The approach of a balance scorecard in achieving strategic objectives in organisation.
Introduction:
In current upsurge in economic condition globally brought on by competition and uncertainty, all organisations are impacted with need for changes to remain viable in
performance of duties. This trend have prompt companies in adopting suitable approach which are unique to its operation and thus being effective in achieving goals objectives and prospect for development. The development of the balance scorecard has become an approach adopted in an organisation operation. It originated as a performance measurement framework that added strategic non-financial performance measures to previous practices of using financial measures for supporting management in arriving at a balanced view of organization performance. It’s framework primarily focus on strategic planning in business, industry, government, and non-profit organisation worldwide by evaluating factors which are most important to improve internal and external communications with customers and align with their prospective goals. In this effort company would be able to increase revenue, cut internal cost and maximise full use of its resources. Generally, four frameworks are approach to which performance is derived for strategic planning in an organisation as mention.
? Financial Perspectives:
This coincides with performance measures such as earning per share, return on capital and return on interest which are used to evaluate the strategic approach by the company or organisation concern. This perspectives evaluates whether the strategic performance measures used by the company in other perspectives is contributing towards objectives of the company in term of maximizing sharehol ...