Balance Scorecard As A Technique Used For Performance Strategies

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Balance Scorecard as a Technique used in Performance Strategies

1.0 Introduction
The balance scorecard refers to a component within a comprehensive management system that integrates strategy and operations (Kaplan, 2009, pp. 1265). The balanced scorecard has been a multi-dimensional performance measurement system (Kaplan and Norton, 1992), which over the years has upgraded versions with much interest not only in academic fields (Hoque, 2014); but also as a management tool (Rigby & Bilodeau, 2013). The upgraded versions contain outcome measures and also the performance drivers of each outcome which have been linked together in cause-and-effect relationships thus making the performance measurement system to be a feed-forward control system.
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This created some loopholes and, therefore, the upgraded versions evolved the balanced scorecard model by proposing that the starting point for the model be either the targeting or selection of new metrics. This generation therefore, does not incorporate indicators’ cause-effect.
The second generation instead suggested that the starting point should be a narrative description of strategy that is, classifying strategic objectives based on the four perspectives: finance, customers, internal processes, and innovation and learning to help identify causal relationship between objectives and to allow strategic graphical representation of the strategies by converting the intangible assets into tangible outcomes. This stage thus concentrates in the relation of cause-effect between the indicators and strategic objectives. The second generation has a tool of strategic management that uses strategic graphical maps to show the relation between the indicators and strategy (Lawrie and Cobbold, 2004).
The third generation design model is modified from the second generation design model features to give better functionality and also more strategic relevance. As a result, this leads to development of a further designed element know as the Destination Statement so as to check the objectives, measures as well as targets chosen. Kaplan and Norton assert that the balanced scorecard model should be modified to fit various organizations’ strategies. According to (Zelam et al., 2003), some

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