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The Balanced Scorecard System

Decent Essays
“Balanced Scorecard” System (BSC) is a strategic management concept introduced by Robert Kaplan and David Norton in the early 1990s. The Balanced Scorecard (BSC) contains both financial and operational measures on customer satisfaction, internal processes, and innovation and organizational improvement activities (Kaplan, Norton, 1992).
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,
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The above-mentioned strategic scheme should communicate how to create value for the company, respectively, progressively present the logical link between the strategic objectives (presented as schema ovals) in the form of a cause-effect chain. Generally speaking, improving performance in the found goals, from the perspective of Organizational Capacity (bottom row), allows the organization to improve the Goals from the perspective of Internal Processes (the next line up), which in turn allows the organization to create desired outcomes Clients and Finance (the first two lines).
However, BSC, as initially introduced by Kaplan and Norton, has some weaknesses with some of its main hypotheses and relationships highlighted by many authors in the literature. Norreklit states that there is no causality, but rather a logical relationship between the strategic perspectives analyzed. Moreover, the BSC is not a representative tool of strategic management because it does not take into account any link between the organization and competition. Consequently, a discrepancy should be allowed between the company's ongoing strategy and the assumed
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