Question

What is a balanced scorecard? What are its advantages?

Answer 1

Balanced Scorecard:

The balanced scorecard helped the management team to systematically think about performance and financial matrix. Balance scorecard is a process which measured performance of an organization keeping three perspectives as a base which is internal business process, customers and learning and development. While an organization develops its strategy it is quite important to look into short term and long term financial and strategic objectives. This particular scorecard could help them to build these goals.

The importance of balanced score card is explained below:

1. Balanced scorecard is used by the managers to focus day to day activities in the organization.

2. It helps the mangers to monitor the work performance and ensure to estimate the complete time of the project.

3. The managers can measure and prioritize work, so that ensure them to accomplish the assigned tasks.

4. Financial risks can be identified through balanced scorecard and so the managers can avoid risks on the projects.

5. It helps the manager to forecast and predict the future needs so that they could develop quality at work.