The Balance Scorecard

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.

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 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 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).

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.

A scorecard has several measurement perspectives, with the original scorecard having financial, customer, internal business and innovation and learning perspectives. Balanced scorecards are normally a key output from the strategy formulation process. The key goals that are identified as being critical to the success of the business,

A balance scorecard is essential for developing a healthy business growing place. It is a vital key for defining the goals and targets of a company as well as the vision, mission and the SWOTT Analysis. A balanced scorecard is, “A set of measures that are directly linked to a company’s strategy: financial performance, customer knowledge, internal business processes, and learning and growth” (Pearce & Robinson, 2013, p. 194). This company will relate the in-building turbines values, mission, vision and SWOTT Analysis with the four perspectives of the scorecard (financial performance, customer knowledge, internal business process, and learning and

A Balanced Scorecard can be defined as a “performance management tool which began as a concept for measuring whether the smaller-scale operational activities of a company are aligned with its larger-scale objectives in terms of vision and strategy” (Wikipedia 2009, ¶ 1). Scents & Things will need to develop a balanced scorecard that will assist in meeting and help define the company’s values, mission, vision, and SWOT analysis. The balance scorecard is made up of four perspectives; financial, customer, learning and growing, and internal process. This paper will define each of the four perspectives objectives, performance measures, targets, and initiatives. The paper will also show how the perspectives relate

Quality and the Balanced Scorecard Approach: Customer satisfaction, both internal and external, is an important component of a Balanced Scorecard. A Balanced Scorecard approach (BSA) is often seen as one of the key tools that translate strategy into performance. The balanced scorecard model is a clear direction outlining what the organization should measure to balance the financial output. The scorecard retains financial measurement as a summary of their business performance (Kocakulah and Austill, 2007). Moreover, the scorecard will highlight an integrated set of measurement that will link customers, processes, resources, and performance to long-term financial success. The balanced scorecard is a tool that provides the company the framework that translates vision and strategy into actionable tasks. The scorecard is a set of performance measures allowing management a dashboard view of their business. These performance measurements are used to aid the company in setting goals and manage the business's

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

According to Bourne and Bourne (2000), the balance scorecard provides an avenue for the organization to develop an understanding of the existent strategic objectives. The balanced scorecard develops a link between the strategic objectives and organizational performance. The program provides a guideline for the organization to determine the desired level of performance in relation to the organizational objectives.

According to Niven (2006), when choosing measures for the Customer perspective of the Scorecard, organizations must answer three critical questions: Who are our target customers? What is our value

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.