Marketing

Balanced Scorecard

The complexity of organization management requires managers to be able to visualize performance in several different dimensions that the scorecard allows. This entails the internal business perspective, customer, financial, and innovation and learning perspective. While providing information on the different perspectives, the scorecard minimizes information overload through limitation of the number of measures used. In this regard, the organization cannot suffer too much measures and can add new measures whenever a worthwhile suggestion is put on the table helping the management to focus on the handful measure that are most essential (Kaplan &amp. Norton, 1992). Several companies have adopted this measure and have demonstrated that it brings disparate elements of an organization competitive agendas thus it becomes more customer focused. it improves the quality, enhances teamwork and reduces a new product launch time. Furthermore, it guards against sub-optimization by enabling the management to consider all-important operational measures to determine areas of improvement. Under the scorecard, even the most difficult objective can be attained with a reduced market time.
A company performance to its customers is a major priority for top management. The balanced scorecard aids in this demanding that managers translate their customer’s mission statement on the customer service to specific measures reflecting the customer needs. These customers’ needs fall into four groups namely service, time, cost, performance, and quality. Time determines the required period of meeting the customers’ expectations, as well as the marketing time. Quality measures the accuracy of organizations delivery forecast. Performance determines how company’s products contribute to customer’s value creation. It is fundamental for a company to put a balanced scorecard by articulating

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