The balanced scorecard concept is one of the most popular strategic planning and management systems these days. And there are good reasons for its popularity. Not only does it seek a balanced between and among the different facets of the business, it is also a good reminder for business owners and executives to not overlook certain parts of the business operations. But what does this concept really mean? And where did it start? Its roots can be traced back to the early part of the mid-20th century although the most intensive study on it did not come into play until the early 1990s.
Drs. Robert Kaplan and David Norton are recognized to be the fathers of the balanced scorecard concept. It was them who were the first to give serious efforts in designing a strategic planning and management system that does not only focus on one part of the business to achieve strategic success. And since then, the concept evolved from being a simple performance management tool into a fully-developed strategic planning and management system that can transform the strategic plan of the organization from being a mere attractive yet passive piece of document into marching orders for the entire organization on a daily basis.
Simply put, the balanced scorecard concept does not only place emphasis on financial measures. It also takes into account the different targets set for the other aspects of the business or organization, namely: customer relationship or satisfaction, internal business processes, and learning and growth. This focus on both the financial and non-financial sides of the business paved the way for organizations to develop more effective plans for improvement.
For example, some organizations view team building courses as mere ways to waste precious time, effort and money. However, this strategic planning and management concept views team building courses in a different way. Team building courses are ways to develop and strengthen teamwork among the members of the organizations, which can lead to more successful execution of marching orders and better chances at achieving organizational goals and objectives.
It can be quite helpful for business leaders and executives to learn more about the balanced scorecard concept and how this can be effectively introduced, adopted, and observed in their organization. In this way, their organization can become a leader in their own field, with good chances of achieving success in their different strategies and goals. And the end results can also be quite positive, as there are satisfied customers, sound financial standing, well-trained employees, and effective and efficient internal business processes.
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The Balanced Scorecard Concept In The Modern Business Setting by Steve