Balance Scorecard: Concept, Assumptions, Critique and Examples
Added on 2023-06-15
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Running head: BALANCE SCORECARD
Balance Scorecard
Name of the Student:
Name of the University:
Author note:
Balance Scorecard
Name of the Student:
Name of the University:
Author note:
![Balance Scorecard: Concept, Assumptions, Critique and Examples_1](/_next/image/?url=https%3A%2F%2Fdesklib.com%2Fmedia%2Fbalance-scorecard-concept-assumptions-critique-examples_page_1.jpg&w=3840&q=10)
1BALANCE SCORECARD
Executive summary
The purpose of this report is to analyse the process of balance scorecard usage in
organisation. The discussion briefly summarises the concept of balance scorecard. The main
purpose is to criticise balance scorecard and the assumptions it’s based into. The report also
summarises different perspectives it is used in companies. Different sector like healthcare,
manufacturing and software industries uses this scorecard. It is also used in different
department of an organisation. Therefore, an example of Human resource balance scorecard
is used in this text and described briefly. Moreover the real life usage of balance scorecard in
Ethiopia industry and Tolko Industry’s usage of BSC is summarised in the discussion.
Executive summary
The purpose of this report is to analyse the process of balance scorecard usage in
organisation. The discussion briefly summarises the concept of balance scorecard. The main
purpose is to criticise balance scorecard and the assumptions it’s based into. The report also
summarises different perspectives it is used in companies. Different sector like healthcare,
manufacturing and software industries uses this scorecard. It is also used in different
department of an organisation. Therefore, an example of Human resource balance scorecard
is used in this text and described briefly. Moreover the real life usage of balance scorecard in
Ethiopia industry and Tolko Industry’s usage of BSC is summarised in the discussion.
![Balance Scorecard: Concept, Assumptions, Critique and Examples_2](/_next/image/?url=https%3A%2F%2Fdesklib.com%2Fmedia%2Fbalance-scorecard-concept-assumptions-critique-examples_page_2.jpg&w=3840&q=10)
2BALANCE SCORECARD
Table of Contents
Introduction................................................................................................................................3
Concept of balance scorecard.....................................................................................................3
Assumptions on which balance scorecard is based on...............................................................3
Critically review balance scorecard...........................................................................................7
Benefits......................................................................................................................................7
Drawbacks..................................................................................................................................8
Examples of usage of balance scorecard....................................................................................9
Real life examples of usage of balance scorecard....................................................................12
Conclusion................................................................................................................................13
Reference..................................................................................................................................14
Table of Contents
Introduction................................................................................................................................3
Concept of balance scorecard.....................................................................................................3
Assumptions on which balance scorecard is based on...............................................................3
Critically review balance scorecard...........................................................................................7
Benefits......................................................................................................................................7
Drawbacks..................................................................................................................................8
Examples of usage of balance scorecard....................................................................................9
Real life examples of usage of balance scorecard....................................................................12
Conclusion................................................................................................................................13
Reference..................................................................................................................................14
![Balance Scorecard: Concept, Assumptions, Critique and Examples_3](/_next/image/?url=https%3A%2F%2Fdesklib.com%2Fmedia%2Fbalance-scorecard-concept-assumptions-critique-examples_page_3.jpg&w=3840&q=10)
3BALANCE SCORECARD
Introduction
Kaplan invented the balance scorecard in 1992, which was later published by Norton
in 1996 in an upgraded version (Kaplan and Norton 2012). The performance measurement
tool is one of the most important part of organisation to predict the future. The industries
have also become competitive in nature with changing environment. To achieve success in
this competitive market the companies are also becoming more conscious about their
performance. After globalisation, competing in a global market has also become imperative.
Therefore, this tool of measurement has gain attention of several business personnel’s to
methodically use it according to the organisation’s requirements (Buller and McEvoy 2012).
The following discussion about balance scorecard and different examples from different
sector has been discussed. The balance scorecard comes under the strategic map of the four
perspectives (Casey and Peck 2014). This strategic map helps in drawing an overall
conclusion of from four different perspectives.
Concept of balance scorecard
This tool of measurement has originated to involve two different matters of
measurement and combining them in a proper manner. The age-old financial data to gain
insights in performance, as well as the effect of non-financial data. This also takes into
consideration of the different strategic agenda the company have or had (Pineno 2013.). This
is also known as the strategic linkage model because it takes into account of the strategic
advantage. The measurement features and version has flexibility to change with the different
factors of the organisations.
Introduction
Kaplan invented the balance scorecard in 1992, which was later published by Norton
in 1996 in an upgraded version (Kaplan and Norton 2012). The performance measurement
tool is one of the most important part of organisation to predict the future. The industries
have also become competitive in nature with changing environment. To achieve success in
this competitive market the companies are also becoming more conscious about their
performance. After globalisation, competing in a global market has also become imperative.
Therefore, this tool of measurement has gain attention of several business personnel’s to
methodically use it according to the organisation’s requirements (Buller and McEvoy 2012).
The following discussion about balance scorecard and different examples from different
sector has been discussed. The balance scorecard comes under the strategic map of the four
perspectives (Casey and Peck 2014). This strategic map helps in drawing an overall
conclusion of from four different perspectives.
Concept of balance scorecard
This tool of measurement has originated to involve two different matters of
measurement and combining them in a proper manner. The age-old financial data to gain
insights in performance, as well as the effect of non-financial data. This also takes into
consideration of the different strategic agenda the company have or had (Pineno 2013.). This
is also known as the strategic linkage model because it takes into account of the strategic
advantage. The measurement features and version has flexibility to change with the different
factors of the organisations.
![Balance Scorecard: Concept, Assumptions, Critique and Examples_4](/_next/image/?url=https%3A%2F%2Fdesklib.com%2Fmedia%2Fbalance-scorecard-concept-assumptions-critique-examples_page_4.jpg&w=3840&q=10)
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