Balance scorecard also known as BSC. BSC was developed by Robert Kaplan and Norton in the early 1990s. Balance scorecard comes from two words namely balance and scorecards. Balance mean a balance between financial and non-financial performance, short-term performance and long-term performance, the performance of which is internal and external. When the scorecard also mean that the card is used to measure one's performance score. At first scorecard used to measure performance only concentrated to the finance perspective, and ignore the non-finance perspective. According to Kaplan and Norton (1996) balance scorecard later evolved to the four perspectives namely financial, customer, internal business process and learning and growth. Good balance scorecard is necessary to have the following characteristics: • Can define a long-term strategic objective outcome and mechanism for achieving these goals driver performance • Each performance measure must be an element in the relation of cause and effect relationship. • In relation to finance, meaning improvement strategies such as improved quality, customer fulfillment, or innovations that do have an impact on increasing the company's revenue Perspectives in the balance scorecard:
BSC's financial performance using benchmarks such as net profit and ROI, because the benchmarks are commonly used within the company to determine the profit. Financial benchmarks alone can not describe the triggers that make changes in the wealth created by the company or organization (Mulyadi and Johny Setyawan, 2000). Balanced Scorecard is a performance measurement method in which there is a balance between financial and non-financial performance to steer the company towards success. BSC can shed more light on the role in the achievement of its vision in creating wealth accretion (Mulyadi and Johny Setyawan, 2000). • Improved customer satisfied thereby increasing profits by increasing revenue...
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