What is the balanced scorecard?

Balanced Scorecard is a performance management tool that companies used to assess their business functions. This tool was developed by Dr. Robert Kaplan of Harvard Business School in the United States and Dr. David Norton and this term was created in the 90's. The balanced Scorecard uses a strategic plan that focuses on four perspectives that the company can use to balance different features in business strategies: financial, business process, learning and growth and customer. The financial perspective includes operational income, the rate of return on capital investment. Financial information is important for companies because all economic resources or business entries must eventually pay. The use of external external financing from debt or equity can limit the company's operating efficiency, as interest must be paid for this funding. The financial perspective concerns how shareholders perceive the company. This perspective focuses on the processThe business costs of the company for the allocation of goods and services, the quality of the goods produced, for how economic resources or inputs are obtained and filled in customer orders. This perspective emphasizes how well the company works and which features may require improvement to increase productivity. It concerns how well the company's products and services meet customer requirements.

The third part of the balanced Scorecard is the perspective of learning and growth. This perspective focuses on internal business operations and how well the company maximizes its employees' resources. Common measures in the perspective of learning and growth include employee work satisfaction, the company's storage storage, the skills of each employee, and the individual capabilities of each employee to effectively and efficiently fulfill business functions. It emphasizes the importance of easy communication between employees, mentoring, tutoring and eFective teaching and learning of new sets of skills. The ability to effectively train employees is the key to the company's ability to change with technology and not only meet customers' needs, but also predict them.

The last part of the Balanced Scorecard system is the customer's perspective. This perspective includes how the company measures customer satisfaction, repeats the sale and analysis of the target market or demographic group. Customers are an important part of the business process; The use of leading indicators described by the method of customers balanced Scorecards can help companies understand how well they meet the needs of consumers and future consumers' desires.

Balanced Scorecard combines these four porphyths to help companies in deciding to create competing business strategies in the business environment. This management tool can also be used to evaluate current business strategies and to repair the strategy. Companies canUse a balanced Scorecard to plan, set goals and develop feedback for use in business operations.