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Essay / The Balanced Scorecard - 892
IntroductionThe Balanced Scorecard is a strategic planning and management system developed by Dr. Robert S. Kaplan and Dr. David P. Norton in the early 1990s. Their goal was to provide organizations with a clear understanding of what needed to be measured in order to improve their performance and results (Balanced Scorecard Institute 2014). The balanced scorecard is a framework that allows an organization to measure its performance and compare it to the organization's strategic objectives and goals (Kinney and Raiborn 2013, 10). , and financial and non-financial measures to evaluate performance. Management can analyze these measures and compare them to the organization's goals (Kinney and Raiborn 2013, 11). The Balance Dashboard allows managers to analyze a business from four perspectives: the customer perspective, the internal perspective, the innovation perspective and learning perspective (learning perspective and growth) and the financial point of view (Kaplan and Norton January/February 1992, 72). Each perspective has goals and metrics that help develop the balanced scorecard. Customer Perspective Every organization should ask itself: "How do customers see us?" Most organizations mention their commitment to serving their customers in their mission statement. The balanced scorecard, from the customer's perspective, requires management to break down its overall customer service mission statement into four specific measures: time, quality, performance and service, and cost (Kaplan and Norton January/February 1992, 72-74). “Customers must believe that when a product or service is purchased, the value received is worth the price paid” (Kinney and ...... middle of article ......obias Hahn, Stefan Schaltegger and Marcus Wagner 09/2002. “The Sustainability Balanced Scorecard – Linking Sustainability Management to Business Strategy.” Business Strategy and the Environment 11 (5): 269-284. . and David P. Norton. “The Balanced Scorecard – Measures that Drive Performance.” Kinney, Michael R. and Cecily A. Raiborn 2013. Cost Accounting: Foundations and Evolutions, 9th edition Cengage. Learning. Mehta, Foram 2011. . Understanding the Disadvantages of a Balanced Scorecard. Accessed February 2014. www.buzzle.xom/articles/understanding-the-disadvantages-of-a-balanced-scorecard.html. .Paranjape, Bhagyashree, Margaret Rossiter and Victor Pantano 2006. “Performance measurement systems: successes, failures and the future – a review of measuring business excellence.. » 10 (3): 4-14.