“The balanced scorecard is a strategic and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals (SMGC,2016).”
The Questions are; Where are you? Where you going? And How are you going to get there?
Purpose Behind the Balanced Scorecard
“The balanced scorecard is used to reinforce good behaviors in an organization by isolating four separate areas, such as, the Financial, the Customer, the Internal Business Process, and the Learning and Growth. The balanced scorecard is used to attain objectives, measurements, initiatives and goals that result from these four primary functions of a business. Companies can easily identify factors hindering company performance and outline strategic changes tracked by future scorecards. With the balanced scorecard, they look at the company as a whole when viewing company objectives. An organization may use the balanced scorecard to implement strategy mapping to see where value is added within an organization. A company also utilizes the balanced scorecard to develop strategic initiatives and strategy objectives (Granter,2016)”.
A balance scorecard can’t just be looked at from the financial measure, yet also from a financial trailing of indicator of performance not a leading indicator are not a current indicator. The decision on marketing sales was made from past organization structures, for examples what markets to offer to, what features within those products, how to market and where to market them or sale them, and supporting those sales...
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...es of return earned by investors who move their money around in an emotional response to what is happening in the markets (Anspach,2016).”
The Balance Scorecard history originated by “Drs. Robert Kaplan (Harvard Business School) and David Norton as a performance measurement (see What is a KPI?) framework that added strategic non-financial performance measures to traditional financial metrics to give managers and executives a more 'balanced ' view of organizational performance. While the phrase balanced scorecard was coined in the early 1990s, the roots of this type of approach are deep, and include the pioneering work of General Electric on performance measurement reporting in the 1950’s and the work of French process engineers (who created the Tableau de Bord – literally, a "dashboard" of performance measures) in the early part of the 20th century (Hubbard,2014).”
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