- Balance Scorecard
- Balance scorecard refers one the significant tools used in strategic performance. The scorecard consists of a semi-standard report that is designed with various methods. The main use of this particular tool is to be used by managers in order to keep track of various activities that take place within the organization. The staff members are the ones who enact most of these activities and they require control and monitoring. A balance scorecard assists an organization in various planning activities that entails by reflecting various business aspects. Through this process, the management of an organization is able to respond in the recommended time to progress and make various changes in the business structure.
- Another significant importance of a balance scorecard is that it provides the management of an organization with the ability to clarify various important goals that need to have the first priority. This enables the organization to clarify its vision and strategy of which it translates in the necessary recommended actions. Moreover, balance scorecard provides the management with the ability to identify various internal business processes and their consequences in order to improve the performance of the organization.
- Balance scorecard holds various perspectives, which assist in evaluating the performance of an organization. One of these perspectives is financial perspective. The main role of this perspective is to identify the shareholder value and return on investment. The other perspective under balance scorecard is known as customer perspective. The main role of this perspective is to reflect on customer satisfactions. Moreover, this perspective assists in identifying how the organization plays its role in maintaining customer relationship. The other perspective is process perspective. The importance of process perspective is to assist the management in identifying the right processes that it should use for the organization to achieve the targeted goals.
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