The importance of using balanced scorecard as a tool of evaluating company performance

Performance Management Reference Materials You have reached a collection of archived material. The content available is no longer being updated and as a result you may encounter hyperlinks which no longer function. Using a Balanced Scorecard Approach to Measure Performance Traditionally, many Federal agencies have measured their organizational performance by focusing on internal or process performance, looking at factors such as the number of full-time equivalents FTE allotted, the number of programs controlled by the agency, or the size of the budget for the fiscal year. In contrast, private sector businesses usually focus on the financial measures of their bottom line:

The importance of using balanced scorecard as a tool of evaluating company performance

Contact Us Why Balanced Scorecard? Why is the balanced scorecard approach important? The short answer is because it is absolutely vital to the success of any business. Balanced Scorecard in Internal analysis Having a balanced scorecard is very important for a business to measure their success and to improve upon their failures.

If a business wants to find ways they can succeed, they can look at their scorecards. They will tell a business where they need to improve.

The importance of using balanced scorecard as a tool of evaluating company performance

This way the business can implement training strategies to help both employees and management staff improve. The scorecards will show where the improvements need to be made and it will also show the successes of the business. Scorecards can be kept on each employee and then their performance can be measured against others.

This will show the employee the areas that they have made improvement on and the areas that they still need to improve on. Balanced Scorecard in Financial analysis On the financial perspective, the balanced scorecard makes the company conscious of their financial status.

The scorecard, again through the four categories, will measure the financial capabilities of the company.

The importance of using balanced scorecard as a tool of evaluating company performance

Their capabilities to spend, to gain money, and to sustain their business with their existing funds make this perspective important. It is very important for a company to keep track of their financial data, and at the same time, create new ways to earn profit.

Since the balanced scorecard concerns strategy, the financial perspective lets the company see if the budget they have at hand will allow them to execute a certain strategy.

Balanced Scorecard in Customer analysis Why balanced scorecard is so important to a business is because the scorecard will highlight the weaknesses within the business and all businesses need to find ways that they can improve in their relations with customers.

Customers are vital to a business as they are basically the businesses bread and butter. Without customers, a business is going to fail. Businesses need to spend a lot of time on improving customer service because this has been a sore point for a lot of businesses to date.

Using a Balanced Scorecard Approach to Measure Performance

Balanced Scorecard in Learning and growth analysis Why balanced scorecard is so important to a business is because it shows that everyone in the business is committed to succeeding. A business is only as good as its managers and employees. Managers need to be able to help an employee understand where they need to improve and they need to be able to provide further training to an employee that needs it.

There will be some employees that will excel over others. Perhaps pairing up these employees with employees that need a little extra help would be a good idea. It is up to the manager to provide solutions for how to improve the performance of the employees.The balanced scorecard (BSC) is a tool that allows managers to better follow and understand not only how their staff is performing, but also how that performance relates to the overall growth of .

Few studies have focused on evaluating the performance of the board of directors using the balanced scorecard. This study is an important attempt to evaluate the sustainable performance of the board of directors using the balanced scorecard by taking into consideration the .

The Balanced Scorecard (BSC) was originally developed by Dr. Robert Kaplan of Harvard University and Dr.

David Norton as a framework for measuring organizational performance using a more BALANCED set of performance measures. The balanced scorecard is a set of financial and non-financial measures regarding a company’s success factors.

It reflects the essence of the organization’s value-creating activities. While. BALANCED SCORECARD AS A STRATEGIC MANAGEMENT IMPLIMENTATION TOOL BY GATEWAY INSURANCE COMPANY LIMITED PRESENTED BY KABIRU, MICHAEL G. SUPERVISOR DR. WAHOME GAKURU The study focused on examining the importance of the balanced scorecard in the implementation of strategy.

The context of the study was Gateway Insurance Company. The balanced scorecard (BSC) is a tool that allows managers to better follow and understand not only how their staff is performing, but also how that performance relates to the overall growth of .

Using a Balanced Scorecard Approach to Measure Performance