The Balance Scorecard is a strategic level management planning tool. This tool considered one of the biggest changes in the management community over the last 30 years. Although there are four basic categories in the balance scorecard, the categories are flexible and can be tailors to the business model that a company. This process was created by observation and research. It was noted by, Dr. Kaplan and Norton, the creators of the balance scorecard that companies that a clear vision and strategy in place were more successful, than companies that did not. From that observation four distinct categories were created to measure the goal set with in the company or organization. The ultimate goal of this tool is to keep the four categories
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The balance scorecard has a nine step planning and execution process to make the transition to the use of the strategic business tool. This can be discussed in another topic our focus is the basic understanding of the tool, and the four categories to support the company vision. Senior management teams must create goals that are clearly defined, measurable and realistic for the company to achieve. Once they have been created then they must be written down and clearly articulated to the supervisor staff and employees. Once managers have defined their …show more content…
“Historically, the vast majority of private, public and nonprofit organizations don’t effectively implement strategy. Employees may not understand their role in the plan, budgets may not be linked to the strategies, or management may not make decisions based on the strategies (Niven, Nov 2009). In all effective business tools communication is import to the success of its implementation. The staff must be made aware through workforce education that they can affect the overall success of the company by their level of performance. The goals that they are achieving ultimately impact the financial success for the company. They also impact the willingness of the customer to do repeat business with the company. All of these perspectives impact the health of the business, in a symbiotic relationship. The business scorecard it used properly can assist the company focus on measurable
The balance scorecard has a nine step planning and execution process to make the transition to the use of the strategic business tool. This can be discussed in another topic our focus is the basic understanding of the tool, and the four categories to support the company vision. Senior management teams must create goals that are clearly defined, measurable and realistic for the company to achieve. Once they have been created then they must be written down and clearly articulated to the supervisor staff and employees. Once managers have defined their …show more content…
“Historically, the vast majority of private, public and nonprofit organizations don’t effectively implement strategy. Employees may not understand their role in the plan, budgets may not be linked to the strategies, or management may not make decisions based on the strategies (Niven, Nov 2009). In all effective business tools communication is import to the success of its implementation. The staff must be made aware through workforce education that they can affect the overall success of the company by their level of performance. The goals that they are achieving ultimately impact the financial success for the company. They also impact the willingness of the customer to do repeat business with the company. All of these perspectives impact the health of the business, in a symbiotic relationship. The business scorecard it used properly can assist the company focus on measurable