Ultimate solution for Management: Balanced Scorecard
Ultimate solution for Management: Balanced Scorecard
Any company or industry can prosper only if it manages the customer and profit both sides systematically. The true growth of the company lies in not seeing the annual turnover or achieving the target, but in witnessing the knowledge gained by the human resources namely the employees of the organization. This forms the basis of strategic management which was first laid down in number of books written by Dr. Kaplan and Norton. Balanced scorecard was devised taking into consideration of the vagueness prevailing in the approach of the management towards the employees.
The card provides a clear alternative for the company and indicates what should be done in future for measuring the financial perspective and balancing the income and customer. The balanced scorecard is an ultimate management system which enables the organizations to change their outlook and vision. It is the only effective measure which translates the theory into action. It is capable of monitoring the activities of the staff which measures both the internal process and the external outcomes for showing great improvement in results.
Eventually the implementation of this matrix solves the problem of organization and it revolutionizes the academic theory into backbone of the industry. It cultivates overall growth and performance which can be clearly measured using the tools and metrics.
Balanced scorecard does not aim in abolishing the traditional financial perspectives of the company. But it criticizes the story of the past which takes into account only the financial success and not the customer relationship. The inadequacy in these financial measures can be made good by the intervention of the card. Eventually the card has to witness some progress in creating future value taking into account the values of customers, employees, suppliers, technology, process and innovation.
Overall, the card is devised to successfully monitor the organizational performance which helps in reaching the target thereby witnessing internal development of the individual and external growth of the corporate. The industry can truly climb the ladder of success if it takes into consideration the human values, the objectives and vision of the organization, and the resources or financial aspect.