Advantages Of Balanced Scorecard

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Balanced scorecard is basically a form of strategic planning and management system. This system is heavily used in the industry and business, in the government and non-profit organizations around the world with the aim of aligning the business activities to the organization vision and strategy. It's used to enhance and improve the internal and the external communications as well as monitoring the performance of the organization against the strategic goals. The minds behind the creation of the balanced scorecard are Dr. Robert Kaplan and Dr. David Norton. They created it as a performance measurement framework that included the strategic financial performance measures to the traditional financial metrics to provide the managers and the executives…show more content…
As claim by Gartner group over 50% of US large firm have already adopted the balanced scorecard approach. They also claimed that more than half the major companies in US, Asia and Europe are also using the BSC as well as the growing use in the Middle East and Africa. A recent global study done by Bain &Co has listed the balanced scorecard in the fifth place on its top ten most widely used management tools around the world. The BSC has also been selected by the editors of Harvard business review as the most influential business ideas of the past 75 years (BalancedScoreCard). The balanced scorecards have gone through many changes to accommodate the changes the organization needed over the passing time. For more information about the BSC evolving cycle please refer to Appendix…show more content…
This report talks about a method that is developed based on the traditional BSC that can ease the transition from strategy down to detailed measures making it structured, more consistent and technical, this method is called: QFD (Quality Function Deployment). This methodology is used as a tool of quality management to make the customers' needs and desires are circulation into the production processes. Below figure 2 is the general structure of the QFD. (Cohen, 2011) This report discusses the need to have a structured systematic approach to circulate the strategy into measures and in the end into data collection and reports. Using the QFD approach allows measurement system to be designed to represent the finding into effective dashboard (Cohen, 2011). Literature review 3: A strategy-based method of assessing information technology
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