what is a balanced scorecard approach course hero

A balanced scorecard is used to help in the strategic management of organizations. The balanced scorecard is anchored on four perspectives, which include financial, business process, customer, and organizational capacity. It enables entities to discover their shortcomings and come up with strategies to overcome them.

Full Answer

How to implement the Balanced Scorecard?

The balanced scorecard is a method for organizations to consider both financial performance and operational performance when evaluating an investment center within a company. An investment center is a business unit within a larger business that is responsible for its own income, expenses, and assets and that can contribute directly to the profitability of the larger …

What are the four balanced scorecard perspectives?

A new approach to strategic management was developed in the early 1990's by Drs. Robert Kaplan ( Harvard Business School ) and David Norton . They named this system the ' balanced scorecard ' . The balanced scorecard approach provides a clear prescription as to what companies should measure in order to ' balance ' the financial perspective .

Is balanced scorecard a good performance management tool?

The balanced scorecard is a management system aimed at translating an organization's strategic goals into a set of organizational performance objectives that, in turn, are measured, monitored and changed if necessary to ensure that an organization's strategic goals are met. SUMMARY A balanced scorecard is used to help in the strategic management of organizations.

What is the function of "balanced scorecard"?

 · Question 6 What is a balanced scorecard approach? a) An assessment that focuses on the financial activity of an organization b) An assessment that focuses on the …

What is a balanced scorecard approach?

The balanced scorecard is a management system aimed at translating an organization's strategic goals into a set of organizational performance objectives that, in turn, are measured, monitored and changed if necessary to ensure that an organization's strategic goals are met.

What is a balanced scorecard approach quizlet?

Balanced Scorecard. a strategic-based performance management system that typically identifies objectives and measures for four different perspectives: the financial perspective, the customer perspective, the process perspective, and the learning and growth perspective.

How do you use the balanced scorecard approach?

Start with a space for all four perspectives and just add what specifically applies to your organization.Determine the vision. The company's main vision belongs in the center of a balanced scorecard. ... Add perspectives. ... Add objectives and measures. ... Connect each piece. ... Share and communicate.

What are the four performance categories of the balanced scorecard approach to performance measurement?

The four perspectives of a traditional balanced scorecard are Financial, Customer, Internal Process, and Learning and Growth.

What is a balanced scorecard and why are more companies using one quizlet?

Balanced Scorecard. a strategic planning and management system used to align business activities to the vision and strategy of the organization by monitoring performance against strategic goals.

What is the purpose of the balanced scorecard list and explain the four perspectives of the scorecard?

A balanced scorecard is used to help in the strategic management of organizations. The balanced scorecard is anchored on four perspectives, which include financial, business process, customer, and organizational capacity. It enables entities to discover their shortcomings and come up with strategies to overcome them.

What is balanced scorecard example?

Therefore, an example of Balanced Scorecard description can be defined as follows: A tool for monitoring the strategic decisions taken by the company based on indicators previously established and that should permeate through at least four aspects – financial, customer, internal processes and learning & growth.

What are the benefits of using balanced scorecards?

Balanced Scorecard AdvantagesIt gives structure to your strategy. ... It makes it easy to communicate your strategy. ... It aligns your departments and divisions. ... It helps your employees see how their individual goals link to the organizational strategy. ... It keeps your strategy front and center of your reporting process.

How can a balanced scorecard help an organization?

A balanced scorecard helps in drafting organizational strategy by defining what is important to the company. Reporting production, program operations and service delivery metrics helps your company evaluate how well it is doing and where it needs to pay more attention, based on the company's vision and mission.

What are the four components of a balanced scorecard?

The four categories of a balanced scorecard are financial perspective, internal business perspective, customer perspective, and learning and growth perspective. Financial perspective measures are usually traditional measures, based on financial statement information such as EPS or ROI.

What are the main features of balanced scorecard?

The features of the Balanced Scorecard:Clarify and communicate business priorities and objectives to the entire organization.Define and manage action plans to ensure that there are activities and programs that will deliver the strategic objectives.Monitor and measure progress on strategic objectives.

What is an advantage of using a balanced scorecard approach quizlet?

What are 3 advantages of using balanced scorecard? - Easier to visualize how goals are currently being met and how to meet these goals as BSC uses many perspectives. - Can monitor performance of workers and make plans accordingly, indicating if a company is successful.

What are the key features of a balanced scorecard?

The key features of a balanced scorecard include a focus on a strategic topic relevant to the organization, and the use of both financial and non-financial data to create strategies.

Why do organizations use balanced scorecards?

Other personnel in the organizational hierarchy can depend on the balanced scorecard to show their contribution to the growth of the business, or their suitability for job promotions and salary reviews. The key features of a balanced scorecard include a focus on a strategic topic relevant to the organization, and the use of both financial and non-financial data to create strategies.

What is the difference between a shareholder and a stakeholder?

Generally, a shareholder is a stakeholder of the company while a stakeholder is not necessarily a shareholder. , customers, and suppliers.

What is strategic planning framework?

A strategic planning framework that companies use to assign priority to their products, projects, and services; communicate about their targets; and plan their routine activities