Balanced Scorecard for Performance Measurement

Balanced Scorecard for Performance Measurement

IntroBooks #260

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Copyright © 2016 Can Akdeniz

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PREFACE

"When you can measure all those words that you are talking about, and break them into numbers, you know really something about it. To the contrary, when you are not measuring anything at all, then you have no idea on what you have spoken.

You have no control over your sayings. The knowledge can be meager in that way, and that could be unsatisfactory as well, says", Dr. Kaplan.

In other words, if you can measure, then you could improve. That is the reason, why business metrics were introduced to measure the performance standards of the organizations, towards improvisation. That is all balanced scorecard is about. Let us see about that in detail.

1.INTRODUCTION

Balanced Scorecard definition

Strategic corporate planning and business management system is defined as Balanced Scorecard. It is used in diverse channels. Government bodies, non-profit organizations, and the varied businesses, as well as the industries. It is used to alight the business operations, to achieve the prime objectives and goals of the institution as a whole. Internal communications are improvised with the implementation of the Balanced Scorecard. External communications are strengthened with the Balanced Scorecard.

Organizational performance coefficient can be deduced with the detailed analysis done strategically based upon the Balanced Scorecard.

1.1 Balanced Scorecard Basics

Dr. Robert Kaplan from the Harvard Business School and his peer in the same institution Dr. David Norton found this system, initially. This was found earlier only as a measured of the performance coefficient. Organizational operations are analyzed strategically to arrive at the performance coefficient denominator finally, as KPI unit.

1.2 What is kpi?

All those factors that contribute towards the success of a business organization are identified