scorecard method is widely accepted around the globe because this enables the organisation in aligning staffs of all the levels under a single strategy for its successful execution. The main benefits that can be drawn from the implementation of the balanced scorecard method are the translation of the strategy into more easily understandable operational goals and metrics, alignment of the organisation around a coherent, single strategy, increasing the feasibility of strategy making it an attainable task for both the superiors and the subordinates as well, making the development of the strategy of the organisation a continuous process and lastly mobilizing change through effective and strong leadership (Johnson, n.d., pp.1-5). ...
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