The Evolution Of The Balanced Scorecard Essay

The Evolution Of The Balanced Scorecard Essay

Length: 767 words (2.2 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

3. The Evolution of the Balanced Scorecard
The Balanced Scorecard began with the idea that managers should be measuring more than just the financial results of the company when determining the success of the organization. The term was first coined by Robert S. Kaplan, a Harvard Business School accounting professor, and David P. Norton, a business consultant, when they wrote an article published in the Jan/Feb 1992 issue of the Harvard Business Review entitled, “The Balanced Scorecard – Measures that Drive Performance.” ( “The balanced scorecard has been adopted successfully in all types of organizations, including both large and small, manufacturing and service, public and private, growth and mature, and profit and nonprofit organizations. Initially, it was developed as a performance measurement tool to be used to capture the value-creating activities from an organization 's intangible assets: innovative products and services, customer loyalty and relationships, and employee skills and motivation. Kaplan and Norton contend that these assets could not be adequately valued through traditional financial measurements alone. As they gained experience, they determined that the balanced scorecard had evolved into an effective tool to implement and direct strategies throughout an entire organization. By placing strategy at the heart of the performance measurement process, the Balanced Scorecard graduated to a strategic performance management system. The balanced scorecard still continues to evolve and mature, illustrating the concept 's flexibility.” (

4. Balanced Sc...

... middle of paper ...

...ify the customer and market segments in which the business unit will compete and the measures of the business unit’s performance in these targeted segments. Ultimately, if the customers are not satisfied with the product or service offerings of a corporation they will eventually find other supplied that meet their needs. If a company is not performing well from a customer perspective this is a leading indicator that of future decline for the financial future of the company. Having this customer perspective enables business unit managers to articulate the customer and market-based strategy that will help to deliver superior future financial returns for the organization. (
Internal Process Perspectives
Learning and Growth Perspectives

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

The Team Of Team Development Essay

- Analysis; Tuckman (1965) describes four stages of team development, these being; Forming, Storming, Norming & Performing. The team began to form before I even arrived, as the existing team were aware of my imminent arrival, and most knew me or knew of me. As Tuckman (1965) wrote, team members often display excitement, fear and anxiety, and this was apparent in that some felt that I was a “new broom” brought in to clear out the dead wood, and others were excited at the prospect of change. McGrath & Bates (2013) suggest that the team leader should provide guidance from the inception of the team, and clearly set out their aims, objectives and expected contributions, whilst listening to their co...   [tags: Management, Balanced scorecard]

Better Essays
1127 words (3.2 pages)

Benefits Of A Balanced Scorecard Essay

- There are many reasons for Worldclass to continue the use of its balanced scorecard. On their organizational scorecards, the focus was on the customer perspective, which includes such indicators as customer satisfaction and net promotor score (an annual customer satisfaction measure of percent of sales, marketing, customer care and product quality of the organization). Since a typical analysis of the company would not provide non-financial data such as data pertaining to how they are doing in regards to customer satisfaction, continued use of the balanced scorecard is essential to monitor this activity....   [tags: Balanced scorecard, Strategic management]

Better Essays
921 words (2.6 pages)

Essay about Balanced Scorecard For Tyson Food

- Balanced Scorecard The balanced scorecard (BSC) is a strategy used in organizations to determine their performance measures (Meredith & Shafer, 2016). The BSC provides knowledge into four perspectives of an organization; financial performance, customer performance, internal business process performance, and organizational learning and growth (Meredith & Shafer, 2016). There are many elements of the BSC, including the strategy map which displays the cause and effect relationships between the four perspectives to achieve a specific organizational goal (Meredith & Shafer, 2016)....   [tags: Balanced scorecard, Management]

Better Essays
1580 words (4.5 pages)

