Question

Would a Balanced Scorecard be useful to an organization's strategy implementation process? Why? Is so, should an organization use it?

Answer 1

A balanced scorecard is a tool used to identify, improve, and control a business's functions and resulting outcomes. It's a tool used for measuring performance of an organization, which help the managers to monitor and measure the levels of performance activities done by the staff. Balanced score card is developed by Kaplan and Norton in 1992.

The four perspectives of balanced score card are financial performance, customer satisfaction, internal business processes, learning and growth. The importance of the Scorecard lies in the capability to help organizations achieve strategic goals through defining and aligning strategic objectives as well as managing strategy implementation. It is a framework that helps you to translate top level strategy into specific objectives, a set of measures, indicators and actions. It helps in align the day-to-day work that everyone is doing with strategy.It also helps in measuring and monitoring progress towards strategic targets.