The Balanced Scorecard is a management tool that provides stakeholders with a comprehensive measure of how the organization is progressing towards achieving its strategic goals. It emphasizes four perspectives - financial, customer, internal processes, and learning and growth - that organizations should consider when setting goals and defining key performance indicators. The Balanced Scorecard helps organizations overcome four common barriers to successful strategic implementation: an unclear vision, objectives not linked to strategy, misallocation of resources, and short-term decision making.

3. The Balanced Scorecard is a management
tool that provides stakeholders with a
comprehensive measure of how
the organization is progressing
towards the achievement of
its strategic goals.

4. The Balanced Scorecard
Why do it?
1. To achieve strategic objectives.
2. To provide quality with fewer resources.
3. To eliminate non-value added efforts.
4. To align customer priorities and expectations
with the customer.
5. To track progress.
6. To evaluate process changes.
7. To continually improve.
8. To increase accountability

5. The Balanced Scorecard
The Balanced Scorecard Collaborative has identifiedd four barriers to
the successful implementation of a strategic plan :
1. Vision barrier: No one in the organization understands the strategies
of the organization.
2. People barrier: Most people have objectives that are not linked to the
strategy of the organization.
3. Resource barrier: Time, energy and money are not allocated to those
things that are critical to the organization. For example, budgets are
not linked to strategy, resulting in wasted resources.
4. Management barrier: Management spends too little time on strategy
and too much time on short-term tactical decision making.

6. The Balanced Scorecard
The balanced scorecard emphasizes four perspectives the firm should take in
formulating goals that target critical success factors and in defining measures:
1. Financial perspective. Goals might include such things as “meet shareholder’s
expectations” or “double our corporate value in seven years.” Measures might include
return on capital, net cash flow, and earnings growth.
2. Customer perspective. Goals might be to “improve customer loyalty,” “offer best-
in-class customer service,” or “increase customer satisfaction.” Measures might include
market share, percentage of repeat purchases, customer satisfaction surveys,and so on.

7. The Balanced Scorecard
3. Internal perspective. Goals might include such things
as “reduce internal safety incidents,” “build best-in-class
franchise teams,” or “improve inventory management.”
Measures might include the number of safety incidents
per month, franchise quality ratings, stockout rates, and
inventory costs.
4. Innovation and learning perspective. Goals might
include such things as “accelerate and improve new
product development” or “improve employee skills.”
Measures might include the percentage of sales from
products developed within the past five years, average
length of the new product development cycle,or employee
training targets.

8. Balanced Scorecard Framework

9. Vision for quality
developmentthe various administrative offices began to develop
their own scorecards.The workflow might look
something like this:
1. Survey the task on the basis of laws, political goals
and other governing documents
2. Construct a stakeholder model
3. Identify customers and their needs
4. Process mapping
5. Identify the most important skills and resources
6. Identify cooperation partners
7. Define the success factors
8. Develop and establish metrics.

10. REFERENCE
Munde, G., & Marks, K. (2009). Strategic planning, the Balanced
Scorecard and benchmarking. In Surviving the Future (pp. 55–79).
Elsevier. https://doi.org/10.1016/B978-1-84334-477-3.50004-3
Nyström, V., & Sjögren, L. (2012). The balanced scorecard. In An
Evaluation of the Benefits and Value of Libraries (pp. 117–126). Elsevier.
https://doi.org/10.1016/B978-1-84334-686-9.50008-X
Schilling, M. A. (2017). Strategic management of technological
innovation (Fifth edition). New York, NY: McGraw-Hill Education.