BALANCED SCORECARD

Balanced Scorecard

[Name of the Institute]

Balanced Scorecard

Introduction

The Balanced Scorecard (BSC) is a concept for implementing business strategy. A BSC starts with the vision and strategy of organization and defined on the basis of these critical success factors (CSFs). Metrics is then constructed so that they promote the objectives and performance in critical areas of the strategy. The BSC is, therefore, derived from vision and strategy management system, which reflects the most important aspects of a company. The BSC concept supports strategic planning and implementation of measures by bundling all units of a company based on a common understanding of its objectives and to improve access to assessment and strategic development.

History

The story of a BSC goes to 1990, when the U.S. Institute of Nolan Norton proposed to conduct a research in the field of organizational performance of the future, as prevalent approaches to the evaluation of organizations inevitably become obsolete. The project was headed by David Norton, director of the Nolan Norton Institute, and scientific advisor was Robert Kaplan. During the first year of the project, project participants and representatives of companies of different industries (financial, manufacturing, utilities, heavy industry and high technology) jointly discussed the content of the new model estimates of the company (Kaplan, Norton, 2000).

Working on a project, the researchers studied, supplemented and improved the variety of promising evaluation system activities of enterprises. Along with the improvement of traditional indicators, such as indicators of business activity, create a completely new indicator of timely delivery of goods or services to a client, quality products and time cycles of production processes. These include performance indicators, new product development, performance improvement, teamwork, efficiency, leadership, etc. The study put forward a variety of ideas, suggestions concerning the content of the indicators system (Kaplan, Norton, 1996). For example, consider including indicators of creating value ...