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 from the Boston area. It was firstly developed as a performance measurement tool whereas now is associated with strategy implementation. BSC offers a quickest way to check where the organization has been and to determine where it is going. Accordingly the BSC measures the organizational performance from more than one view. Using Balanced Scorecard, strategy reaches everyone in a language that everyone can understand and makes sense for them. Thus, if a strategy is expressed in terms of targets and measurements, would be much easier for employees to know what must happen which leads to much better execution of strategy.
Keywords: Balanced Scorecard, performance measurement, strategy.
Introduction and Overview
As a primary motivation in developing Balanced Scorecard (BSC) was that managers were spending too much time analysing data rather than making decisions, also, according to Atkinson, some significant weaknesses in performance management systems were identified at that time which were dominated by “lag” financi...
... middle of paper ...
...rder to change the overall performance. Furthermore, using BSC organisations can have clearer set of goals coordinated to the vision and strategy which allows management to communi¬cate objective expectations for performance, on the other hand, also allowing a greater understanding of those objec¬tives from employees. This empowers both management and staff in making agreements upon improvements which would be beneficial for costumers and the company. Companies which use BSC are able to track financial results by monitoring the process of building effectiveness and improving where there is needed to in order to grow more in the future. Despite, there are some challenges that a company may face while using BSC, the benefits that they get by using it are much higher which means that that Balanced Scorecard become fundamental for managing information of organisation.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- The Relational Properties Approach to a Theory of Interpretation ABSTRACT: This paper reexamines the central thesis of Gadamer’s theory of interpretation that objectivity is not a suitable ideal for understanding a text, historical event or cultural phenomenon because there exists no one correct interpretation of such phenomena. Because Gadamer fails to make clear the grounds for this claim, I consider three possible arguments. The first, predominant in the secondary literature, is built on the premise that we cannot surpass our historically situated prejudgments.... [tags: Gadamer Philosophy Philosophical Essays]
3145 words (9 pages)
- Every child deserves a positive, safe, nurturing, and stimulating learning environment where they will grow academically, socially, emotionally, and physically. My role as an educator is to provide my students with this type of environment as well as an education that will help them succeed academically and become life long learners. It is the responsibility of a literacy educator to provide students with this type of environment, but also to provide instruction that will help students become successful readers and writers.... [tags: Education, Teaching]
1602 words (4.6 pages)
- 3 The Balanced Scorecard Approach a) Traditional financial performance management metrics Traditional financial performance management metrics which are commonly used by companies are as follows, 1) Profitability Measures 2) Liquidity Measures Profitability Measures: This measures the oragnisation’s strength to create benefits from their actions. Generally it explains what are the returns on the investment which shows how good they are doing. It can be used to judge whether company is making enough or not.... [tags: Management, Balanced scorecard, Marketing]
1147 words (3.3 pages)
- 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]
1100 words (3.1 pages)
- There are many approaches to teaching reading and writing. A debatable discussion has been the need for Primary English teachers to provide a balanced literacy program. A balanced literacy curriculum is comprised of three interdependent aspects: learning to read and write, learning about reading and writing and learning through reading and writing (Grice, 2015). However, there are a variety of methods to teaching in English, including integrated, thematic, literature based approaches as well as systematic and explicit skills-focused approaches, which will be further discussed.... [tags: Reading, Literacy, Phonics, Balanced Literacy]
1427 words (4.1 pages)
- Historical Background of Knowledge Management According to the literature available knowledge management practices have been in existences in societies for several centuries (Ives, Torrey, and Gordon, 1998). Ives, Torrey, and Gordon cite the palace archives of Sumer and Akkad and the cuneiform archives at Elba, Syria, which date back 4,000 years, as one of the earlier attempts to capture and store valuable knowledge for future generations in the history of mankind. They also refer to the Library of Alexandria in Egypt (Third Century BC) as an example of human efforts to preserve valuable knowledge.... [tags: Mangement Practices, Society, History]
1597 words (4.6 pages)
- 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).... [tags: Strategic management, Balanced scorecard]
767 words (2.2 pages)
- Introduction The balanced score card (BSC) is tool that is widely implemented by the various strategic levels of management of organizations with the aim of aligning business activities with the vision, mission, and values of the organization (Averson, 1998). BSC is used to provide a frame work that enables the strategic management to measure the performance of the organization involved. It also helps the management to identify the necessary courses of action needed to implement its strategies.... [tags: Strategic management, Balanced scorecard]
828 words (2.4 pages)
- The North End has a rich historical background which has compelled scholars and local citizens alike to delve into the complex issues faced within the inner city. Researchers have helped in seeking understanding and awareness around issues faced by marginalized populations in Canada; primarily the First Nations population. However, stereotypes and racism permeate throughout the north end, stifling positive efforts that exist between community members and organizations; the media also has a hand in misconstruing what takes place within the north end painting a picture of charity and deterioration.... [tags: research, racism, community]
1947 words (5.6 pages)
- 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]
1280 words (3.7 pages)