The Balance Score Card Is A Tool Of Strategy Performance Management

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The balance score card is a tool of strategy performance management, which objective was to bring business activities into step with the strategy of organization and monitor its performance against strategic goals, was developed by Kaplan and Norton (1992). Over the past few decades, a large proportion of FTSE 100 companies have implemented the BSC (Hendricks, 2004). At present, hundreds of thousands of organizations in various domains, such as private and public, complied with this international trend (Kaplan, 2010). Aside from the financial criterions that traditional performance measurement tools focused on, BSC also focuses on three additional criterions, containing customer, internal process, and learning and growth to provide a holistic performance outlook (Kaplan and Norton, 1992). The BSC hold financial metrics as the ultimate measure of a firm’s performance. According to Kaplan (2010) and Madsen and Stenheim (2014), financial perspective is important to measure whether a firm’s strategy is align with its overall mission, which could identify limited pertinent high-level financial elements. Put another way, this metrics mainly focus on the question "How do we look to shareholders or investors?" Meanwhile, customer perception exerts a far-reaching influence on organization since customers provide direct revenues through sales, so that their perception of the firm is critical to increase and maintain sale volumes (Casey and Peck, 2004). Kaplan and Norton (1992)
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