Balance Score Card

Balance Score Card

Introduction

The paper would be based on providing the overview of Terminal 5 project case study and the use of Balance Score Card (BSC). Balance score card is considered as a tool used for strategic planning and management. It is used in non-profit organizations, industry, business and government to increase internal and external communications. It also helps in monitoring the organizational performance contrary to strategic goals and align business activities to the strategy and vision. It was coined by David Norton and Robert Kaplan as a framework for performance management which added old financial metrics to strategic non-financial performance measures to provide executives and managers a more balanced view of the performance in organization (Ahn, 2001).

Discussion

BSC approach was used by T5 project. The (BSC) is a system of performance measurement, it aims to ensure the implementation of the strategy. The BSC provides a balanced view of the performance of an organization by providing financial and non-financial. The BSC is not limited to financial measures and incentives but it also helps managers in understanding better the various aspects of performance. The BSC for T5 project also enables dynamic control through links between current performance indicators and future performance. BSC is also considered as a motivator as it breaks down strategic measures at lower levels and implies that the heads of departments, operators and employees can see what the requirements are at their level to achieve the overall performance.

BSC as used by other as a shared framework That Integrates the key components of a management system: planning, budgeting, monitoring, evaluation, compensation and incentives. The rapid adoption of the BSC approach across the industries and country clubs suggests that this standard is an authentic source of communication, decision and coordination Economies Within corporate management systems (Basu, Little, Millard, 2009). The four ...