Topics: Balanced scorecard, Strategic management, Business terms Pages: 3 (737 words) Published: May 31, 2013
Financial metrics have been the main scorecard of success for hundreds of years. But by themselves they don’t measure the complete health of a business. Financials measure what has already happened—the past. That works fine when things don’t change much. But someone has said that with today’s accelerating pace, running a company using financial data alone is like driving down the highway using only the rearview mirror. Recognizing some of the weaknesses and vagueness of previous management approaches, the balanced scorecard approach provides a clear prescription as to what companies should measure in order to 'balance' the financial perspective. Traditional performance measurement, focusing on external accounting data, is obsolete - and something more is needed to provide the information age enterprises with efficient planning tools. Among the long row of benefits of applying Balanced Scorecard, theese are the most significant: * Strategic initiatives that follow "best practices" methodologies cascade through the entire organization * Increased Creativity and Unexpected Ideas.

* the Balanced Scorecard helps align key performance measures with strategy at all levels of an organization. * the Balanced Scorecard provides management with a comprehensive picture of business operations. * The methodology facilitates communication and understanding of business goals and strategies at all levels of an organization. * Maximized Cooperation - Team members are focused on helping one another succeed. * Usable Results - Transforms strategy into action and desired behaviors.

* the Balanced Scorecard concept provides strategic feedback and learning. * A cross organizational team - More open channels of communications - Enthusiastic People. * Initiatives are continually measured and evaluated against industry standards * the Balanced Scorecard helps reduce the vast amount of information the company IT systems process into essentials. *...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay about Mba503

Become a StudyMode Member

Sign Up - It's Free