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Finance & Accounting
Pages 7 (1757 words)
Table of Contents
Balanced Scorecard 3
Balance Scorecard, a popular strategic management accounting tool 5
Weakness of balance scorecard methodology 8
Business cultures of China 9
One of the tools for measurement of the performance of the organisation is the balanced scorecard method. 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. 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. ...
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