Posted by admin on January 4, 2018 in Articles

A Balanced Scorecard
Shante Hicks
March 6, 2016
Jonathan Robert
A Balanced Scorecard
When I first read this assignment I was a little lost by what I thought the meaning of a balanced scorecard is. After I sat and thought about it is basically an overall grade of the business. The balanced scorecard is a strategic planning and management system that is used lengthily in business and industry, government, and nonprofit organizations universal to line up business activities to the vision and plan of the society, improve internal and exterior communications, and monitor organization performance against strategic goals. It was originated by Drs. Robert Kaplan (Harvard Business School) and David Norton as a performance dimension framework that added tactical non-financial performance measures to traditional financial metrics to give managers and executives a more ‘balanced’ view of organizational performance. While the saying balanced scorecard was coined in the early 1990s, the roots of the this type of approach are deep, and include the ground-breaking work of General Electric on performance measurement reporting in the 1950’s and the work of French process engineers (who created the Tableau de Bord literally, a “dashboard” of performance measures) in the early part of the 20th century.
Usually, almost high-class stress was given to financial measures. This approach, which overlooked other key measures, has proven problematic for several reasons. These include a historical and inward focus, a tendency to concentrate on short-term results, and an inappropriate assumption that everything can be quantified. In the words of Kaplan and Norton (1996, p. 24). Unquestionably, monetary actions are important and must be included, but they only represent one view of the firm. Instead of a single measure or single category of measures, what is proposed is a composite of integrated and telling measures or key indicators…