Balanced Scorecard for Superior Organizational Performance

Abstract

The capital you don't see on the Balance Sheet of an organization is in three forms: Human Capital (the collective skill, knowledge attitudes and behavior of the people in the organization), Information Capital (the resources and processes in place that ensure effective use of the human capital), and Organizational Capital (the values, working relationship and cultural norms at work in the organization). A balance scorecard translates an organization's mission and strategy into set of performance measures that provide the framework for implementing its strategy. You must communicate strategy in operating terms if you expect people to execute on your strategy. The objective of the paper is to evaluate the effectiveness of using balance scorecard in order to improve the organization's performance. In collection of data both reactive and non reactive techniques were used.

BSC is a conceptual framework for translating an organization's vision into a set of performance indicators distributed among four perspectives: Financial, Customer, Internal Business Processes, and Learning & Growth.

The paper concludes that balanced scorecard is a productivity tool with multiple benefits. It is a strategic performance management tool for measuring whether the smaller-scale operational activities of a company are aligned with its larger-scale objectives in terms of vision and strategy. It can be used as a Strategic Management System that will clarify and translate vision and strategy, communicate and link strategic objectives and measures, plan and set targets with aligning strategic initiatives, enhance strategic feedback and learning.

Keywords: Appraisal, measurement measures, rectification, performance, quality, feedback, profitability.