Advantages Of The Balanced Scorecard

The Balanced Scorecard (BSC) is a powerful diagnostic tool which provides managers with a vision and strategy of the organization to completely value the performance of the organization(Roussas & Mccaskill 2015). BSC integrates financial measures with several crucial factors to create a long or short term plan(Huang 2009). This system emphasizes ‘leading and lagging indicators, internal performance perspectives, and quantitative and qualitative objectives’(Roussas & Mccaskill 2015). BSC works by four perspectives:

concept of the Balanced Scorecard (BSC) and to find out the actual meaning of using it.

Balanced scorecard is a methodological tool that businesses use to get a measure by which someone can determine whether the set goals have been met or exceeded. It adds non-financial metrics to traditional financial metrics to give a well-rounded view of the performance in an organization. Balanced scorecards also help organizations to predict their success in meeting their overall strategic goals.

There are four perspectives when it comes to balanced scorecard. First one is learning and growth which means how the information and knowledge are processed and turned into competitive advantage against other companies. Second is about product manufacturing and making sure that all the products are made the same without any defaults. Third one is about customer satisfaction and making sure that customers are happy with product, service and price. Fourth one is about financial performance and making sure that company’s financial data is used properly.

Customer performance: This measure tells the company about the view of customers regarding the company/institute

A balanced scorecard is a performance measurement system, which takes into account the customers, internal business processes, learning and growth, as well as financial

Based on (Marr and Creelman, 2010) found that the balanced scorecard is used to ensure high-performance

The success of the organisations goals & objectives can be measured through the customer, employee and suppliers understanding of the organisations

The balanced scorecard is used in business to make sure the business is meeting the metrics that are previously established. According to Edwards (2011), “[by] focusing on both financial and non-financial performance targets and outcomes, the balanced

The balanced scorecard is a strategic planning and management system is used to help align activities of the vision and strategy of the organization, and apply it to the overall

The internal process perspective looks at the company’s processes that are most important in satisfying the customers and shareholders. One of DSW’s objectives is to maintain or decrease operating expenses. This objective may propose some challenges, as though there will be a cause-and-effect relationship – when expenses are decreased, typically, quality of

The balanced scorecard is a strategic planning and management system that was developed by Dr. Robert S. Kaplan and Dr. David P. Norton in the early 1990's. Their goal was to provide organizations with a clear understanding of what to measure in order to improve performance and results (Balanced Scorecard Institute 2014). The balanced scorecard is a framework that allows an organization to measure performance and compare it to the organization’s strategic objectives and goals (Kinney and Raiborn 2013, 10).

The main goal when defining the internal process perspective was to answer the following question “To satisfy our customers, at which processes must we excel” (BSI 2009, ¶5). Scents & things strategic goals should be developed in a way that will internally meet the customer’s needs and satisfaction. All strategic goals should be defined with the purpose of keeping the company running smoothly and in a way that will help to achieve the promises being made in the mission and vision statement. The strategic goals for Scents & things are to improve business processes and efficiencies, acquire additional services and business options, and improve marketing of store and the marketing of the products and services.

The Balanced Scorecard (BSC) is a performance measurement tool that originated in the business worlds. Performance measurement is a way to track performance over time to assess if goals are being met. Organizations measure their performance to monitor how they’re doing in achieving their overall mission and goals.

Facing the changing of enterprise external environment, it asks for managers should stand at the height of strategic management to makes an overall plan for the development of the enterprise. The Balanced Scorecard (BSC) has great advantages in the link of enterprise strategy and performance management. It covers strategic areas, and includes human resource management. However, it has many shortages and theoretical defect.