Overview Of The Balanced Scorecard

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

A balanced scorecard is a tool to provide management a way to bridge the gap between the organization’s strategy and vision and the operational processes used to do business. It enables the company to look at more than just the financial targets, but to include nonfinancial measures such as customer service, internal business processes and more. These intangible measures provide better focus on the organization’s long-term strategies. This paper is an attempt to analyze Frieda Fizz decision to utilize a balanced scorecard as they expand into new geographic areas. The strengths and weaknesses of each perspective are discussed along with the pros and cons of using

The financial perspective uses financial performance measures to determine whether the organization’s strategy and actions are profitable. An organization’s financial goals may be as simple as: to survive, to succeed, and to prosper. Survival can be measured by cash flow, success can be measured by growth in sales and income, and prosperity can be measured by increased market share and return on equity. Managers are encouraged to use financial measures like these to demonstrate their financial position to shareholders. (Kaplan and Norton

Introduction- To be competitive, organizations must be both strategic and tactical to the nth degree, must be proactive rather than reactive, and must find a way to measure this easily and accurately. One way to accomplish this is through a Balanced Scorecard approach; a tool often viewed as one of the best tools that helps organizations translate strategy into performance. In general the BSA (Balanced Scorecard Approach) allows for a clear strategic and tactical directions for the organization, retains financial measurements in a summation along with their links to performance, and highlights an important and robust measurement system that links and integrates customers, stakeholders, processes, resources, and performance into single measurement strategy.

Kaplan, R.S., & Norton, D.P. (1996, January-February). Using the Balanced Scorecard as a Strategic Management System. Harvard Business Review, 74(1), 75-85. ESBCO Host.

The balanced scorecard is a strategic measurement strategy used in business and government as a measurement tool. The balanced scorecard should reflect businesses plans and strategic goals. The balance scorecard “was originated by Drs. Robert Kaplan (Harvard Business School) and David Norton (n.n October 8th, 2015). Balanced scorecard is used by managers not only to measure performance but to align their goals and execute the visions and missions of any agency. The balanced scorecard include metrics in different perspective views, these include “The learning and growth perspective, the business process perspective, the customer perspective and the financial perspective”.

This report focuses on the application on one such framework, the balance score card, designed to enhance strategic performance in an organization. .Originally developed and recognised as a performance measurement tool but since incoporation of many ideas, the scorecard is now linked increasingly with strategy execution. Till today

A theory and management approach of the Balanced Scorecard was first “proposed in the Harvard Business Review by Robert S. Kaplan & David P. Norton (1995)” (Knapp, 2001). In the book called ‘The Balances Scorecard’ Kaplan and Norton (1996) translated organization’s mission and strategy into comprehensive set of performance measures. That

This makes the process little too complex. What they perhaps need is some benchmarking indicators to process the data objectively and to come to a conclusion not only correctly but also quickly. It is observed:

The point of the balanced scorecard is to move beyond financial measures for evaluating corporate performance. The underlying assumption of the model is that there are a number of outputs that contribute to the financial objectives, and those outputs can be classified as being oriented towards customers, learning and growth and internal processes. Niven (n.d.) notes that there are three main things that should be taken into consideration when developing strong measures for the customer perspective. The first is "who are the customers?", something that we will assume these organizations have answered. They may also wish to ask "who is not a customer but should be?" in order to drive growth in the business, but it is not a fault that they do not ask this. The second question is "what do our customers expect from us?" and the third

These are enumerated statements a company wants to achieve over a period of time. These are used as a standard of measuring the performance of a business and all the departments which they are consisting of.

The connotation of the Balanced Scorecard shown that not just in the past performance, to put more time on future performance

For managers, BSC identify a comprehensive vision of their company's strategic objectives and a set of measures to improve the its strategic performance. The BSC is either a complex management tool (Ahn, 2001) or a strategic management tool (Hueng, 2000; Pforsich, 2005). BSC's specialized articles analyze and promote the Balanced Scorecard as a performance measurement tool, as a performance management system,

The balanced scorecard transforms an organization’s strategic plan from an attractive but passive document into the "marching orders" for the organization on a daily basis. It provides a framework that not only provides performance measurements, but helps planners to identify what should be done and measured.

Furthermore, according to Shackleton (2007) financial measures prohibit the guidance and evaluation of an organization’s ability to create future value through investments in customers, suppliers, employees, processes, technology and innovation. Shacketon agues that the pressure for reporting on corporate performance today, has confronted the traditional managerial