How Balance Scorecard is beneficial for the strategic improvement of the Company

Balanced scorecard is a tool used for strategic management and performance evaluation. Performance evaluation takes place when the strategic improvement takes place. Balanced scorecard was invented by Robert S Kaplan and David P. Norton. Balance scorecard helps to understand the overall performance of the company. The four perspectives of the balanced scorecard are financial perspective, customer perspective, Internal business process perspective and the learning and growth perspective.

All companies business and operational management revolves around the financial targets. Developing proper strategy so that company may excel is very important.

How balance scorecard helps to develop the strategy and make it to work out well:
·        To interpret the vision of the company to everyone. This process includes the vision to all and makes everybody conscious to it.

·         To render the vision and strategy needed to communicate with all employees. Explaining the whole procedure, strategies and setting proper goals will help to inspire the employees

·        Proper business planning should be done. Targets should be set to achieve. Resource allocation as per requirement is very important. Follow the strategic initiatives and try to achieve the goals and set milestones.

·        Taking proper feedback from the entire process is important. Knowledge should be gained from loopholes or achievements.

Companies also set personal scorecard for employees along with the organizational scorecard. These help to evaluate each employee’s performance.

Advantages of Balance scorecard in strategic improvement:

·        It helps in better strategic planning

·        It increases creativity and learning among all employees

·        It helps in evaluating the strategic goals and helps to develop the best process.

·        It helps in team bonding and team building

·        It helps in better alignment of projects and initiatives

·        It helps to improve decision

·        It reduces the time frame

·        It helps to reduce the monetary loss.

If a company implements a balanced scorecard and is not getting the results desired It should analyze the possible reasons. This analysis will help in addressing the problems and moving forward.

Organizations implement balance scorecard in different ways. Hence balanced scorecard is never ending process and it helps to develop latest methodology.

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