Balanced Scorecard by Kaplan Norton
The meaning of the term Balanced Scorecard is that there should be strategic as well as management planning. The business and industry as well as non profit organizations are set to align the business activities with the major intensive wizards of corporate, for that Drs. Robert Kaplan from Harvard Business School as well as David Norton to measure performance framework which added non-financial performance measures subjected to financial metrics.
Perspectives
The balanced scorecards has one main point of concern from four perspectives to, Develop metrics whilst collecting data and to analyze the same
i. The learning & Growth Perspectives
ii. The Business Process Perspective
iii. The Customer Perspective
iv. The financial Perspective
The Learning & Growth Perspective
As the name suggest, this perspective includes the way the learning activities are established in the system. The growth is directly proportional to the way people know the things, thus this perspective is very much needful and emphasized by Kaplan and Norton. Moreover, the suggested that learning is more essential than training.
The Business Process Perspective
It is very important for the managers to know how the business processes (currently in process) are going on in the industry. The mission should be “optimization”. The customer requirements are to be kept in mind and with the time frame the business processes should be improved.
The Customer Perspective
Business is for the people, thus, while working or setting up the new processes or learning criteria the learners should be well acknowledged that the business as to satisfy the needs of the consumers completely.
The Financial Perspective and strategic mapping
The financial data is crucial for organization, the accurate funding leads to better managerial growth. Many companies establish additional financial perspectives by additional data like risk assessment, cost-benefit data required in this category.
Written by: Matt
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