The balanced scorecard methodology, considered as the best business idea that emerged in modern times, was a brain child of a Harvard scholar. Dr. Robert Kaplan of the Harvard School of Business together with Dr. David Norton developed this innovative business concept that can be used for effective business management. The balanced scorecard methodology allows managers to measure performance based on the strategic goals of companies and organization. This gives companies a broader outlook in determining their growth.
In the past, the sole key performance index was determined by looking at company financials. This approach can only give partial growth outlook. However, other key areas that are also important to company success are normally overlooked. The balanced scorecard methodology changed this narrow approach by emphasizing also the growth and improvement in customer service, internal business process, and business learning. The balanced scorecard system instituted a comprehensive management solution that can be used by companies to concretely assess the development of their whole organization.
The balanced scorecard system gives utmost importance to performance based on company strategies and visions. This all rounded approach to management allowed managers to accelerate company output that are centered on strategy. The four-pronged management solutions of balanced scorecard can greatly enhance the capacity of companies to answer the needs of their customers while at the same time improving internal core competencies.
The Harvard Business School produced numerous business and management solutions. One of them is the balanced scorecard system. With its emphasis on performance and accountability, it has contributed greatly to the success of numerous companies and organizations.