What is Balanced Scorecard Or Balanced Scorecard Definition

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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

What is a Balanced Scorecard

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