Essay on Balanced Scorecard

1871 Words Feb 1st, 2014 8 Pages
Management Tool - Balanced Scorecard

The idea of using Balance Scorecard like a tool for management effective development, firstly was introduced by Robert Kaplan and David Norton. They called their operation Balance Scorecard, for stressing balance of this system, which should be measured by system called Scorecard. The meaning of this concept – embodies managers’ view in reality and link strategy with operative activity, and cost factors. Main purpose of BSC – this system connected with business actions, which directed on customer satisfaction and all employees involved in it. BSC have differences from traditional management, which concentrated only on financial data, because this system orienting managers on adequate
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Therefore require non-financial indicators that will assess the prospects of the state enterprise in the future. Accordingly, it is necessary to use the system for integrating all indicators - Balanced Scorecard.

Balanced Scorecard complements financial parameters of the past has already happened, as well as: 1. Indicates the origin of the revenue growth. 2. Indicates which customers provide it and why. 3. Reveals the key business processes for improvement which should focus the company, so as to better convey its unique offering to the consumer. 4. Helps guide and direct investments in this area working with the staff, the development of internal systems, corporate culture and climate.

Thus, any model strategy can claim to be complete only if it contains answers to questions relating to different areas of our business. Strategy formulation on the basis of BSC activity considered under four perspectives: 1. Finance 2. Customers 3. Internal business process 4. Educating and developing

BSC Benefits

One of the major problems of management is a control. Reaching the strategy, and sometimes up to implementation, enterprises are faced with the need to evaluate the success of their efforts, especially since the strategy development process is

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