Balance Scorecard Approach PDF

BALANCE SCORECARD APPROACH Presented by: Group 6 What is Balance Scorecard Approach? The Balance Scorecard (BSC) is a strategic management tool that helps organizations align their activities with their vision and strategy. It goes beyond traditional financial measures to include non-fi...

BALANCE SCORECARD APPROACH Presented by: Group 6 What is Balance Scorecard Approach? The Balance Scorecard (BSC) is a strategic management tool that helps organizations align their activities with their vision and strategy. It goes beyond traditional financial measures to include non-financial aspects that drive long-term success. Used Of A Balanced Scorecard Balanced scorecards allow companies to measure their intellectual capital along with their financial data to break down successes and failures in their internal processes. By compiling data from past performance in a single report, management can identify inefficiencies, devise plans for improvement, and communicate goals and priorities to their employees and other stakeholders. 4 Perspectives of a Balanced Scorecard (BSC) 2. CUSTOMER -The Customer perspective focuses on measuring how well a company serves it's customer. This involves metrics like customer satisfaction, retention, and market share. 3. INTERNAL PROCESSES - The Internal Processes focus on the internal operational goals and the processes that drive performance within a company. This perspectives examines how well the company's internal functions production, logistics, and support services are optimized to achieve 4. Learning and Growth - This focus on analyzing through the investigation of training and knowledge resources. This perpectives handles how well information is captured and how effectively employees use that information to convert it to a competitive advantage within the industry. Developing and Implementing A Balance Scorecard Implementing the balanced scorecard requires a strategic approach, focusing on translating an organizations vision into clear operational objectives. It’s about balancing financial metrics with performance indicators like internal processes, customer perspective, and organizational growth. Benefits of a Balance Scorecard Scorecards provide management with valuable insight into their firm's service and quality in addition to its financial track record. By measuring all of these metrics, executives are able to train employees and other stakeholders and provide them with guidance and support. THANK YOU