Balanced Scorecard is a useful management tool for charting the company’s Strategic management system/process. Besides, it is also deployed for the business’s Measurement system and as Communication Tool.
Also, those companies which set up Balanced Scorecard are able to service the customers better due to the following reasons:-
- knowing customer expectations “up front”,
- establishing strategies and goals consistent with these expectations,
- translating these strategies and goals into achievable action plans,
- providing goals that can be measured.
Balanced Scorecard is a useful tool for all level of management in terms of:-
- For top management- the company’s vision and mission need to be formulated before any other strategies can evolve ( using SWOT analysis)
- All level of management are able to specifically understand performance management re: on what are really key performance areas and key performance indicators
- When automated, where the Balanced Scorecard have been set, it helps to communicate to all personnel whichever level of hierarchy the company’s common goals/strategy to achieve or enhance shareholder value.
What is important to understand is that the Balanced Scorecard are applicable to individual department or even project and not necessarily on the company alone.
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