CLICK TO THE MAIN PAGE FOR ALL ARTICLES UNDER THE HEADING OF BALANCED SCORECARD 

It seeks to introduce the powerful performance management tool called Balanced Scorecard.

Introduction:

Balanced Scorecard is not at all new in the market. It was initiated in 1992 with many companies especially Fortune 1000 adopting the BSC with phenomenal result.

It was originally developed in the early 1990’s by Dr Robert Kaplan ( Prof Harvard Univ) and David Norton (Consultant). Both men researched on exploring new methods of performance measurement. They believed that financial measures of performance alone were ineffective for the modern business enterprise.

Their study identified four areas of performance measures :

• Customer issues

• Internal business process

• Employee activities

• Shareholder concerns

It is believed that with BSC, an organization is able to serve its customers better by:

• knowing customer expectations “up front”,

• establishing strategies and goals consistent with these expectations,

• translating these strategies and goals into achievable action plans,

• providing goals that can be measured.

Nowadays, Balanced Scorecard is often use as a tool in the company’s Measurement system or Strategic management system or as Communication Tool

If you found this post useful, keep updated with future posts by subscribing to FMAccounting (for free) through RSS or email.

Related Entries

• TOPICS COVERED UNDER THIS HEADING:BALANCED SCORECARD
• Balanced Scorecard: Examples Of Customer Perspective KPI
• Balanced Scorecard:Sources/References For KPI’s
• Balanced Scorecard: Examples Of Internal Process Perspective KPI
• Foreign Exchange Management: Performance Management