Strategic Performance Measurement Systems (SPMs) Essay example

2766 Words 12 Pages
Table Of Contents
· Introduction……………………………………………………..1
· Balanced Scorecard System (BSC)…………………………….1-2
· Implementation of Balanced Scorecard in SMEs…………….3
Strategy Destination…………………………………………….3
Perspectives……………………………………………………..3-4
Measures ………………………………………………………5-6
· Challenges faced and possible recommendations for overcoming it…………………………………………………………………7-8 · Limitations of BSC…………………………………………….8-10
· Conclusion………………………………………………….......10
· References…………………………………………………….10-12

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Introduction
The progression of the Small to Medium Enterprises (SMEs) has been recognized for the success of widespread development purposes which includes poverty mitigation, advancement of democratic societies and economic
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The conductors of SPMS aim performance programs for their managers and executives which is consistent with the business scorecards and maintains information technology that executes data analysis. This paper examines the benefits and consequences of Strategic Performance Measurement
Systems (SPMs) in various organizations.
Balanced Scorecard System (BSC)
The Balanced Scorecard is a performance management mechanism which facilitates the translation of strategies into a definite set of performance measure for the company. The scorecard contributes an understanding of the long-term performance of an organisation by accommodating financial measures with major performance barometers around viewpoints of customers, internal business processes, and organisational development.
Therefore, the BSC was implemented to get rid of the restrictions of operating with financial measures only. Kaplan and Norton (1992) introduced the balanced scorecard to emphasize corporate focus on performance measurement improvement. When the
BSC is completely achieved it regulates an understanding of how strategy can be

3 | P a g e supported within the organization. It provides feedback to management and contributes to the success of the organization. The Balanced Scorecard emphasizes on four main perspectives for the betterment of the organization. The four distinctive views were considered significant and evaluate future value for companies
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