The Connotation Of The Balanced Scorecard

Robert S. Kaplan and David P. Norton introduced the balanced scorecard, which supplemented traditional financial measures with criteria that measured performance from the perspectives of customers, internal business processes, and learning and growth. The scorecard enabled companies to track financial results while monitoring progress in building the capabilities they would need for growth.

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.

“The balanced scorecard should translate a business unit’s mission and strategy into tangible objectives and measures. The measures represent a balance between external measures for shareholders and customers and internal measures of critical business processes, innovation and learning and growth. The measures are balance between outcome measures, the results of past efforts, and the measures that drive future performance. And the scorecard is balanced between objective, easily quantified outcome measures and subjective, somewhat judgmental, performance…”

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 a strategic planning and management system is used to help align activities of the vision and strategy of the organization, and apply it to the overall

The balanced scorecard uses short- and long-term, internal and external, and financial and nonfinancial measures to evaluate performance. Management can analyze these measures and compare

The balanced scorecard shows the innovation, finance, learning and customers as well to gain the goals associated with this paradigm. In the second column the, measures are there to achieve the goals set in the first column. It extracted through management information knowledge and the environment scanning after research (Whitaker, 2016, pg 131).

The balanced scorecard now plays an important role in organization management. It has been further identified and used as an important tool in today 's business processes. According to Eric W. Noreen et al. (2002), "a balanced scorecard consists of an integrated set of performance measures that are derived from and support a company’s strategy. A strategy is essentially a theory about how to achieve the organization’s goals" (p. 551). Previously, management had been overwhelmed with data for a long

Balanced Scorecard is a general methodology that is being used to improve performance within strategic

Camp, R. 1989. Benchmarking: the search for best practices that lead to superior performance. Part I. A definition, Quality Progress, pp.62-8.

Balanced scorecard—A coherent set of performance measures organised into four categories. It includes traditional financial measures, but adds customer, internal business process, and learning and growth perspectives. It was developed by Robert S. Kaplan and David P. Norton in 1992. Benchmarking—A systematic approach to comparing an organisation’s performance

As mentioned in detail below, the balanced scorecard is a great process used to help measure talent. The balance scorecard is not biased, as it is based primarily on factual information. This abates the influence of personal preference in regards to the measurement of talent and subsequent promotions. Furthermore, the balanced scorecard provides a means to which an individual can ascertain his or her strengths or weaknesses. Through this self assessment, the individuals can alter his development or training to better progress his or her skillset.

Breakthrough of the balanced scorecard to the traditional performance evaluation system is that it has introduced the non-financial