Balance Scorecard Essay

1101 Words5 Pages
Name: Vinay Bansal Balance scorecard Definition A balance scorecard is a strategic planning and management system that is used to arrange and align the various business activities with the vision statement of an organization. In some cases, a Balanced Scorecard also attempts to translate the sometimes indefinite, moral hopes of a company's vision/mission statement into the practicalities of managing the business in a better way at every level. A Balanced Scorecard approach takes a broader view of an organization and interrelate the processes so that the efficiencies are experienced by all departments and in a joined-up fashion. To embark on the Balanced Scorecard path a company first must know and understand the following: * The company's mission statement * The company's strategic plan/vision Then: * The financial status of the organization * How the organization is currently structured and operating * The level of expertise of their employees * Customer satisfaction level Origin of Balance scorecard Balanced Scorecard has been launched about twenty years ago as a first set of principles for balanced strategic Objectives and Measures/KPIs setting and measurement. The “parents” of Balanced Scorecard are Dr. Robert S. Kaplan, Baker Foundation Professor at Harvard Business School and Dr. David P. Norton, the founder of the consulting team that contributed over the past two decades to the development of Balanced Scorecard into today’s integrated and aligned management system. That company is now called ‘The Palladium Group’ (www.thepalladiumgroup.com) and is based in Massachusetts, near the Harvard Business School. Since their first article about Balanced Scorecard that was published in 1992 in the Harvard Business Review, Drs. Kaplan and Norton have published five books, which have marked the evolution of the BSC framework and of its

More about Balance Scorecard Essay

Open Document