Question

              What are the strengths of using a Balanced Scorecard approach? Hint: Discuss the four perspectives of the Balanced Scorecard and why this is better than just looking at the bottom line (financial measures).

      website: http://www.balancedscorecard.org/BSC-Basics/About-the-Balanced-Scorecard

Answer 1

As given in the article balance score card is beneficial for strategic planning and management.

It contains mission, vision and all the processes as well as objectieves of financial strength, internal objectieves, customer, organizanational capacity

Balance core card gives summary of not only financial growth but also overall growth such as how are the internal processes working, are there quality standard, or check up, how efficient are the internal processes or services. How good are the social initiatives? As far as customer is concerned, their point of views or satisfaction surveys are also measured in balance score card. Is the customer satisfied about the product, delivery or services given. It also states report of customer loyalty. The score card also measures the organizational capacity - i.e. the pool of skilled workers, or required skills. It also states about the improvement in knowledge or in any technological processes. Is there any emplyee retention? Regarding financial status is gives number sor sales, profit etc and also states about investments, foreign market investements.

Hence instead of cheking only bottom line, which can denote progress it is important to know about other areas. And also if in case losses, one is able is to make out what is the reason of loss because of the perspectives covered.