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Publish On: 2018-12-12

Jacob sum

Total Post: 464

Question: What is a balanced scorecard

Reply On: 2013-09-03

Priancka

Total Post: 8

ANS: What is a balanced scorecard

The measurement and implications of EVA and its link to the shareholder value creations. EVA provides a financial perspective; it is a performance measurement as well as a management system. In practice, most organisation balance financial perspective with other (non-financial) perspectives. The most successful organisations do not exclusively rely either on financial or non-financial performance measures. They know that financial per for mace measures reflect the results of the pat actions. No doubt, these measures are important for shareholders as well as all other stakeholders. They must be monitored continuously by mangers. Non-financial performance measures focus on current activities that would drive the future financial performance. Thus, an organisation needs a balanced view on various perspectives of performance. This view point’s referred to the balanced scorecard. The balanced scorecard aims at improving the per for mace measurement systems which focus dominantly on past financial performance and did not consider other perspectives and areas for strategic change and improvement.

The balanced scorecard integrates multiple perspectives and enables organisations to clarify their vision and strategy and translate them into operational objectives and actions. It provides feedback about the internal business processes and external factors that helps in strategic improvement and performance, according to Kaplan and Norton the balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customer’s suppliers, employees, processes, technology, and innovation.

 

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