Running head: ABC INTERNATIONAL, INC. 1 ABC International, Inc. 5 ABC International, Inc. Marquita Watkins HRM5000 | Strategic Human Resource Management South University - Online April 20, 2020 A balanced scorecard (BBC) is a management system and strategic planning performance metric that organizations use to identify and enhance different internal functions and their external outcomes. A balanced scorecard was first introduced by Robert Kaplan and David Norton in 1992. They took previous performance metrics and reformed them to incorporate nonfinancial information. This paper will, therefore, evaluate the purpose of a balanced scorecard, recognise the categories on the balanced scorecard, defend the significance of a balanced scorecard, and, lastly, design a supplemental graphic of a balanced scorecard. Purpose of a Balanced Scorecard BSC has several purposes. Organizations can use BSC to communicate what they want to accomplish. They can also use a balanced scorecard to prioritize products, services, and projects (balancedscorecard.org). Besides that, they can use the balanced scorecard to monitor and measure progress and to align the everyday work that every employee is doing with the company’s strategy. Many large companies all over the world use the balanced scorecard. More than half big companies in Asia, Europe, and the U.S. are using a balanced scorecard, with the use increasing in those areas as well as Africa and the Middle East. According to recent research, BSC is among the top ten mostly largely used performance metric around the world (balancedscorecard.org). Harvard Business Review editors have also selected BSC as one of the most influential management tools of the past seventy-five years. Categories on the BSC Traditional Categories The four categories of BSC are customer, learning and growth, internal, and financial perspective. The financial perspective is normally traditional measures. They usually seek to answer the following question: how should an organization appear to shareholders in order to thrive financially? Financial measures usually convey the economic results for the specific actions already undertaken by the company and focus on measures that relate to profitability (Malgwi & Dahiru, 2014). Under financial perspectives, the most common measures used include Cash Flow, Revenue Growth, Net Operating Income, and Return on Investment. Financial Data such as expenditures, income, and sales are used to understand and evaluate financial performance. Communication Flow The content of an organizational BSC must be communicated to all stakeholders in a clear, timely, correct, structured, complete, and honest manner to arouse company-wide commitment and to gain buy-in for it. When the BSC has been communicated in this manner, the entire company will realize the significance of continuous improvement, strategic thinking, learning, and personal development. The Role of HR Professionals HR professional.