Understanding Balanced Scorecard Design and Implement

  • Balanced Scorecard is a tool. In this particular post we will be focussing more on the issues this tool resolves in the organization. In later posts we will be exploring the tool itself.
  • Balanced Scorecard as a tool drives below systems:
    1. Communication System
    2. Performance Management System
    3. Strategic Management System
  • Factors affecting organizations in todays dynamic environment:
    1. Too much focus on financial measures of performance, to measure organizations success
    2. In this era of Information Technology, the intangible assets which are creating far more value for customers are less understood and evaluated
    3. Difficulty in percolation of formulated strategy to all the levels of the organization and hence challenges in strategy execution
  • Balanced Scorecard helps organization in overcoming above mentioned factors affecting the organization, by addressing them as below:
    1. Introducing other measure also to ensure effective Organizational Performance Measurement
    2. Taking into account the value creation aspects of intangible assets
    3. Cascading it to the different levels in the organization to address the challenges in Strategy implementation
  • The next blog of this series will be focussing on “Financial measures and their limitations”. Stay tuned to this space and post your queries if any at rajendra@cunixinfotech.com

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