Using BALANCED SCORE CARD

Balanced Score Card is a management tool to align all the resources of an organization to its strategy. It takes four perspectives into account i.e. Internal Aspect, Financial Aspect, Customer Aspect and Learning and Growth for an organization

As far as Financial Perspective is concerned, the aim is to Improve shareholder value. The financial perspective contains productivity strategy, which aims at improving cost structure, and increase asset utilization and revenue growth strategy, which aims at customer profitability and identifying new revenue sources.

The Customer Perspective aims at differentiating value proposition. It adds value to the product/service, relationship and creating a brand image.

The Internal Perspective focuses on how to create and sustain value. It can be achieved by improving the processes that produce or deliver products and services, enhance customer value, create new products or services and improve the environment and community.

The Learning and Growth Perspective focuses on how to use the intangible assets like people, system, and culture to the benefit of the organization.

There have been various Balanced Scorecards, which have evolved like Strategy Card, Stakeholder Card and KPI Card. A typical Balanced Score Card schedule starts with defining strategic architecture, drafting balanced scorecard, developing measures and high level targets and initiatives, and developing implementation plan.