Sustainability Practices : The Balanced Scorecard Essay

- While more e-commerce companies are focusing on refining their sustainability practices, it can be very costly and hard to justify in today’s economy. The Balanced Scorecard is a comprehensive approach used to help businesses understand how sustainability practices can have an effect on their productivity and business strategies. This report focuses on different options that Gogotech can use to integrate sustainability measures into their Balanced Scorecard, in conjunction with issues to consider when creating quantifiable metrics....   [tags: Strategic management, Balanced scorecard, Customer]

Better Essays
1280 words (3.7 pages)

Balanced Scorecard : An Organization And Human Resources Essay

- Balanced Scorecard Companies need to determine whether they are meeting the mission, strategy, and objectives. Many businesses use a balanced scorecard to weigh performance against the enterprise’s strategic components. The human resources (HR) balanced scorecard will have to determine if the internal performance meets the firm’s strategic plan and mission. In the following describes what a balanced scorecard means to an organization and HR, and what the HR balanced scorecard will assess for Best Buy....   [tags: Strategic management, Balanced scorecard]

Better Essays
831 words (2.4 pages)

Historical Background Of Balanced Scorecard Approach Essay

- Abstract Businesses use many indicators in order to measure what is going on in their markets. Good leaders of organizations every time check if they are achieving their business strategies, if they are meeting their customer needs and also the most important thing if they are making any profit. Therefore, an easy way of getting those answers is by using Balance Scorecards (BSC) which focuses on the factors that are critical for the success of the business. The historical background of Balanced Scorecard approach started at 1990s as a system developed through some innovation and changes by Robert Kaplan, an accounting professor at Harvard Business School and David Norton, a consultant also...   [tags: Strategic management, Balanced scorecard]

Better Essays
1652 words (4.7 pages)

Performance Measures And Balanced Scorecards Essay

- Performance Measures & Balanced Scorecards Almost every company that exists utilizes a type of performance measure to evaluate and gauge the company’s overall effectiveness. However, over the years there has been many questions raised regarding performance measures and how it affects an organization. Theoretical questions were raised, for example, companies were not sure of what to measure or how to measure performance effectiveness. In addition, questions were raised on how to define different job elements and how to connect those job elements in with the company’s overall assessment process, which included the company’s goals, objectives, and functions (Matthews, 2011)....   [tags: Balanced scorecard, Strategic management]

Better Essays
1100 words (3.1 pages)

The Balanced Scorecard For A Business Community For Many Years Essay

- The balanced scorecard has been used in the business community for many years (Evans, 2002). The balanced scorecard is used to put all the information that a company needs for its strategic plan into an easy to understand and read chart. There are many different versions of the balanced scorecard, but the standard scorecard lays out how the company can increase its profits by looking at the internal working of the company, the customer service, and the education of the company. The Heathrow Terminal 5 project used a unique balanced scorecard....   [tags: Balanced scorecard, Strategic management]

Better Essays
832 words (2.4 pages)

The Balanced Scorecard Is A Technique Execution Administration Device Essay

- The balanced scorecard (BSC) is a technique execution administration device - a semi-standard organized report, bolstered by configuration routines and mechanization instruments that can be utilized by directors to stay informed concerning the execution of exercises by the staff inside of their control and to screen the outcomes emerging from these activities. Main characteristics of balances scorecard is: • Its emphasis on the vital plan of the association concerned. • The choice of a little number of information things to screen....   [tags: Strategic management, Balanced scorecard]

Better Essays
709 words (2 pages)

A Report On The Balance Scorecard Essay

- ACCOUNTING AND FINANCIAL MANAGEMENT ACC5502 A Report on the Balance Scorecard for Pioneer Company Name of Tutors : Dr. Bonnie Hampson University of Southern Queensland Queensland, Australia : Stanley Proctor UUNZ Institute of Business Auckland, New Zealand Due Date : 30 April 2015 Prepared by: Catherine C. Zaide Student Number at UUNZ : 703727 Student Number at USQ : U1076832 As requested by the accountant of Pioneer Company here is a report regarding the Balanced Scorecard and it’s use in assisting the company’s progress towards its objectives....   [tags: Balanced scorecard, Strategic management]

Better Essays
1165 words (3.3 pages)