The Evolution Of The Balanced Scorecard Essay

The Evolution Of The Balanced Scorecard Essay

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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.” (http://www.bptrends.com/publicationfiles/5-03%20TB%20Evol%20of%20Balanced%20Scorecard.pdf). “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.” (https://faculty.biu.ac.il/~shnaidh/zooloo/nihul/The%20balanced%20scorecard.pdf)

4. Balanced Sc...


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...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. (http://www.yourarticlelibrary.com/accounting/performance-measurement/perspectives-in-balanced-scorecard-4-perspectives/53100/)
Internal Process Perspectives
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Learning and Growth Perspectives
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