What is balanced scorecard? The balanced scorecard is a form of strategic planning and management system which is used extensively around the world in business, industry, NPO, government organizations alike. The major reason for the use of this strategic planning system is to align the activities of the business along with the strategy and vision of the organization and improving the internal as well as external communication allowing effective monitoring of the organizational strategic goals.
The balanced scorecard strategy was originated by Dr. Robert Kaplan of the Harvard Business School and David Norton as a form of performance measurement that would add strategic non-financial performance measures together with the long-established financial metrics for giving managers and executives a balanced view of where the organization stands and which area is its strong point and what are its weaknesses.
If you talk about Balanced scorecard success stories, the list is almost endless. Since this strategy was first introduced as an effective system of performance measurement, organizations, whether big or small, have used it to great effect for the purpose of measuring their performance and improve the organization as a whole.
The Balanced scorecard success stories have evolved from using it simply as a measurement of performance to a full strategic planning and measurement system analyzing and influence every part of the business. What make the Balanced scorecard success stories set apart is the fact they have actually used this strategy not just in its traditional form, but have moved a step ahead in using balanced scorecard as one of the major instruments that drive the success and failure of the organization and determining how the business need to change keeping in view the balancing act. All this make up Balanced scorecard success stories.
The new form of balanced scorecard today transforms the strategic plan of an organization from an active on to daily marching orders. If gives the basis for not only performance measurement, but also helps in identifying what should be done by the company and how the success would be measured and therefore enabling the executives to take complete control of their strategies.
The balanced scorecard involves the learning and growth perspective, the business process perspective, the customer perspective and the financial perspective. When an organization is able to balance all the above perspectives in line with the goals and objectives it has set for itself, then it truly becomes yet another of so many Balanced scorecard success stories to be found all around the world.
Defense Financial Accounting Service (DFAS), Federal Aviation Administration Logistics Center, Department of Energy Federal Procurement System, Department of Energy Federal Personal Property Management are some of the Balanced scorecard success stories within the government. These organizations have successfully implemented the balanced scorecard strategic and planning system to take their respective organizations to new height making them effective, efficient and move toward their organizational objectives.
In commercial concerns, the biggest Balanced scorecard success stories have been the airline industry and the credit card companies.
Balanced scorecard allows businesses to keep in check all the aspects that are necessary for the effective functioning of a business.