Balanced Scorecard (BSC) Assignment Help

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Balanced Scorecard (BSC):

The concept of BSC was given by Robert S. Kaplan and David Norton in 1992. This management knowledge helps managers to monitor results in key areas. According to Norton and Kaplan, "The balanced scorecard retains traditional financial measures. But financial measures tell the story of past functions, an adequate story for industrial age companies for which investments in long-term capabilities and customer supports were not critical for success. These financial calculates are inadequate, however, for guiding and evaluating the journey that information age companies have to create future value through investment in customers, suppliers, employees, processes, technology, and innovation."

BSC's main type is to move away from the traditional function of meauresing the organization using financial data by calculating the organization using calculate that result in improvement of financial performance in future and activate it to achieve its goals. A balanced scorecard is a management tool that helps in performance calculation of a business from four perspectives:
Financial perspective: The scorecard measures business in terms of financial performance.

Customer perspective: It calculate business in terms of actions that adds customers such as customer surveys.
Internal business process perspective: It adds business in terms of business processes such as money spent on forecasting demand.

Learning and growth perspective: It calculates business in terms of the organization's learning curve. For example, the time spent on training employees.

This helps the managers to monitor the organization's current performance levels and to know about its readiness to operate in future. Using the BSC method, the IT system's performance may be analyzed from these four perspectives.

 

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