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Traditional performance measurement, focusing on external accounting data, is obsolete - and something more is needed to provide the information age enterprises with efficient planning tools.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