The balanced scorecard system has been proven to be very effective in improving the general performance of companies, government agencies, and non-profit organizations. The role of managers in the implementation of balanced scorecard should be defined clearly. This will ensure that correct implementation of this strategic management methodology can be realized.
The balanced scorecard system allows managers to view the performance of the company from different perspectives. This will enable managers to get a comprehensive picture of the overall development of the company. The balanced scorecard system also enables many managers to find out the weak points and missing links that sometimes hamper the growth of the company. Through the balanced scorecard system, these organizational fetters are corrected and pro-active actions are carried out in order to balance the development of the company. Managers should rely on facts that are generated from the key performance index of each component stage of balanced scorecard. This fact based management will be useful in the decision process of management teams. The data provided by the balanced scorecard mechanisms are good sources of information on the status of company tasks. Managers will know the present levels of performance and they could chart future goals based on current performance.
The balanced scorecard system gives managers the necessary tools that are important in the decision making process. Managers can concretely analyze different business concerns and apply solutions to it. The balanced scorecard system raises the capability of managers to investigate different work processes simultaneously without losing focus.