Central theme
In the article “Using the Balanced Scorecard as a Strategic Management System”, Robert S. Kaplan and David P. Norton have introduced the balanced scorecard, a performance tool that help the managers in predicting future performance. In fact, the balanced scorecard method has broken the traditional management system, where the company only focus on financial performance as an indicator of overall success. According to Kaplan and Norton, they think that financial performance can only measure what had already happened, and it is unable to evaluate a company’s future performance. In the industrial era, the conventional management system that focus on financial might be a valid approach. However, with today’s informational society, …show more content…
First, from the financial side, financial performance is commonly used in general business to evaluate company’s overall performance. Financial performance shows whether a corporate strategy or its implementation and enforcement has contributed to company’s overall operation. However, not all the long-term strategy can quickly produce short-term financial profit. For example, non-financial performance indicators such as quality, time of production, productivity and new products can lead to long term financial profit instead of short term. Kaplan and Norton illustrates Style Company’s financial objective: “to double revenues in five years” as an example to emphasize that a scorecard enables the company to align its financial budgets with its strategic goal. In the case of Style Company, the manager believes to define and target each of performance drivers such as numbers of new stores, number of new customers will make this goal easier to accomplish. Therefore, the process of making a balanced scorecard helps the company to clarify the strategic goal, and follow by identifying critical drivers that can help company getting close to its objective. Next, the second perspective is the customers, BSC requires companies to interpret the mission statement, strategic objective, and specific elements that is relate to customer needs. I think that company should focus on the …show more content…
First, it provides strong support for the strategic management. With the continuous development of global economic and the growing competition in the market, strategic management is essential for companies who aims to achieve sustainable development. Balanced Scorecard evaluates the content and related indicators and corporate strategic objectives closely linked to the implementation of corporate strategy through the overall management. The Balanced Scorecard also can improve overall management efficiency. Balanced Scorecard involves four elements that are key elements of the success of the company 's future development. Through the Balanced Scorecard management reports, it links unrelated elements together, which could greatly reduce business managers’ time and improve the overall efficiency of enterprise management. Hence, it will lead to the future success of the enterprises. In addition, balance scorecard helps corporate management to prevent dysfunction. Teamwork is a corporate culture, the BSC combines various elements of business, so that managers can simultaneously consider different functional departments and different roles as a whole, so that they can recognize where the company need to
In the article “Using the Balanced Scorecard as a Strategic Management System”, Robert S. Kaplan and David P. Norton have introduced the balanced scorecard, a performance tool that help the managers in predicting future performance. In fact, the balanced scorecard method has broken the traditional management system, where the company only focus on financial performance as an indicator of overall success. According to Kaplan and Norton, they think that financial performance can only measure what had already happened, and it is unable to evaluate a company’s future performance. In the industrial era, the conventional management system that focus on financial might be a valid approach. However, with today’s informational society, …show more content…
First, from the financial side, financial performance is commonly used in general business to evaluate company’s overall performance. Financial performance shows whether a corporate strategy or its implementation and enforcement has contributed to company’s overall operation. However, not all the long-term strategy can quickly produce short-term financial profit. For example, non-financial performance indicators such as quality, time of production, productivity and new products can lead to long term financial profit instead of short term. Kaplan and Norton illustrates Style Company’s financial objective: “to double revenues in five years” as an example to emphasize that a scorecard enables the company to align its financial budgets with its strategic goal. In the case of Style Company, the manager believes to define and target each of performance drivers such as numbers of new stores, number of new customers will make this goal easier to accomplish. Therefore, the process of making a balanced scorecard helps the company to clarify the strategic goal, and follow by identifying critical drivers that can help company getting close to its objective. Next, the second perspective is the customers, BSC requires companies to interpret the mission statement, strategic objective, and specific elements that is relate to customer needs. I think that company should focus on the …show more content…
First, it provides strong support for the strategic management. With the continuous development of global economic and the growing competition in the market, strategic management is essential for companies who aims to achieve sustainable development. Balanced Scorecard evaluates the content and related indicators and corporate strategic objectives closely linked to the implementation of corporate strategy through the overall management. The Balanced Scorecard also can improve overall management efficiency. Balanced Scorecard involves four elements that are key elements of the success of the company 's future development. Through the Balanced Scorecard management reports, it links unrelated elements together, which could greatly reduce business managers’ time and improve the overall efficiency of enterprise management. Hence, it will lead to the future success of the enterprises. In addition, balance scorecard helps corporate management to prevent dysfunction. Teamwork is a corporate culture, the BSC combines various elements of business, so that managers can simultaneously consider different functional departments and different roles as a whole, so that they can recognize where the company need to