Balanced Scorecard

The four step process given by Kaplan and Norton used across organizations are: ·  Define the measurement architecture- this is the initial level of balance scorecard implementation. The focus areas are strategic business units. ·        Specify strategic objectives-The potential measure of each perspective should be identified and this would make the strategic objective more focused and strong. ·        Choose strategic measures- The parameters of measuring should be related to the actual performance drivers. This would enable to evaluate the progress done towards achieving the objectives. ·       Develop the implementation plan-the targets should clearly defined in balance scorecard . The information system of the organization sould be clearly developed and it should be linked with the top level metrics to lower level of operational activities.

Four perspective of balance scorecard ·           Financial perspective ·           Customer perspective ·           Internal-business process perspective ·           The learning and growth perspective Financial perspective: The financial perspective is the most important aspect of  balance scorecard . It contributes to the bottom line improvement of the company. Finances are critical for companies to monitor and measure. The financial perspective to create balance scorecard are as follows: ·           Company’s turnover ·           Profit and loss margins ·           Fixed cost, variable cost and other costs ·     ...