Question

Describe the Balanced Scorecard model of performance management. Identify its strengths and weaknesses. Explain whether this model can be adopted by your organisation (why or why not?)

Answer 1

Balanced scorecard is widely used as strategic business management and planning tool to analyze the critical areas of business.

Balance scorecard aims at providing balanced perspective about the organisation's goals and performance.

First introduced in 1992 by Kaplan and Norton.

BSC is designed and used as a strategic tool by organization to :

1) Communicate the objective of organization and stakeholders.

2) Alignment of individuals output and organisation goals.

3) Evaluation of strategy and performance setting.

4) Measurement of performance,feed feed,gaps and achievements.

It is a four quadrant based approach.

A) Financial management.

B) clinets and stakeholders.

C) Internal business process.

D) Organization development and transformation

strengths :

1) Imbibes mission and vision in strategic goals.

2) Removes ambiguity in business communication.

3) Organization and individual strive towards achievement of common goal.

4) Performance may be measured,evaluated,revised against predefined benchmark.

Drawbacks:

1) It can be an overwhelming framework.

2) It can't be copied preciously from examples.

3) It can be difficult to everyone on the same stage.

4) It requires strong leadership support to be successful.

5) It may appear too rigid for the way you manage.

This model can be adopted my organization because

​​​​​​This model benefits both the organization and the employee.

This model romoves the barrier of communication and all the employees are free of their thought.

Proper work of the employees are evaluated.

And there is strong leadership is present in our organization.

Deapite all the demerits, our organization can adopt Balance scorecard management system.