The Balanced Scorecard ( Bsc )

1385 Words Sep 27th, 2016 6 Pages
The Balanced Scorecard (BSC) is a great invention in the business area due to the utility. This essay will demonstrate the feature and the usage of the Balanced Scorecard, the historical development and the usefulness of BSC. Then the essay will analyse why BSC is suitable for the company to acquire another company.

What is the Balanced Scorecard?
The Balanced Scorecard (BSC) is a powerful diagnostic tool which provides managers with a vision and strategy of the organization to completely value the performance of the organization(Roussas & Mccaskill 2015). BSC integrates financial measures with several crucial factors to create a long or short term plan(Huang 2009). This system emphasizes ‘leading and lagging indicators, internal performance perspectives, and quantitative and qualitative objectives’(Roussas & Mccaskill 2015). BSC works by four perspectives:
 How do customers see us? (customer perspective)
 What must we excel at? (internal perspective)
 Can we continue to improve and create value? (innovation and learning perspective)
 How do we look to shareholders? (financial perspective)(Kaplan & Norton 1992)
Each aspect should be put into a table with goals and measures. Companies should translate goals into specific measures. AS the result companies could know how the results are achieved(Kaplan & Norton 1992).

Briefly describe its historical development.
BSC was firstly introduced by Kaplan and Norton in 1992(Kaplan & Norton 1992). However, original BSC has its…
Open Document