Balance Score Card Case Study

In today’s world most organisations have to compete in a complex and turbulent environment, therefore, an accurate understanding of their goals and the methods for attaining those goals and for that matter how these organisation create value for their shareholders cannot be overemphasized. The balance score card provides business managers with the instruments they need to navigate to future competitive success (Kaplan & Norton, 1996). The score card provides a system for measuring and managing all aspects of an organization’s performance across four different but linked perspectives that are derived from the organization’s vision, strategy and objectives; financial, customers, internal processes, and learning and growth perspectives.
The study will be based on the balance score card theory, the contingency theory and the open system theory. The balance score card …show more content…
The balance score card is a strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communication and monitor organizational performance against strategic goals. It is a performance measurement tool that considers not only financial measures but also customer satisfaction, business process and learning measures (Johnson,Scholes&Whittington, 2008).
According to Kaplan and Norton (1996), the balance score card is a new framework for integrating measures derived from strategy and while it retains financial measures of past performance, it introduces the drivers of future financial performance. In this way, it enables organizations to monitor the intangible assets needed for future growth. These drivers include customers, internal- business process and learning and growth perspectives which are derived from a clear and rigorous translation of the organization’s strategy into tangible objectives and